Which Recruiting Method is Right for You?

Author: Christina Puleo Published: August 2022

As an employer, there are many ways to search for candidates. Some like to advertise on job boards while others like to hire within their own company. With dozens of terms like Contract and Contract-to-Hire being used interchangeably, what do they mean? And which one is the right fit for you?

Staffing

Staffing is traditionally focused on short-term projects, but can also cover long-term roles depending on which method is used. Here are five common types of recruitment.

Contract

Short or long term contractors are supplied for project support. The recruiting firm handles all expenses with the employee such as:

Federal Insurance Contributions Act (FICA)
Federal or State Unemployment Tax Act (FUTA / SUTA)
Labor Rates & Insurance

The employee will work under the staffing agency, avoiding co-employment issues. The company is only billed for hours physically worked by the contractor.

Contract-to-Hire

Here, the staffing agency will search for a permanent employee through a contract-to-hire scenario. After a designated amount of time at a client’s site, the client can hire the employee without additional fees. The staffing agency will bill an hourly rate that includes all recruiting and payroll fees.

Direct Placement

The client agrees to pay a certain percentage of a qualified candidate’s first year annual base salary. This is the minimum amount of money a candidate will be paid for the work they’ve completed. The staffing firm recruits, identifies, screens, and coordinates the interview process of permanent employees for the client to hire.

Payroll Services

The client identifies potential employees such as interns, co-ops, or retirees, for project support without insurance or tax liability. The recruitment firm provides the client with a payroll service, ensuring that the employee is paid on time.

Recruitment Process Outsourcing (RPO)

Employers transfer all or part of their recruitment processes to a staffing company’s RPO. The staffing company can then provide their own employees or assume the company’s current staff, technology, methodologies, and reporting to ensure better quality hires.

Which Method Is Best For You?

This is dependent on how much time and money your company has or is willing to sacrifice. If a role needs to be filled quickly, you could put together a hiring kit for multiple staffing agencies and see which yields the best results.

If more time is available, working closely with one recruiting firm that aligns with your values can produce a higher quality employee. Companies who want to be hands-on in the process can also filter through applications and interviews themselves, another method that takes additional time.

Research the staffing companies in your area and plan how your company will operate before and after the role is filled. BestLogic Staffing offers the services listed and will work hard to improve your business. Whichever you choose, make that recruitment style work for your business!