What's the Real Difference Between Company Recruiting and Consultancy Recruiting? Seeking Insights!

Dear Seniors, can anyone help me by providing information regarding the difference between recruiting for a company and for a consultancy? Please... Awaiting the reply... Thank you.

I have worked for a consultancy for almost one year, and now I would like to apply for companies as a recruiter to enhance my skills. My query is whether there will be any change in the work or will it be the same as in the consultancy?

As an activity, it is the same, but what will differ is the pursuit of profiles. In a consultancy, you will go after profiles of various skills as you have a number of requests, probably from a number of clients (like a buffet). Whereas in an organization, it will be purely based on the skills that the company would want to use to deliver what is expected of them (like home-cooked food).

I can't get simpler than this.

Regards,
TSK. Raman

As an activity, it is the same, but what will differ is the pursuit of profiles. In a consultancy, you will go after profiles of various skills as you have a number of requests, probably from a number of clients (so it is like a buffet), whereas in an organization, it is purely based on the skills that the company would want to use to deliver what is expected of them (like home-cooked food). I can't get simpler than this.

Regards,
TSK. Raman

Hi Raman, one more thing... In consultancy, there will be a billing rate for the recruiter. Then what about in a company, will it be the same, or will there be any other mode...

Dear Nandy,

Nowadays, you often start your career with a recruitment consultancy; it is the first step for most HR professionals. In my personal view, recruitment with consultancy provides good exposure. You engage in 360-degree recruitment across various sectors, offering more relevant experience when you join a specific sector company. Therefore, you have to recruit solely for them. Recruitment in any sector offers similar experiences; the key difference lies in the time-consuming aspect of the final section of recruiting a person in a company. By working closely with the Hiring Manager, you gain insights into whether a particular person will be hired or not.

Recruitment Consultancy Process

Recruitment consultancy is a process that takes time and involves long follow-ups. Most companies prefer employees with extensive recruitment exposure, often gained through consultancy. Nowadays, and even in the future, companies are creating HR-recruitment profiles solely for hiring purposes, eliminating the need for other responsibilities. With the FDI policy in place, this demand is set to increase, leading to a boom in the industry for the next ten years.

Regards,
Aarin Ratnesh Sorathiya
Sr. HR Executive
Aspee Group Mumbai

(You can add me on LinkedIn)

My apologies for not asking clearly. My query is regarding the charges imposed by consultancies for a new hire based on the offered CTC to the employee. This charge typically amounts to a certain percentage (e.g., 7% or 8%), known as billing, and is paid by the client to the consultancy.

Recruitment in Organizations vs. Consultancies

In the case of organizations hiring for their own positions, recruiters typically do not receive a percentage for filling those roles. Recruiters in such organizations work directly to fill job positions internally.

I hope this provides the information you were seeking. If not, I will be sure to reach out to you for further clarification.

Thank you.

Working with a company exposes you to broader opportunities than consultancy. Consultancies earn money solely through recruitment, which is their primary business area. They provide incentives to recruiters based on their performance, but with a company, you engage in real HR work encompassing the entire generalist profile. In a company, the focus of the business is not just recruitment; they operate across various sectors. The main contributor to the financial success of a company always receives incentives.

In any company, the marketing team receives incentives, similar to how recruiters in consultancies are rewarded. However, when working directly for a company, if you are not contributing directly to the revenue, you won't receive any incentives and will be on a fixed salary. As a recruiter, your role involves selling a job to a candidate. Recruitment involves identifying talent and incorporates elements of marketing and sales. For instance, you may source 10 candidates but only hire the best one, effectively "selling" them the job.

Regards,
Aarin Ratnesh Sorathiya
Sr. HR Executive
Aspee Group, Mumbai
(You can add me on LinkedIn)

Consultancy acts as a mediator in recruitment, whereas in a company, you will be the recruiter. There will not be any percentage from the client or from the person you are selecting; that person will be chosen for your organization. I hope this clarifies your question.

Well, whether you work for a consultancy or a company, your basic profile will be the same, but you will have limited exposure to the profile. Once you have recruited a person for your client in a consultancy, it often marks the end of your role. However, in a company, even after recruiting employees, you will be involved in various day-to-day HR activities, including solving HR-related issues, and more.

Differences Between Working for a Consultancy and a Company

In short, when working for a consultancy, your main and only task is to onboard employees for your client as per requirements. As a company HR professional, your responsibilities extend beyond recruiting to managing employees after they are onboarded.

Dear Nandy,

In the case of recruiting for an organization as a recruiter of the organization, you will not be given any other percentage for that, as per my experience. There, you will be working as a recruiter of the organization itself.