Business
Recruitment Business Models
The commercial structures that define how staffing agencies, RPO providers, and MSPs operate — from contingency and retained search to enterprise outsourcing.
40 terms
Bench Staffing
Recruitment Business ModelsBench staffing is a model where a staffing firm keeps a pool of pre-screened, onboarded workers between assignments,…
Body Shopping
Recruitment Business ModelsBody shopping is a model where a staffing or consulting firm recruits workers and places them with clients as…
Co-Employment
Recruitment Business ModelsCo-employment is a legal arrangement where two parties — typically a staffing agency and its client — share employer…
Contingency Recruitment
Recruitment Business ModelsContingency recruitment is a fee model where a staffing agency only receives payment if a candidate they submitted is…
Contract-to-Hire
Recruitment Business ModelsContract-to-hire is a staffing arrangement where a worker starts on a temporary contract with the expectation that they…
Direct Hire
Recruitment Business ModelsDirect hire is a recruiting model where a staffing agency sources, screens, and places candidates directly as permanent…
Employer of Record(EOR)
Recruitment Business ModelsAn employer of record (EOR) is a third-party organisation that legally employs workers on behalf of a client company,…
Engagement Fee
Recruitment Business ModelsAn engagement fee is an upfront, non-refundable payment an employer makes at the start of a retained search, committing…
Enterprise RPO
Recruitment Business ModelsEnterprise RPO is a full-function recruitment outsourcing model where an organisation transfers its entire permanent…
Executive Search
Recruitment Business ModelsExecutive search, also known as retained search or headhunting, is a specialist recruiting service for senior…
Finder's Fee
Recruitment Business ModelsA finder's fee is a payment to a person or firm that introduces a candidate who is hired, set as a flat sum or a…
Headhunting
Recruitment Business ModelsHeadhunting is directly approaching employed professionals who are not job hunting, with the aim of recruiting them for…
Hybrid RPO
Recruitment Business ModelsHybrid RPO is a recruitment outsourcing model that blends in-house talent acquisition capacity with external RPO…
Labour Arbitrage
Recruitment Business ModelsLabour arbitrage is cutting wage costs by moving roles to a lower-cost geography or worker classification, which…
Managed Service Provider(MSP)
Recruitment Business ModelsA managed service provider (MSP) in recruitment manages a company's contingent workforce programme — including…
Managed Services Staffing
Recruitment Business ModelsManaged services staffing hands operational management of a contingent workforce to a managed service provider,…
Master Service Agreement
Recruitment Business ModelsA master service agreement (MSA) is one overarching contract setting the commercial terms for every placement or…
Master Vendor
Recruitment Business ModelsA master vendor is a single staffing agency appointed to manage all of a client's contingent hiring, filling most roles…
Neutral Vendor
Recruitment Business ModelsA neutral vendor is an MSP that manages a client's contingent workforce programme without supplying workers directly —…
Outsourcing
Recruitment Business ModelsOutsourcing is contracting a function or process to an external provider instead of internal employees, from a single…
Payrolling
Recruitment Business ModelsPayrolling is where an agency employs a worker the client already found, running payroll, tax, and benefits while the…
Payrolling Services
Recruitment Business ModelsPayrolling services let a company use contractors or temporary staff while a third party acts as employer, handling tax…
Permanent Placement
Recruitment Business ModelsPermanent placement is when a recruiter finds a candidate who joins the client as a direct, full-time employee, with…
Placement Fee
Recruitment Business ModelsA placement fee is the payment an agency receives when a candidate it sourced is hired by a client, the main way…
Professional Employer Organisation
Recruitment Business ModelsA professional employer organisation (PEO) is a firm that co-employs a client's workers and handles payroll, benefits,…
Professional Employer Organization(PEO)
Recruitment Business ModelsA professional employer organization (PEO) enters a co-employment relationship with a client company, taking on…
Project RPO
Recruitment Business ModelsProject RPO is a time-limited recruitment outsourcing engagement where an external provider manages hiring for a…
Project-Based Staffing
Recruitment Business ModelsProject-based staffing is an engagement where a client buys a defined outcome from a team over a fixed period, not a…
Recruitment Process Outsourcing(RPO)
Recruitment Business ModelsRecruitment process outsourcing (RPO) is a model where a client transfers all or part of its permanent recruitment…
SOW Staffing(SOW)
Recruitment Business ModelsSOW (Statement of Work) staffing refers to engagements where a supplier is contracted to deliver a defined output or…
Staff Augmentation
Recruitment Business ModelsStaff augmentation supplements a permanent workforce with external contractors or agency temps who work under client…
Staffing Agency
Recruitment Business ModelsA staffing agency is a business that recruits, screens, and supplies workers to client organisations on a temporary,…
Statement of Work
Recruitment Business ModelsA statement of work (SOW) is a contract defining a project's scope, deliverables, timeline and payment terms, used for…
Subcontracting
Recruitment Business ModelsSubcontracting is when a prime contractor engages other suppliers to fulfil part of a client contract while remaining…
Success Fee
Recruitment Business ModelsA success fee is a payment triggered only by a defined outcome, typically a candidate starting a role, usually a…
The Bench
Recruitment Business ModelsThe bench is the pool of employed consultants or contractors between client engagements, whom the agency keeps on…
Total Talent Management(TTM)
Recruitment Business ModelsTotal talent management (TTM) is a workforce strategy that plans and manages permanent, contingent, and freelance…
Vendor Neutral
Recruitment Business ModelsVendor neutral is a staffing program model where no agency has preferred or exclusive status and all suppliers compete…
Vendor on Premise
Recruitment Business ModelsVendor on premise (VOP) is a staffing model where one agency places a dedicated recruiter or team at the client's…
Vendor on Premises
Recruitment Business ModelsVendor on premises (VOP) is a staffing model where an agency embeds a dedicated on-site team at the client's facility…