In the world of recruitment, terminology is frequently confusing and misapplied. Anyone seeking a job needs to grasp the distinctions between different types of recruitment firms and how they operate. A lack of understanding can be a hindrance in the complex task of finding a new job. This article explains how the recruitment market works and seeks to help professionals in making their next career move.

Types of recruitment:

Executive search (also known as headhunting)
Executive search firms are retained by corporate clients to find the most suitable candidate to fill a particular role on a fee basis. The method is typically used for senior-level jobs, for which there is a small pool of appropriate high-level candidates who can be identified and targeted. "Search Firms" aim to find the best candidates for the position, whether or not they are looking to move. There are a number of major executive search firms that work internationally across different industry sectors. Smaller "boutique" firms operate within particular geographies, industries or functions.

Advertised selection
Advertised selection takes place when a firm is retained by a client to advertise in the national, regional or trade press to find candidates for a particular role. This approach relies on individuals being active in the job market and reviewing the newspapers or trade publications to find positions that may be of interest to them. Typically, the firm involved will review all of the letters and CVs received, interview the most relevant candidates and present a shortlist of individuals who are suitable for, and interested in, the role to the client. Advertised selection is most frequently used for hiring into middle-management positions. It can also be used for more senior roles for which the ideal candidate might be selected from a range of positions, and therefore difficult to target through search.

Contingent recruitment
Contingent recruitment is so called because the fees charged by the recruitment firm is contingent on a placement being made. Recruitment firms in this market rely on jobseekers registering directly with them, or replying to an advertisement. Corporate clients will use the services of one or more firms to find the best talent in the market available at that time. These firms use their extensive databases to fill roles. They tend to work on roles at the lower salary bands, but can also focus on temporary or contract positions. The scope of the roles that recruitment firms deal with may include secretarial positions through to qualified accountants and sales and marketing professionals. In markets where there is a healthy supply of available candidates, recruitment firms may be used by corporates to handle more senior roles, and to avoid paying retained search fees.

Online recruitment
In the past few years there has been a proliferation of firms offering recruitment services via the internet (some 600 new career and recruitment websites appeared during 2001 alone). Most of these sites aggregate jobs from a variety of sources, but few offer the right kind of opportunities for senior executives. Those sites that operate at the top end of the recruitment market should be able to offer a mixture of automation (online registration and profile updating) and personalization (regular newsletters, information on relevant new opportunities etc). Standards in e-recruiting vary enormously, so try to limit your involvement to firms with a sound reputation offline.

The distinctions between the different kinds of businesses in recruitment may not always be clear to a potential candidate. So a good way to start is to ascertain at the outset what kind of organization you are dealing with and how it is likely to use any personal information that you supply.