What is the difference between contract and permanent recruitment?
You have decided recruitment is the way forward, good choice! The next step is understanding the different types of recruitment.
Both contract and permanent recruitment involve looking for candidates, networking and finding new clients. However, the two roles have a few differences depending on a client’s requirements.
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Contract and Permanent Recruitment Comparison
| Feature | Contract Recruitment | Permanent Recruitment |
|---|---|---|
| Duration of Employment | Fixed-term, ranging from a few weeks to several years | Indefinite period, with the expectation of long-term employment |
| Recruitment Focus | Short-term projects and immediate needs | Long-term organisational growth and stability |
| Candidate Pool | Specialists and experts seeking flexibility and variety | Individuals seeking stability and career progression |
| Compensation | Often higher hourly or daily rates due to the short-term nature and expertise required | Annual salary with potential benefits (e.g., healthcare, retirement plans) |
| Benefits | Flexibility, higher potential earnings, varied projects | Job security, career development, company benefits |
| Commission Structure | Based on the contractor’s day rate, incentivising multiple short-term placements | Often a percentage of the candidate’s annual salary, rewarding long-term successful placements |
| Client Relationship | Dynamic, with frequent changes to meet project needs | Long-term, focusing on understanding and fulfilling organisational culture and goals |
| Recruiter Role | Fast-paced, focusing on immediate client needs and quick placements | Strategic, aiming to understand deep organisational needs and candidate career goals |
| Career Path | Opportunities for rapid movement and diversification of experience | Potential for deep industry specialisation and long-term client relationships |
Contract recruitment
When businesses and organisations implement, upgrade or make changes to their software systems, they often hire specialists for the project duration. These specialists are often hired on a ‘contract’ basis, usually for weeks or months at a time.
These ‘contractors’ are experienced professionals that are paid an hourly or daily rate. Contractors working on very large projects can find their placement extended, and in some cases, contractors can be on-site for a year or two.
As a recruiter specialised in hiring contract consultants, you earn a commission based on the day rate of the contractors you have placed with clients. As a result, the more contractors you have working on placements you have made, the more your monthly commission is.
What is the average day like for a contract recruiter?
- Time is precious. You’ll use our candidate database and your network to find candidates with the ideal skills who can start working at short notice.
- There will be instances in which some niche skills are required, the client has particular requirements or the job is in a new or difficult location. You’ll use your network to find the right people for the role. There is always someone who knows someone.
- Once your candidate passes the interview and signs the contract, you will communicate regularly with the client and the contractor to ensure that both parties are satisfied.
You will build rapport with current and potential clients, find out about new opportunities, follow hot leads and get new business.
- Forward-thinking is the key. Keeping the database up to date and speaking regularly with potential candidates will keep you ahead of the game. You will already know who you will send to the next job before getting the client’s request.
Permanent recruitment
When a client requests a candidate for a permanent role, the goal is to find the dream candidate whose ideal role is the position you are trying to fill. Once through the interview process, the successful candidate will sign an indefinite contract based on an annual salary.
One of the rewards of working on the Permanent Team is the feeling of success when you match the ideal candidate and employer together. Your commission is based on the placed candidates’ salary and the rates you have agreed with the client.
What is a day like in the permanent team?
- You’ll build rapport with current and potential clients. Likeability and resilience are very important to get new business.
- You’ll be on the lookout for candidates who match specific client’s requirements -such as location, skills and budget- and who have availability to start when required. Listening to the candidates and understanding their motivations and needs is crucial to understand their expectations.
- You’ll manage the client to align their expectations to the budget and provide solutions.
- Communicating effectively is key to be able to demonstrate to both your candidate and client that they are right for each other.
- There will be competition. You’ll get the best candidates and pitch them to your clients before other agencies do. On the other hand, candidates might be considering different job offers; having the best opportunity to suit them can be challenging.
The world of recruitment is fast-paced but very fulfilling. There are many benefits to being a 360 recruiter, like getting to speak with lots of people from different backgrounds and building relationships with some of the IT industry’s most talented candidates and biggest businesses across the globe. It is a very rewarding career that gives you the opportunity to make a positive impact in other people’s lives by finding the job they are looking for or even the one they always dreamed of.
Ready to start your career in recruitment? Check out our latest vacancies or get in touch with our recruitment team. Looking for tips? Check out our article on how to start your career in recruitment and stay up to date with the latest insights on our blog page.
