You only earn when you place. That’s the deal with contingency recruiting.
But top recruiters don’t just hustle. Instead, they work with precision, protect their time with solid contracts, and know exactly when to walk away.
This playbook breaks it all down. Strategies that close. Clauses that save you. And 9 contract templates you can actually use.
Let’s sharpen your contingency recruitment game.
What is contingency recruiting?
Contingency recruiting is a “no-win, no-fee” hiring model where recruiters get paid only if they successfully place a candidate.
There’s no upfront cost or exclusive agreement. Clients owe nothing unless a hire is made.
This approach allows recruiters to work with multiple companies simultaneously, but it also means competing against others for the same roles.
To succeed, you need to move quickly, find the right fit, and close the deal before someone else does.
How does contingency recruitment work?
Step 1: Create a contingency recruiting contract
The first step is locking down a clear agreement with your client.
A contingency recruiting contract lays out the terms of the candidate search. It details terms like when you’ll get paid, what roles you’re working on, and what happens if things change along the way.
It acts as your safety net, protecting your time, effort, and revenue while ensuring both sides are aligned from day one.
You can customize the contract based on the deal, but a few key details should always be covered, like:
a. Scope of the role
In contingency recruitment, urgency is key. To prevent delays, the agreement should specify the job title, responsibilities, salary range, and the required qualifications of the candidate.
It will ensure you aren’t chasing a moving target and avoid any “this isn’t what we wanted” situations later.
b. Payment clause
Contingency recruiters typically charge a fee of 15% to 25% of the candidate’s first-year salary, depending on the industry and the candidate’s seniority.
However, this can vary, and you can set your own payment structure. Ensure that you safeguard yourself by agreeing on details regarding payment delays and other conditions.
Bonus tip: The industry standard for contingency recruiting firms is to base their payment calculations from when the candidate starts working.
But if you want to ensure a quicker payout, you can set the calculations from the day of offer acceptance.
c. Guarantee or rebate clause
Even after your candidate starts working, your job is not completely done.
It’s smart to plan for unexpected situations by adding a rebate clause to your agreement.
This clause clearly explains what happens if the candidate leaves within 60 or 90 days, whether you’ll offer a free replacement, a partial refund, or credit toward a future hire.
You can avoid any client misunderstandings by clearly outlining these details before the deal. This will truly showcase your work ethic and help establish a strong brand image for your recruiting firm.
Step 2: Find the right candidate
Once you are done finalizing the contingency recruitment contract, it’s time to start searching for the perfect match.
To make the hiring process easier, it is better to maintain candidate databases from various hiring drives.
You can also conduct an extensive search for candidates through advertising and an applicant tracking system (ATS).
Tools like Recruit CRM accelerate this process even further by combining advanced search filters, automated pipeline tracking, and built-in email outreach capabilities. This ensures that you spend less time toggling between platforms and more time placing candidates.
Step 3: Place the perfect hire and close the deal
As a contingency recruiter, your job doesn’t end right after finding the perfect match for the role.
After handing over the selected candidates to the client, you must ensure that the ideal one is approved and successfully placed in their desired job.
Monitor the performance and attendance of the hire for the first 90 days to check that they are committed to the job role and not job-hopping.
Once the 90-day period is over, you can close the deal and receive payment from the client for the successful placement.
9 free contingency recruiting contract templates
1. Standard contingency recruiting agreement
Contingency recruiting agreement: This Agreement is made on [Date], between [Recruiting Agency Name] (“Recruiter”) and [Client Company Name] (“Client”).
Services: The recruiter will source and present candidates for the specified position (s) according to the criteria outlined by the client for the job role.
Fees: Client agrees to pay X% of the candidate’s first-year base salary, payable within 30 days of the candidate’s start date.
Guarantee: If the candidate leaves within 90 days, the Recruiter will provide a one-time free replacement.
Confidentiality: Both parties agree to maintain confidentiality regarding all candidate and client information.
Termination: Either party may terminate this Agreement at any time with written notice.
2. Exclusive contingency agreement
Exclusive contingency recruiting agreement: Dated [Date], between [Recruiting Agency] and [Client Company].
Exclusivity: Client agrees not to engage any other external recruiters for [Position(s)] during this Agreement’s term (X days).
Fees and terms: Client agrees to pay [X]% of the hired candidate’s annual base salary upon successful placement.
Replacement guarantee: If the hire leaves within 90 days, a replacement search will be conducted at no additional or hidden cost.
Confidentiality & termination: Standard confidentiality applies. The agreement can be terminated by written notice, provided a 7-day lead time is given.
3. Contingency agreement with retainer option
Contingency to the retainer agreement: Effective [Date], between [Recruiter] and [Client].
Terms: Initially, search services are contingency-based. Upon the successful hiring of the first cohort, the deal will be converted to a retainer agreement for any further hiring drives signed with the Client. This will also include the recurring vacancies that’ll arise for the first contingency job role.
Retainer conversion: After the first contingency hire, a retainer fee of $X per month will be applied to all hiring deals made after 60 days, to support continued sourcing efforts.
Placement fee: X% of the candidate’s annual salary, minus any paid retainer amounts.
Replacement policy: Free replacement within [90] days of the hire, only for the contingency hire. Replacement will also be provided for retainer hires, but a fee agreed upon by both the Client and the recruiting firm will be charged.
4. Contingency contract with candidate ownership clause
Candidate ownership agreement: Dated [Date] between [Recruiter] and [Client].
Candidate ownership: If the Client interviews a candidate presented by the Recruiter. The recruiter retains ownership for 12 months. If hired during this period, the full placement fee applies.
Placement fee: X% of the candidate’s annual base salary.
Payment terms: Payable within 30 days of the candidate’s start.
5. Tiered fee contingency agreement
Tiered fee contingency agreement: Effective [Date], by [Recruiting Agency] and [Client].
Tiered fees:
- Hire within 30 days: 18% fee
- Hire within 31–60 days: 20% fee
- Hire after 60 days: 22% fee
Guarantee: Replacement is provided if the hire leaves within 90 days, with no additional or hidden costs.
Payment terms: Invoice due within 30 days of start date.
6. Multiple role contingency contract
Multi-Role contingency recruiting agreement: Between [Recruiter] and [Client], dated [Date].
Scope: The recruiter will work on multiple roles listed in Exhibit A.
Fee structure: X% per hire. A 2% discount will be applied per placement when three or more roles are filled.
Guarantee: Replacement within 90 days if the candidate leaves the position.
7. Contingency recruiting contract with replacement guarantee
Contingency agreement with replacement guarantee: Made [Date] between [Recruiter] and [Client].
Services: Recruiter presents candidates for designated openings.
Fees: X% of the first-year salary, payable upon acceptance of the offer.
Replacement guarantee: If the candidate resigns or is terminated within 90 days, the Recruiter will replace them at no additional fee.
8. Contingency agreement for contract-to-hire roles
Contract-to-hire contingency recruiting agreement: Dated [Date], between [Recruiter] and [Client].
Initial contract placement: The recruiter will source candidates for temporary or contract-to-hire roles.
Fees:
- Contract hourly markup: X%
- If hired full-time within 6 months, a placement fee of X% of annual salary applies.
Guarantee: No guarantee for contract placements; the guarantee applies only to full-time conversions within 30 days.
9. Performance milestone contingency contract
Performance-based contingency agreement: Effective [Date], between [Recruiting Agency] and [Client].
Milestones:
- Shortlist submitted within 10 days = $X]bonus
- Placement within 30 days = X% discount on fee
Standard placement fee: X% of annual base salary.
Replacement policy: Standard 90-day free replacement offered.
6 secret tips to help you become a successful contingency recruiter
1. Qualify roles before signing the contract
In contingency recruiting, time is money. Every role you take on should be worth the effort you put into it.
That’s why qualifying a role before signing the contract is crucial. It helps you avoid ghosting clients, unclear mandates, and deals that never go anywhere.
But what does “qualifying a role” actually mean? It’s about digging deeper to assess whether the role is real, urgent, and fillable.
Once you’ve gathered this intel, only proceed if the role checks these boxes:
- There’s clarity on compensation and expectations.
- Regular feedback will be provided.
- There’s an urgency to close the deal.
- You can influence or interact with decision-makers.
You must be upfront and transparent about these parameters. This will help you avoid any red flags and focus on deals that are truly worth your time.
2. Move fast, but not at the cost of quality.
You need to hire fast, but that doesn’t mean you’ll place anyone you come across.
Here’s a quick 5-step roadmap for finding suitable candidates fast:
a. Use multiple sourcing channels
Don’t rely only on job portals to find the best talent.
To hire the best match, you need to upgrade your sourcing strategies and find someone who possesses the necessary skills and is an excellent cultural fit for the company.
Enhance your candidate search by utilizing dedicated databases and leveraging social media.
b. Build a pre-qualified talent pipeline
Keep searching for candidates proactively instead of relying on contingency deals to arrive.
Create a pre-qualified talent pipeline, segmented by role, experience, and location. Once you initiate a deal, use tags and filters to generate a list of eligible matches quickly.
You can use softwares like Recruit CRM to maintain dynamic talent pools. Its advanced features let you create custom fields and smart filters with real-time updates.
c. Use advanced filters to narrow your list
Automate your screening process and use smart filters to target your specific requirements..
Combine multiple filters like past employers, skills, or availability to surface the best matches instantly.
Choose software like Recruit CRM to perform all your screening tasks in one interface; this will reduce your time toggling between different softwares.
3. Communicate like a consultant
Clients invest in contingency recruiting deals only when they see the potential of finding a perfect match. However, they are often unaware of the details of the hiring market and the trends that can influence the placement choices.
That’s why, as a recruiter, your job isn’t just finding suitable resumes. You need to be a strategic advisor as well.
Make sure to communicate with your clients about market trends like :
a. Which industries are facing layoffs?
Industries like tech, fintech, and media have seen consistent layoffs due to cost-cutting and shifting market conditions. Clients need to be aware of the trends and months when layoff mainly occurs, because during this time, a large number of skilled candidates are available in the market.
b. Do the candidates prefer WFH or WFO roles?
Most candidates still lean toward remote or hybrid options. Especially in tech, marketing, and design roles, the ability to choose the work location is one of the main determining factors that impact offer acceptance rates.
c. What are the common reasons for candidate drop-offs?
Candidates today expect a streamlined and respectful experience. Ghosting them ruins the brand image and reduces the application rates.
Slow communication, unclear interview processes, and delayed feedback often increase drop-offs. It is essential to elevate the candidate experience even when they’re not selected.
Being transparent about these ensures that the client has no unrealistic expectations from the hiring process and doesn’t terminate the deal based on unachievable goals.
4. Track and follow up on successful placements
Your job isn’t done once a candidate signs the offer.
In contingency recruitment, what happens after placement can make or break your brand image and revenue.
Here’s a way to improve your post-placement follow-ups :
a. Follow up on the candidate in the first 30 days
The first 30–90 days after a placement are crucial. This is when culture shock, misaligned expectations, or weak onboarding can make the candidate quit.
To ensure that no such emergencies occur, keep in touch with the candidate and ask open-ended questions like:
- How’s the onboarding going?
- Is the role shaping up the way you expected?
- Is the payment cycle aligning with what was discussed during offer acceptance?
b. In case of an emergency, take a strategic lead
If a candidate is considering quitting, contact them and determine if any agreements can be made.
Offer to mediate a conversation between the client and the candidate. Suggest alternatives like an internal transfer or extended probation time.
Work out the possibilities of letting the candidate choose their work location.
This will also ensure you improve the candidate experience and build a positive brand image for your contingency recruitment firm.
5. Learn to spot the red flags
In contingency recruiting, time is your currency. Work only with those clients who value and respect that.
If a client is ghosting or stalling, they are not serious about the deal and are just fishing for resumes. Avoid such deals and save your time.
Instead, focus on clients who have genuine hiring intent and are eager to collaborate seriously with contingency recruiters.
To maximize your efficiency and success rate, stop the red flags like :
- Delayed Responses: Consistent delays in communication can indicate a lack of urgency or interest.
- Vague Job Descriptions: An unclear or constantly changing job description may suggest internal confusion or a lack of commitment to hiring.
- Multiple Agencies Involved: While not always a red flag, if a client is working with numerous agencies without exclusivity, it may reduce your chances of making a placement.
- Unwillingness to Engage in Strategy Discussions: A client who avoids conversations about the hiring strategy, market conditions, or candidate profiles may not value your expertise.
- Inconsistency in Engagement: Irregular communication and an unstructured hiring process indicate a client’s lack of interest and seriousness for the placement drive.
Being a contingency recruiter is all about hustling and making sound judgments. The faster you spot a real opportunity and act on it with focus, the more placements you’ll lock in.
Why Recruit CRM is built for contingency recruiters?
Let’s be real. Recruiters love Recruit CRM.
According to Jeroen Mossinkoff, a recruitment consultant at Farrow + Dutch, Recruit CRM is the “go-to tool for recruitment agencies”.
It doesn’t matter whether you work with retainer clients or sign only contingency deals. Recruit CRM has a solution to all your hiring woes.
From resume parsing, filtering candidates, to boosting your outreach strategy. It will help you in every step of your placement drives.
The best part? Everything is available in a single interface.
Which means no more being a ninja and toggling between multiple softwares.
Want to learn how Recruit CRM can boost your contingency recruiting?
Here’s how :
1. No-code Workflow Automation
As a contingency recruiter, you’ll often work on high-volume roles with tight timelines. This will leave you little room to toggle between multiple integrations and complete all your admin work.
But with Recruit CRM’s no-code recruitment automation, you can instantly automate tasks like follow-ups, stage updates, and interview scheduling.
The best part?
You don’t need to be a coding ninja to set up these automated systems.
Just set a trigger, and Recruit CRM will take care of the rest. This way, you’ll save hours daily and stay laser-focused on finding the best match and closing roles faster.
2. AI-powered resume parsing
You cannot afford to waste time sifting through resumes manually for time-sensitive contingency deals.
Instead, utilize the AI-powered resume parsing system of Reecruit CRM. It quickly extracts and organizes candidate data into your database. Making it easier for you to filter them based on specific requirements.
This means no more copy-pasting data into Excel sheets and manually going through pages of resumes and cover letters. Instead, you’ll have dedicated databases of suitable candidate profiles ready to be categorized according to any filters you need.
That’s why Eric calls Recruit CRM “a surprise worth every penny”!
3. Gen AI integration
A strong job description is the most effective way to attract candidates quickly.
However, writing job descriptions and emails from scratch consumes a contingency recruiter’s time.
But what if you had an assistant who could write stellar job descriptions and emails for you in a few minutes? Sounds too good to be true?
Well, with Recruit CRM’s built-in Gen AI integration, you can generate JD drafts, email templates, and candidate notes in seconds! This removes all your tedious typing tasks and ensures you stay focused on filling roles, not formatting content.
That’s why Vitaliy Sokolov feels the only con of Recruit CRM is that it “wasn’t around five years ago”!
4. Advanced KPI tracking system
You need to track the right KPIs to succeed as a contingency recruiter.
With Recruit CRM’s activity logs, you get to auto-record every call, email, note, and status update, which means no more guesswork or digging through inboxes to figure out who did what. This is beneficial for transactional deals where you must keep track of every hiring update and client request.
The deal pipeline analytics helps you visualize how candidates move through your hiring funnel. This helps to see the movement from application submission to placement.
This lets you identify where the deal slows down or candidates drop off and fix it before it’s too late.
You can even build your custom dashboards to track the KPIs that matter most to your team. Whether it’s weekly interviews, recruiter response time, or client submissions. Recruit CRM lets you do it all!
Frequently asked questions
1. How long is the contingency period?
The contingency period typically lasts between 1 and 2 months.
This is again why recruiters are so hurried to complete their tasks before the deadline.
2. How many positions are required to be filled in one contingency hiring drive?
Contingency recruitment is a high-volume transaction business. You will search for multiple candidates to fill many positions.
Typically, there are around 20-25 positions available for each hiring drive.
3. What are the benefits of contingency recruitment?
Depending on the deal type and contingency fee, the benefits of this recruitment method can vary. But the general benefits of contingency deals are :
- Faster deal closing time: As there are no retainer terms, you can close the deal fast and sign another. This streamlines the hiring process and reduces the overall turnaround time. Making sure that you’re not stuck with the never-ending demands of clients.
- High earning potential: You can work with multiple clients as a contingency recruiter. Moreover, with faster turnover time, you can sign up multiple deals in each quarter, thus increasing your revenue generation.
- Access to a broader talent pool: To reduce the hiring time, contingency recruiters maintain large candidate databases and source from multiple channels. This gives you access to a broader talent pool that you can utilize for any hiring drives in the future.
- Improved Candidate experience: As the focus is on closing the deal fast. The placement process is streamlined and sped up. It improves the candidate experience as well and creates a positive employer brand image.
4. Are companies willing to work with contingency recruiters?
Yes, companies across different sectors hire and work with contingency recruiting agencies.
As contingency recruiters are very fast-paced and tend to complete tasks quickly than others, they are often preferred over other recruitment firms.
Moreover, contingency deals ensure that companies won’t incur a loss if recruiters fail to find a suitable candidate. Therefore, there is an excellent demand for contingency recruiters in the market.
