How each talent acquisition model is paid, who owns the process, and where it earns its keep.
| Model | How you pay | Exclusivity | Timeline | Who owns the process | Best fit |
|---|---|---|---|---|---|
| ContingencyPay on placement | 15–25% of first-year salary, only if you hire | None. Two to four firms often race the same role | Fast on common roles, stalls on niche ones | Agency sources. You run screening, interviews, close | Well-defined mid-level roles where zero upfront risk beats depth |
| Contract RecruiterPay for time | Hourly or monthly rate, paid regardless of hires | Exclusive. Works your reqs inside your ATS | Fixed term, typically 3–9 months | Runs full-cycle recruiting. Process stays yours | Covering a leave or absorbing a short burst of open roles |
| RPOOutsourced function | Management fee plus per-hire or cost-per-hire | Exclusive and contractual, usually multi-year | Ramps over months, built for sustained volume | Vendor owns process, tech, and reporting | High-volume ongoing hiring you want run for you end to end |
| Embedded / FractionalIn-house, on tap | Flat monthly retainer, scoped by concurrent roles | Exclusive. Your team, your tools, your brand | Engagement-length, typically 3–12 months | Builds the function and hands it off, not just hires | Seed–Series B companies needing senior TA now and process after |
| Retained SearchDedicated, upfront | 25–35% of salary or flat fee, billed in installments | Fully exclusive, single firm, deep partnership | Slower and thorough, opens with market mapping | Search firm owns the search start to close | Executive, confidential, or specialized roles where a miss is costly |
| Full-Time HirePermanent headcount | Salary, benefits, and tooling, fixed whatever the volume | N/A. They are your team | Weeks to hire, then indefinite tenure | Total ownership, knowledge compounds internally | Steady predictable volume that justifies a standing seat |
Founder-led hiring off networks. Volume is too low and too lumpy to justify anyone permanent, and cash is the constraint, so risk gets pushed onto the vendor.
The inflection point. Hiring is constant but uneven, process is breaking, and founders are still interviewing everyone. Most companies here need a function built, not a stack of resumes.
Volume is now predictable enough to carry fixed cost. In-house team becomes the default, with outside help layered on for surges, hard-to-fill functions, and leadership.
Scale, compliance, and cost-per-hire drive the decision. Recruiting runs as an operation, and outsourcing is a procurement decision rather than a capacity one.