How to Find the Right Recruiter to Work with During Your Job Search Part 2: The Two Main Types of Recruiters Out There

There are basically two types of recruiters. You need to know the difference between them because the motivations behind each type are quite different. Who you pick may depend on where you are in your career; typically junior/entry level, (0-3 years of work experience) mid-level, (5-7 years of work experience) senior level (7-12 years of experience) or executive level (12 + years of work experience.)

The first type of recruiter is the Internal Recruiter. An Internal Recruiter works directly for the organization with the job opening. They usually have a title like Corporate Recruiter or Talent Acquisition. In smaller companies, HR will fulfill this function. They are paid a salary by the company to find candidates and do not work on commission although they may receive some sort of bonus based on their results.

The second type of recruiter is the External/3rd Party) Recruiter. External Recruiters work for a Staffing Agency. To add another layer here, there are also two main types of staffing agencies: Contingent Recruitment firms and Retained Search firms. External/3rd Party Recruiters do not work directly for the organization BUT the organization is relying on the external recruiter to find them candidates for an open role. External recruiters typically receive generous commissions from the client or company to find them candidates they cannot find or go after themselves.

A major difference between these two types of recruiting firms is when or if they get paid. Contingent Recruiting firms only get paid if the candidate found by them is hired by the company for a permanent role and are usually used to fill roles at or below director level.  Retained Search firms are used almost exclusively to find senior director level, executive leadership, C-Suite,  and board member candidates. They get paid for their process of finding and screening candidates but not necessarily their results.  This means that the Retained Search firm gets paid even if the candidate doesn’t accept the job offer.  

If you’ve been contacted by a staffing agency for a more junior role, the staffing agency is typically a Contingent Recruitment firm. Because they only get paid if their client hires you, Contingent Recruiters may ghost you if they no longer have a need for you (because this is a transaction and not a relationship) unless you are right in their wheelhouse, e.g. a functional recruiter who specializes in placing Accounting and Finance candidates from any industry. The best functional recruiters who work for Contingent staffing agencies practice playing the long game. These people are great relationship builders versus transactional recruiters who are more likely to ghost you. For the most senior roles, companies usually hire Retained Search firms. To make it more confusing, someone with an Executive Search title may work for a Contingent firm or one that has some Contingent and some Retained roles.

Now that you know the different types of recruiters, their motivations, and how, when, or if they get paid, it’s up to you. If you like or trust a particular recruiter, then that’s the recruiter you should try to get to know.

When I worked for Contingent Search agencies and even after I opened my own firm, I always told candidates (job seekers) that even if I didn’t place them this time, I might place them down the line so I asked for permission to keep in touch with them periodically. And I did. I also gave them permission to call me in the future if they needed a sounding board when they were trying to decide whether to move forward with the hiring process or accept a job offer with a company even if the company was not one of my clients. Why? Because I’ve always believed in playing the long game. My reward: a lot of the candidates (job seekers) I didn't place the first time became paying clients of mine when they moved to new organizations.

Need more assistance? Reach out to me at melanie@melanierecruits.com or on LinkedIn.