On the surface, recruitment is very straightforward. You put out a job offer, collect applications, sort them through, host interviews, and make the call. However, employers and HR managers know the underlying challenges of hiring talents across industries.
The primary source of confusion is usually the recruitment model. Do you hire full-time employees or contractors? Then there are different sub-models in between.
At the end of the day, the “best” recruitment model for your business depends on your requirements. The goal should always be to fit the needs of the moment rather than following a template blindly.
Depending on what industry you operate in, your hiring needs will vary. To help you narrow down the options, let us list the top recruitment models with insights into which industries they’re best suited for. By the time you’re done with this post, you’ll know exactly what model you should opt for.
In recent times, contract hires have become very popular among organizations. Most people don’t want to enter long-term contracts anymore. At the same time, the talent needs of corporations are changing rapidly. So, the contract recruitment model works out in favor of both parties.
This kind of recruitment is typically temporary. The employee enjoys the freedom of working on their own schedule. It’s the perfect model for roles that are difficult to fill permanently.
For example, if you need direct hire for nurses in the US, a contractual model would be ideal. The ongoing shortage of RNs since the Coronavirus pandemic has sent the demand through the roof. Most nurses now work on a per-diem or contractual basis.
Of course, it’s a “contract” we’re talking about and contracts can be manipulated to fit the needs of the organization. The same model applies to roles that need subject matter experts for a short term.
This is also the choice of recruitment model for remote workers as it ensures the freedom of work across the globe.
As the name suggests, permanent recruitment starts with an indefinite contract between an organization and a talent, usually at a fixed salary. This is the most common recruitment model all over the world. Businesses and organizations that need long-term roles filled with loyal team members apply this model in their policies.
While permanent recruitments don’t have any set duration, there is typically a minimum period of employment that employees must adhere to. If the condition is breached, the employer has the right to revoke some of the promised benefits such as extended health coverage, payment for unused vacation, and severance packages.
Generally perfect for leadership roles, executive search is a commonly used recruitment model. The said roles include the C-suite executives like CEO, COO, CFO, CIO, and HRD. The process is very different from contract hires or permanent hires as the roles require specialized skills to perform optimally.
The reason this recruitment model is called executive “search” is that organizations have to search for these talents. Compared to any other category of talent, the number of C-suite candidates is dramatically low. This makes hiring executives a critical and time-consuming process.
Thankfully, there are executive search agencies. These industry-specific agencies work with businesses closely to understand their needs before reaching out to the pool of high-profile talents.
This recruitment model is very goal-driven. Organizations hire this level of talent to achieve certain business goals. The duration of the contract also depends on the goals.
Contract to Hire
This is a hybrid recruitment model that has served many industries in recent times. As the name suggests, an employee starts on a contractual basis with a promise to become a full-timer when the time is right.
This is a great model for businesses struggling to find the right match to fit a particular role. This model has become quite popular in recent times and for valid reasons. Permanent recruitment comes with legal obligations for employers. The untimely demise of the contract can result in a negative outcome for the company.
When utilizing this recruitment model, the employers get to evaluate the employee’s competency before handing over more responsibilities. The contracts typically start as short-term. If the company’s business needs require full-time staff, the contractor gets priority. Once the duration is over, both parties can decide how to proceed through dialogue.
It’s a unique recruitment model that deals with full-blown teams instead of individuals. It’s best suited for projects that require diverse skill sets to perform various tasks.
Hiring individual team members can turn out hectic for organizations, especially if the project is on a deadline. Instead, finding a team ready to deliver is a wiser choice.
For example, if you own a marketing agency and one of your clients needs a website launched within the next 30 days, you don’t have enough time to hire back-end and front-end developers, UX designers, database engineers, etc.
The team leasing model comes to the rescue by allowing you to hire ready-made teams already possessing all the skills you need for the project. You can find leasing agencies that connect businesses to such teams on demand. The agencies also take care of finer details like payroll, taxes, and other administrative tasks.
Statement of Work
Statement of Work (SoW) is a relatively newer recruitment model that comes with an assurance of work quality. The guarantee of receiving high-quality deliverables has made this model popular in recent months. However, the operations costs for this model are much higher compared to the others.
Rather than going off on large-scale talent hunts, the SoW model allows recruiters to hire specific individuals who are best fit for the role. This is usually a per-project-based recruitment model where the employee gets paid after delivering the work in the promised state.
The model is surely a breath of fresh air as it discards the typical hiring dilemma. Instead of figuring out the optimal hourly salary for employees, organizations can set fixed budgets for projects and hire individuals/teams that offer the best value for money and guaranteed results.