June 29, 2023

What is hourly recruiting


It is my deep conviction that just as there is no ideal, convenient for everyone business plan or universal business model, way of conducting negotiations, or job interviews, there is not and cannot be a single approach of payment for recruiting services suitable for all. It can be considered a hypothesis that does not require proof that each enterprise will fit its specific method since there are no two identical companies.

But such an extremely individual approach to doing business will not get you far either. I will not dispute that at all. That is why our agency, having made every effort to implement an unconventional approach to each of our clients, has developed a list of some most successful payment models, reasonably assuming that one of them is highly likely to fit them. And one of the methods we operate with is hourly recruiting or hourly rate recruitment.

Now, to keep the reader's interest, it only remains for me to tell more about hourly hiring, hourly recruiting services, and, on the whole, hourly recruitment outsourcing, which I will not hesitate to do below.

What does hourly recruiting involve?

Hourly contract recruiting

Speaking about it, I mean hourly contract recruiting. It denotes a legal hourly contract recruiting agreement between two parties. The independent contractor, represented by the recruitment agency, charges the client an hourly rate for the time spent on the project.

This model has the following features:

  • The final payment is typically 50-75% less than when utilizing the more traditional model of charging a percentage of the hired worker’s salary.
  • As a rule, the agency does not provide guarantees for the recruited employee.
  • Advertising and testing the candidate’s skills are normally paid separately.
  • The charterer is supplied with the recruiter’s timesheet along with the invoice.
  • The recruiting organization receives an hourly rate for all the work done by the recruiter from when the contract is signed to when the job is offered and accepted.

What are the benefits of an hourly contract?

Hourly billed recruiting

First of all, there is an obvious advantage for the hiring firm as charging a fixed hourly rate, as well as a precise definition of the scope of the work ahead, ensures that you are paid not only for all the work you have completed as it was specified in the hourly billed recruitment agreement but also for all additional services, not mentioned in the hourly based recruitment contract, you will provide if necessary in the process of working on the customer’s order.

However, such an hourly recruiting model also has substantial advantages for the recruitment company’s clients. This hourly recruitment process brings them tempting profits, too:

  • The details of the upcoming project are agreed in advance.
  • During the project, each party fulfills its part of the agreement.
  • All the services not indicated in the convention are considered and paid separately as overtime.
  • The clients can prioritize some particular positions.
  • They can focus on a specific stage of the recruiting process, like general counseling, creating a job ad, drafting interview questions, holding the screening or the interview, etc.
  • They pay only for the number of hours spent on the execution of their order.

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Are there any drawbacks to applying this paying model?

Hourly recruiting

I would be glad to write that there are none, but objectivity, as they say, is more valuable. Like other payment methods, this one has some weaknesses, which in no way detract from its visible merits:

  • Recruiters outsourced may have low motivation to complete the program quickly, as they will be paid per hour.
  • In the long run, such as when looking for a rare talent, this way of remuneration may become costly.
  • Also, this model may be expensive if the charterer needs to hire many employees because it may take a long time.
  • When choosing such a treaty, it often does not include a clause about a guarantee of employment.

In conclusion

Hourly recruiting services

From all of the above, we can easily draw certain conclusions: the technique of hourly fee for hiring services has clear strengths and deserves close attention from your company when you decide which mode of paying will be the most profitable for you. A short list of minor flaws does not outweigh the significant quantity of hourly hiring pluses.

And if you still have unanswered questions about this model, our company is always at your service.