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What is Recruitment: The Overview

Posted by Alana Cumming on 12/08/2022


What Is Recruitment Image


There’s no secret that the recruitment industry can be confusing, and at LHi, we understand that and wanted to help those entering the world of recruitment, or looking to find out more about a new industry, to have an overview of what recruitment entails. So, we have put together some of the core information to know all things recruitment…

What is the simple definition of recruitment?

To start getting to know the processes, the various methods of recruitment available, and other aspects of recruitment, we first need to get a grasp of what recruitment actually means. So, to explain it briefly ‘Recruitment is the process of actively seeking out, finding, and hiring people to work for a company and become a new member of an organisation.’

Recruitment Consultants play a key role in the hiring process between candidates and clients, by working to create strong relationships to help understand both the candidates’ and clients’ needs. Their ultimate goal is to place suitable candidates in the right role.

What are the types of Recruitment?

  • Retained recruitment is when the company hires a recruitment firm to fill various positions. They pay an upfront fee and agree to work exclusively with that recruiting firm.

  • Contingency Recruitment is where the company will let a recruitment firm/s fill the position, and the company only pays the recruitment firm once they have hired the candidate.

  • Internal recruitment is the process of hiring someone from your company for a new or open role. Having internal recruiters means that the company has recruiters who manage the complete hiring process.

  • Contract recruitment is used by businesses to hire someone on a short, medium, long term basis where a client has a specific requirement for an experienced individual to fulfil a project need.

  • Permanent recruitment is used by businesses looking to grow as individuals will be placed on a permanent contract and entitled to the company benefits.

What is the Recruitment Process?

One thing to remember when it comes to a recruitment process is that it can vary depending on the company type, size, and needs so, there is not one rigid structure in place. We’re going to walk you through a basic six-step process to help you have an overall understanding of how the recruitment process runs from when the recruiter first posts the job ad to getting your job offer.

  1. The recruiter identifies businesses who are looking to hire and grow their teams, and the recruiter approaches the business to agree to terms and conditions and ways of working.

  2. Once agreed, the recruiter/company will write the job description, including all key points such as requirements, qualifications, desired characteristics, and prior experience.  They will use a variety of means to identify/find the suitable person, often starting with an advert.

  3. You; the applicant can then apply for this job if you think you meet the criteria. The recruiter will receive several applications, which is why, as an applicant, you must make your CV stand out and be job specific. The recruiter will review the applications, eliminate those which are not compatible with the position/company and then contact those they believe are the ideal candidates.

  4. The recruiter will set up an initial screening/phone interview to find out more about what your needs as an applicant are and see if the job will be a right fit for both you as the applicant and for the company recruiting. The phone interview helps the recruiter see if the applicant has the relevant skills and is the right fit for the position and company.

  5. After this, it is interview time! This can be one or several, again, this depends on the company, hiring manager, or position. The recruiter will help prepare you, but this is where your interview prep is essential to make you stand out as a top candidate. Ensure you do your research on the company and prepare answers to key questions they may ask such as, ‘Tell us about yourself’, ‘why do you want to change roles?’...

  6. You are now reaching the end of the process. The company hiring will discuss feedback with the recruiter and it is then, at this point that you find out if you are offered the role.

How do recruiters make money?

Usually, Recruiters earn a base salary as well as either commission and/or bonus based on the number of placements made.  These amounts will vary between different recruitment firms but you can expect to ‘earn’ a % of the revenue you generate. Much like any sales role, the recruitment consultant will earn more, the more revenue is brought into the business. 

How is commission calculated in recruitment?

The commission is commonly calculated as a percentage of the base salary from the job placed. This can vary depending on if it is a contract or permanent role. The percentage generally increases with the higher salary placements. For example, if you place a job and the salary is £20,000, you can receive a percentage of approx. 20%, and if a job placed has a salary of £55,000, you can receive up to 35% in commission.

What are the main tasks that a recruitment consultant does?

The vital link between clients and candidates, a recruitment role is demanding, diverse, and involves:

  • Identifying and developing client business relationships in a competitive environment/industry through cold-calling, use of social media tools, and networking.

  • Identifying and headhunting suitable candidates to match the needs of the clients. Using sales, business development, marketing techniques, and networking to attract business from client companies.

  • Negotiating pay and salary rates and finalizing arrangements between client and candidates.

  • Assessing and responding to the needs of each client or assignment, providing relevant solutions.

  • Sourcing suitable candidates, briefing them on the opportunities offered by the client and preparing them for interviews.

  • Working towards and exceeding targets that may relate to the number of candidates placed, a value to be billed to clients, or business leads generated.

Your Career Path

Career paths can vary within recruitment, but it is important to ensure your company shares this with you when starting your role. To give you an outline of how you can progress within specialist recruitment companies, we are sharing our career path with you here. At LHi, we have a structured career path across the whole of LHi that allows transparency and clarity when considering your career progression options.

We love sharing bits about our industry with you, look out for our next blog in the recruitment series.

If you think you would be a good fit for the recruitment industry and want to be part of our LHi family and the exciting opportunities we offer, reach out to our People Team today:

UK & Europe People Team at recruitment@wearelhi.com
US People Team at recruitmentUSA@wearelhi.com