Direct hire, a.k.a. permanent placement hiring fits the standard model of recruiting and hiring:
- Talented person leaves company A…
- …to go work for company B
If a contingency recruiter is involved in the transition, that recruiter is often paid a one-time "finder’s fee" for the recruiting, screening, interviewing, reference-checking, etc, that brought the company and the talent together. This fee also reimburses the recruiter/agency for the time and expense incurred to screen out all the other candidates who were not hired.
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