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What Is a Contingency Search Agreement

When it comes to recruiting for a new position, businesses typically have two options: conduct the search themselves or enlist the help of a staffing agency. If you choose the latter, you may be presented with a contingency search agreement. But what is a contingency search agreement, exactly?

In the simplest terms, a contingency search agreement is a contract between a business and a staffing agency. Under this agreement, the staffing agency only receives payment if they successfully place a candidate in the position being recruited for. In other words, the agency`s fee is contingent on their ability to make a placement. If they don`t succeed, they don`t get paid.

This type of agreement is beneficial for businesses because it can reduce risk and upfront costs. Instead of paying a fee to the staffing agency upfront, they only pay if a placement is made. Additionally, businesses can work with multiple staffing agencies at the same time without worrying about duplicating fees.

For staffing agencies, contingency search agreements can be an effective strategy for winning new business. Companies may be more willing to work with a staffing agency that doesn`t require upfront payment. However, the downside for staffing agencies is that they bear the risk of investing time and resources into finding candidates without the certainty of payment.

It`s important to note that the specifics of a contingency search agreement can vary depending on the agency and the client. The agreement should include details on the fee structure, timeline, and any exclusivity requirements. It`s important to review and negotiate the terms of the agreement carefully before signing to ensure that both parties are in agreement.

In conclusion, a contingency search agreement is an arrangement where a staffing agency only receives payment if they make a successful placement. It can be a low-risk option for businesses looking to fill open positions without committing a lot of upfront costs. However, it`s important to carefully review the agreement and negotiate terms to ensure that both parties are in agreement.

What Is a Contingency Search Agreement
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