Recruiting engagement models
Recruiters Workforce works requisitions under four engagement models. Three of them, contract staffing, contract-to-hire and direct hire, cover most positions and are compared in the table below.
The four models
-
Contract staffing
Hourly W-2 or corp-to-corp staffing for funded work with a known end date, billed for hours worked.
- Who employs the worker
- Recruiters Workforce (W-2) or the worker's entity (corp-to-corp)
- How you pay
- Hourly bill rate, invoiced for hours worked
-
Contract-to-hire
An hourly contract period followed by conversion to your payroll at a pre-agreed conversion fee.
- Who employs the worker
- Recruiters Workforce until conversion, then the client
- How you pay
- Hourly bill rate, then a pre-agreed conversion fee
-
Direct hire
A contingent search for a permanent position, with a placement fee invoiced when the candidate starts.
- Who employs the worker
- The client, from the start date
- How you pay
- Placement fee, agreed in writing, invoiced on start
-
Retained search
A dedicated search for a senior or hard-to-fill role, with part of the fee paid on engagement and a committed timeline.
- Who employs the worker
- The client, from the start date
- How you pay
- Staged fee: engagement, shortlist, start
Engagement models compared
The table sets out who employs the worker, how the fee works, the typical duration and when each model fits. Fees and rates are set in writing before a search begins and are never charged to candidates.
| Term | Contract | Contract-to-hire | Direct hire |
|---|---|---|---|
| Who employs the worker | The worker is a W-2 employee of the staffing firm or works corp-to-corp through their own entity, and is assigned to your program. | The worker starts as a W-2 employee of the staffing firm and converts to your payroll at an agreed point. | The worker joins your payroll from day one as your employee. |
| How the fee works | A bill rate per hour covers pay, employer taxes, benefits and the firm's margin; you are invoiced for hours worked. | An hourly bill rate during the contract period, then a conversion fee if you hire, usually reduced by the time already billed. | A placement fee, agreed in writing before the search starts, invoiced when the candidate starts. |
| Typical duration | Three to twelve months, tied to a task order, option year or surge. | A defined evaluation period, commonly three to six months, then conversion. | A permanent position; the search runs until the seat is filled. |
| When it fits | Funded work with a known end date, surge staffing, or a program awaiting a permanent requisition. | A permanent need where you want to confirm fit, clearance timing or budget before committing. | A permanent seat with approved headcount and a hiring manager ready to interview. |
The fourth, retained search, is used for senior or hard-to-fill positions where the employer wants a dedicated search with a committed timeline.
The model is agreed in writing before sourcing begins, together with the bill rate, salary range or fee basis and the replacement terms. Candidates are never charged a fee under any model, and every candidate is told which model applies before being submitted.
Choosing between them
The choice usually turns on three questions. Is the work funded for a defined period or is the seat permanent? Does the program need the worker on its own payroll, for example because the contract counts full-time equivalents or because the position is a key personnel role? And how much certainty does the hiring manager want before committing to a permanent hire? Funded, time-limited work points to a contract engagement; a permanent seat with a wish to confirm fit points to contract-to-hire; a permanent seat with approved headcount points to direct hire; and a senior seat that has stayed open, or that must be filled discreetly, points to retained search.
Questions about engagement models
Can an engagement change model part-way through?
Yes, by agreement. The most common change is a contract engagement converting to direct hire when the program obtains permanent headcount, in which case the conversion terms of the contract-to-hire model apply. The written agreement sets out how a conversion is priced so that neither side is surprised.
Who carries employer obligations on a contract engagement?
For a W-2 contract worker, Recruiters Workforce is the employer of record and carries payroll, employer taxes, workers' compensation and benefits, and invoices the client for hours worked at the agreed bill rate. For a corp-to-corp arrangement the worker's own entity carries those obligations under a subcontract. The client directs the work on site in either case.
Send a requisition
Call (512) 200-2912 or email info@recruiterswf.com, Monday to Friday, 8:00 AM to 5:30 PM Central.