Contingent Staffing vs Retained Staffing: Which One Should You Use?

When looking into staffing services, the two most common types are Contingent and Retained staffing. But what do they really mean? And more importantly, which one is right for your business? Here’s a straightforward explanation to help you make a smart and informed decision.

The key differences are the tactics used to find workers and how you’ll pay. One isn’t better than the other but both suit different needs.

What is contingent staffing?

Simply put, contingent staffing is the “try before you buy” method of staffing. With contingent staffing, agencies won’t charge you until they successfully place a worker. Making it great for companies who have short term openings, or that just want to test the waters using a staffing firm.

Key features of contingent staffing:

• No Upfront Cost: You only pay when a candidate is successfully placed.
• Employer of Record: Workers are employed and paid by the staffing agency
• Low commitment: Workers can be swapped or scaled quickly

When is contingent staffing useful?

Contingent staffing is used for roles that are higher in volume or easier to fill. Think general labor and temporary management roles.

It works best in fields like manufacturing, warehouse/logistics, administrative support, customer service, and hospitality. Due to the volume and flexible skill sets that usually come with these roles.

It’s also perfect for companies with a tight budget or looking to hire urgently. They’re free to use until your position is filled and most will offer a 30 day guarantee on the candidates they provide.

What is retained staffing?

Retained staffing, on the other hand, is a more specialized form of hiring. Here, companies will pay agencies upfront to help them fill their roles. It’s a lot more personalized and in depth, used for hiring executive level positions.

Retained agencies will partner with you through the entire hiring process, from creating the job description to advising you how to advertise the job. They’ll typically target passive candidates who are qualified but are currently in a job and not actively searching

Key features of retained staffing:

• Upfront Cost: Retained agencies will charge you upfront but will be more committed to filling your position.
• Personalized Service: Due to the focus on executive roles, recruiters will invest time in understanding your company culture and specific needs.
• A Different Candidate Pool: Recruiters will often target passive candidates, ones who are already employed in similar industries.

Who typically uses retained staffing?

If you’re looking for specialized, high-level roles, you’ll want to use retained staffing. These are best for filling roles that are critical to the company, usually financially, where you want to minimize the risk of a hiring mistake.

Retained staffing is also used for roles that are confidential and not on public job boards. Since retained recruiters will chase passive candidates, it makes it a lot easier to keep the job opening concealed.

Unlock your staffing potential.

At SlingShot Connections we offer contingent staffing that perfectly aligns with your business goals.

Our contingent staffing services are designed for today’s fast-moving business world. We connect you with a wide range of skilled professionals who are ready to jump in and make an impact right away. And the best part? You only pay once we match you with the right candidate.

Let us take the stress out of hiring, so you can focus on what you do best – growing your business.