Recruiting 101: HR Terminology

Recruiting 101: HR Terminology


Recruiting is a great field that offers lucrative compensation and huge advancement opportunities. But it’s not exactly the best-known industry among college students and recent grads. It's sort of a secret industry but when you discover it you will be glad you did as the rewards and flexibility that it comes with are endless.

The great news? There are many majors that prep you for this type of work and of course bypassing the four year investment altogether by taking this course. Some majors include Human Resources, communications, business administration, public relations, advertising, marketing, psychology, and finance. I have a masters in Human Resources and have never needed or used my degree in my field.

Here are the terms you need to know before you start applying to positions:

Staffing Recruiter

Let’s tackle this one first. You might hear the word “recruiter” and think that this role falls within Human Resources. But it’s more related to sales than HR.

That’s because Staffing Recruiters “sell” amazing candidates on a specific company and role. To help their clients fill specific high-priority positions, staffing recruiters post job listings, find and reach out to qualified candidates, and manage the candidate experience throughout the recruitment process.

That’s why thriving in this role requires, among other qualities, strong relationship-building skills.

Account Manager

While Staffing Recruiters focus on building relationships with candidates, Account Managers build relationships with clients. These clients turn to staffing companies to help fill open roles. It’s the Account Manager’s job to ensure all clients are getting the candidate results they’re looking for.

Delivery Manager

One thing Account Managers do not do is manage and support Staffing Recruiters. That is the responsibility of the Delivery Manager. This role is tasked with equipping Staffing Recruiters with the tools they need to be successful with clients. That can include things like training, helping allocate which positions they work on each day, and facilitating team and one-on-one meetings.

Corporate Recruiter

Corporate Recruiters connect with hiring managers across the country to hire Staffing Recruiters for their own team or company.

Headhunter vs. Staffing Recruiter

In the past, the term “headhunter” had a far more negative connotation. Today, you’ll hear these two terms used interchangeably in many places. That said, they’re aren’t necessarily the same thing. A headhunter could refer to someone who identifies candidates before finding positions that perfectly match them. That distinguishes them from Recruiters, who know the position before they find the ideal candidate.

Employment Agency vs. Staffing Agency

Many people think these are the same thing, but they’re actually pretty different.

Employment agencies typically focus on temporary employee placements with faster turnaround times. For example, if a company needs someone to fill in for six months while the full-time employee is on leave, it would likely use an employment agency. Staffing agencies, on the other hand, place employees in long-term, (often) full-time assignments. Because of this, the process is a bit more consultative and strategic.

Full Desk Recruiter

I have no shame in admitting that running a full recruitment desk can be challenging work. I would say that it is one of the most demanding jobs as it requires you to have so many varied skills to be successful. Full desk recruiters these days need to be marketers, personal brand specialists, salespeople, hostage negotiators, personal assistants, headhunters and community builders, all sometimes in one morning. This is incredibly tough to do, but the role requires that we are always multitasking, with a smile on our faces, as don’t forget that we are in a people facing role too.

It is important that you're up to speed and have a strong handle on all of the following terminology so you're prepared to take on your new role as well as handle the interview process in a proficient manner. Depending whether or not you're applying to a specific position it is valuable to understand and master your recruiting vocabulary. This makes you stand out from the crowd and gives you much more leverage when you know what you're talking about with the either a hiring manager or a candidate being interviewed by you. 

Whether you’re looking for a job or looking to hire, it’s important to understand the differences between the most common types of employment, including temporary, contract-to-hire, and direct hire. Each type is designed to suit varying needs. Review the following carefully to discover which is best for you and your desired needs:

Temporary

Temporary employment is an ideal solution for unpredictable workloads, project work, seasonal peaks, and other limited-term needs, such as a leave of absence. Temp positions typically have a set timeframe. Through all assignments, the talent is employed by the staffing firm.

Temping is a flexible option for clients and talent alike. It helps clients save on employee costs and allows talent to build a resume and gain experience on different projects with different industries.

Direct Hire

When a client has a long-term need, direct hire is ideal. Direct hire positions are permanent, usually full-time positions with benefits. A staffing agency is involved during the recruitment and hiring process, but after an offer is accepted, the candidate goes directly on the client’s payroll.

The process for direct hire can be a little slower because clients want to take their time when making a long-term decision. It is ideal for candidates who are not as comfortable taking the risk of working contract. Direct hire employees are eligible for company benefits such as health, retirement, and PTO, and have the security of a long-term, permanent position.

Contract to Hire

A hybrid of temporary and direct hire, contract-to-hire is a way for clients and talent to test the waters. It allows potential employees to prove themselves to the company and see if the culture is a good fit. Likewise, it allows the client to test the candidate for a predetermined period of time. During the contract period, the talent is employed by the staffing firm.

The contract-to-hire process typically moves fairly quickly. Before entering into a contract-to-hire situation, clients should outline the terms – how talent will be evaluated and when the contract period ends. Clients should also maintain open lines of communication and provide consistent feedback to put the talent at ease. Once a permanent position is offered and accepted, talent transition from the staffing agency’s payroll to the client’s payroll.

Contract-to-hire offers many benefits for talent and employers when both have sincere intentions. 

The Benefits for the Company
  • Contractors are billed for hours worked, rather than a large upfront fee after placement. On average, placement fees with recruiting firms can range from 15-20% of the employer’s salary. By “paying as you go”, companies can save sometimes thousands of dollars on the front end, if the employee doesn’t work out.
  • Ability to truly evaluate skill-set and culture fit on the job; can they actually accomplish what they say they can?
  • Payroll and employment fees (including potential benefits, etc.) are handled by the recruiting firm
The Benefits for the Contractor
  • Same as companies, you are able to feel out the company, environment, and position without feeling a looming obligation to stay at least a year to “look good on your resume”
  • Because you are paid hourly during the contract, you will be able to be compensated for any overtime worked; a big talking point regarding salaried employment
  • Many times as a contractor, your pay rate is higher than a normal salary

Contract roles carry a lot of stigma, especially when it comes to job stability.

“What if I don’t get hired full-time?”

“Will they just let me go after 6 months?”

“I have a family to support, I can’t afford to risk a contract position.”

There are a few key pieces to keep in mind here:

  • Understand the situation. Speak to your recruiter or the hiring manager about what the goal of this job is. You’re allowed to vet the arrangement and get a full understanding of whether this is a short-term project or a means to finding a long-term employee.
  • Know your value and skills. The nature of C2H roles ESPECIALLY is to bring on employees long-term. In most scenarios, as long as you are doing well and there is not an abrupt change of the company’s goals, ease your mind about converting to permanent.
  • 27 states, including Florida, are considered “Right to Work”. Meaning? At the end of the day, it really doesn’t matter if you are a contractor or direct hire in terms of “job stability”. Employers have the right to let you go at any time.

The Takeaway

It’s important to fully understand the differences and benefits between being a contractor, C2H, or direct hire. But the biggest thing that I want to stick with you is to NOT turn away an exciting and potentially lucrative opportunity, simply because the employment starts as a contract.


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