Recruitment:

What Is Recruitment and How Does It Work?

Companies use recruitment services to attract specialized professionals and executives for specific permanent positions. A manufacturing facility might be looking for an experienced shift supervisor, an IT team might need a specialist for a project, and an administrative department might be seeking a part-time business professional.

In direct recruitment, a staffing agency searches for and screens suitable candidates for an open position. After selection, the client company enters into an employment contract directly with the hired individual. The recruitment process ends once the position is successfully filled.

This model is particularly well-suited for positions with long-term staffing needs, hard-to-find qualifications, or limited internal recruiting capacity. The service provider assists with candidate search, pre-selection, interview scheduling, and, if needed, contract negotiations and onboarding.

Recruitment, Temporary Work, and Labor Leasing: What’s the Difference?

In recruitment, the client company is the direct employer. In temporary work or labor leasing, the staffing agency remains the employer. Employees work at the client company for a limited period.

In direct placement, the company enters into the employment contract directly with the selected specialist or executive. It is thus responsible for salary, social security, and other employer obligations.

In temporary staffing, the staffing agency handles the employment contract, payroll, social security, and obligations under labor law. The client company pays an agreed-upon rate for the assignment. For uninterrupted assignments at the same company, a maximum assignment period of 18 months generally applies. Essential working conditions take effect from the first day; equal pay is typically achieved after nine months at the same client company.

Direct placement is suitable for long-term roles and immediate team integration. Temporary staffing can be useful for short-term, seasonal, or fluctuating staffing needs. Companies should determine which contract type best meets their needs before placing an order.

How the placement of specialists and executives works

The recruitment process often follows five steps.

Understanding the need: creating a robust job profile

At the outset, the company and the staffing agency clarify tasks, responsibilities, technical requirements, compensation ranges, and the start date. Leadership experience, team structure, work schedule, and corporate culture are also included in the job profile.

A precise profile prevents search processes from yielding unsuitable candidates. It also creates a transparent basis for the subsequent selection decision.

Identifying and pre-screening candidates

The recruitment agency searches for suitable candidates within its own network and through appropriate research channels. It reviews qualifications, professional experience, motivation for changing jobs, availability, and key conditions in advance.

The company receives a shortlist of pre-screened candidates. This allows internal HR departments to focus on interviews and decision-making.

Preparing for and Conducting Selection Interviews

The staffing agency presents suitable candidates, organizes interviews, and gathers feedback. Companies should determine which departments and managers are involved in the selection process and set a timeline for making decisions.

Structured interviews help evaluate competencies, leadership experience, and teamwork in a comparable manner. For leadership positions, additional procedures such as reference checks or management assessments may be useful.

Negotiating the Contract and Terms

After the selection, the company negotiates the employment contract, compensation, working hours, and start date directly with the selected candidate. The staffing agency can support the negotiation process and clarify any outstanding issues between the parties involved.

Preparing for Onboarding

The placement process often ends with the signing of the contract. However, a planned onboarding process reduces the risk of early termination. Companies should define responsibilities, an onboarding plan, technical equipment, and meeting schedules before the first day of work.

Recruitment by Industry: Typical Requirements

Job requirements vary depending on the industry, role, and location. In addition to professional qualifications, availability, work schedule, and specific staffing needs are also crucial.

IT: Aligning Specialized Knowledge with Project Requirements

In IT, the profiles sought range from software development and system administration to IT security, data analysis, and leadership positions. Companies should define required technologies, project durations, interfaces, and responsibilities early on.

For hard-to-fill IT roles, precise prioritization is essential. The service provider must be able to identify which skills are absolutely necessary and for which requirements on-the-job training is possible.

Manufacturing: Consider Professional Expertise and Work Models

In manufacturing, positions sought include shift supervisors, electricians, mechatronics technicians, CNC specialists, and technical maintenance staff. Degrees, professional experience, shift availability, and required certifications vary by job function.

Companies benefit from clear information regarding machinery, shift models, safety requirements, and scope of responsibility. This information improves the pre-screening process and reduces the need for back-and-forth coordination.

Logistics: Review Qualifications and Operational Availability

In logistics, job postings typically cover roles such as warehouse management, scheduling, shipping, transportation planning, and forklift operator positions. For operational roles, qualifications such as a forklift operator’s license, shift availability, and language skills are often relevant.

For specialized and managerial roles, experience with warehouse management systems, process knowledge, and personnel management play a greater role. Companies should prioritize these criteria based on their importance.

Administration: Define the work model and specialized knowledge

In administration and commercial departments, recruitment requests often include administrative work, assistant roles, accounting, human resources, and internal sales support. Part-time arrangements, on-site requirements, language skills, and software proficiency should be clearly described in the job posting.

Healthcare: Account for Legal Requirements

In the healthcare sector, professional licensure, certification, and specific qualifications are prerequisites for many positions. Companies should define the required credentials before beginning the search and verify them during the selection process.

Depending on staffing needs, a direct permanent position or temporary staffing may be appropriate. The decision depends on the role, the duration of the assignment, and operational requirements.

Recruitment Costs: Who Pays for What?

In the B2B sector, the client company bears the costs of recruitment. The fee depends on the search profile, the position, the extent of pre-qualification, and the agreed-upon services.

In the case of a successful placement, a one-time commission is often agreed upon. This model generally does not incur ongoing monthly additional costs. As a rough guide, commission ranges typically fall between 15 and 25 percent of the gross annual salary. However, the specific fee depends on the individual placement assignment.

A different cost model applies to temporary staffing. Companies pay on an ongoing basis for the duration of the assignment. The amount depends, among other things, on qualifications, the work schedule, the duration of the assignment, collective bargaining agreements, and the industry.

When assessing cost-effectiveness, companies should not consider only the placement fee. Also relevant are the costs associated with internal searches, unfilled positions, departmental time, poor hires, and the time it takes to fill a position.

Frequently Asked Questions About Recruitment

Who pays for recruitment services?

The client company bears the costs of recruitment. The exact scope is specified in the individual quote and the recruitment contract.

How quickly can a position be filled?

A fixed timeframe cannot be guaranteed. It depends on qualifications, salary range, location, the candidate market, availability, and the speed of internal decision-making. A precise job description and confirmed interview dates help expedite the process.

What is the difference between permanent recruitment and temporary staffing?

In permanent recruitment, the client company hires the selected candidate directly. In temporary staffing, the staffing agency remains the legal employer and assigns employees to the client company on a temporary basis.

Is recruitment also suitable for hard-to-fill positions?

At a minimum, the following are required: job responsibilities, must-have and nice-to-have criteria, salary range, work location, work schedule, reporting structure, start date, and decision-making process. Information about team structure and company culture helps assess the candidate’s fit.

What information does a staffing agency need for a search assignment?

Convert the documented needs into a comprehensive cost analysis. Add internal expenses and estimated vacancy costs to the direct costs.

Can a company hire employees from a temporary staffing arrangement?

A permanent hire can be arranged. The terms are determined by the contract with the staffing agency and applicable legal requirements. Companies should clarify this option before the assignment begins.

Conclusion: Recruitment for Predictable Hires

Recruitment supports companies in filling specialist and leadership positions with direct, permanent employment. The staffing agency handles the search and pre-selection, while the company makes the final hiring decision.

Whether direct placement or temporary staffing is the right choice depends on the duration, urgency, and nature of the staffing need. A precise search mandate, clear decision-making processes, and a suitable recruitment partner lay the foundation for a targeted placement.

Do you want to meet your staffing needs through recruitment and find the right specialists and executives? Then get a no-obligation consultation on recruitment as well as specialist and executive placement.