Stepping into the world of recruitment can feel like learning a new language. Whether you’re fresh out of university or switching careers, understanding the jargon used within the recruitment industry is essential to your success. This guide will help you navigate the most common terms you’ll encounter, ensuring that you’re fully prepared to thrive in your new role.
180 Recruitment
This model focuses purely on candidate sourcing. Recruiters in 180 roles concentrate on finding, screening, and preparing candidates for roles, while client relationships and business development are handled by others.
360 Recruitment
A full-cycle recruitment role where you manage every aspect of the hiring process—from sourcing candidates to building client relationships, handling negotiations, and ensuring successful placements.
Associate
An entry-level recruitment role that involves supporting senior consultants. Responsibilities include sourcing candidates, conducting research, and assisting with client management to gain experience.
Billings
The total revenue generated by a recruiter through successful candidate placements. This figure is often the basis for commission calculations and a key performance metric.
Business Development
The process of identifying potential clients, establishing relationships, and securing job vacancies. Business development is crucial for expanding your client base and ensuring a steady flow of job roles.
Candidate Journey
Refers to the entire process a candidate experiences from initial contact with the recruiter to placement and onboarding. A smooth, positive candidate journey can improve candidate engagement and reputation.
Client Brief
A detailed outline provided by the client, specifying the job requirements, qualifications, and responsibilities of the role. The brief serves as a guide for sourcing suitable candidates.
Commission
A performance-based payment earned on top of a recruiter’s base salary. Commission is typically calculated as a percentage of the fees generated from successful placements.
Contingent Recruitment
A recruitment model where the recruiter is paid only when a candidate is successfully placed. Multiple agencies often compete to fill the same role, making it highly competitive.
Contract Recruitment
Recruiting candidates for temporary, project-based roles with a set duration. It involves fast-paced placements, often for industries that require specialised or short-term expertise.
C-Suite
Refers to high-level executive positions such as CEO, CFO, COO, and CTO. Recruiting for C-suite roles often involves headhunting due to the specialised skill sets and leadership qualities required.
Desk
A recruiter’s portfolio of active clients, vacancies, and candidates. Building and managing your desk efficiently is key to driving billings and maintaining a steady flow of placements.
Fee
The payment a recruitment agency charges a client for filling a role. Typically, this fee is a percentage of the candidate’s first-year salary, which varies depending on the industry and role.
Garden Leave
A period during which an employee, often leaving or being dismissed, is kept away from the workplace but remains on payroll. Garden leave is used to protect sensitive company information during transitions.
Headhunting
The practice of directly approaching individuals who are not actively looking for new roles, typically for high-level or specialised positions. This targeted recruitment method is commonly used for executive search.
Hiring Manager
The individual responsible for overseeing the recruitment process from the client’s side, defining job requirements, interviewing candidates, and making final hiring decisions.
Non-Compete
A legal agreement that prevents an employee from working for a competitor or starting a competing business for a specified period after leaving their current employer.
Onboarding
The process of helping new hires integrate into the company, including initial training, introductions to company policies, and ensuring they feel comfortable in their new role.
OTE (On-Target Earnings)
This refers to the total earnings a recruiter can expect if they meet their targets, including both the base salary and any performance-related commission or bonuses.
Permanent Recruitment
Recruiting candidates for full-time, long-term positions where the candidate becomes a permanent employee of the client, usually with a full benefits package.
Pipeline
A recruiter’s collection of active candidates and job opportunities that are currently being worked on. A healthy pipeline ensures a steady stream of placements and billings.
Rebate
A clause in the terms of business where the client can reclaim part of the recruitment fee if the placed candidate leaves within a certain period, typically due to poor performance or cultural misfit.
Researcher
A role that focuses on gathering information about potential candidates, market trends, and industry insights to support recruitment processes. Researchers often work closely with consultants in executive search.
Retained Search
A recruitment model where the client pays an upfront fee to engage the recruiter exclusively for a specific role. Retained searches are common for senior or hard-to-fill positions and guarantee payment regardless of the outcome.
RPO (Recruitment Process Outsourcing)
A strategic business model where a company outsources all or part of its recruitment function to an external provider who then manages the hiring process on behalf of the company.
Screening
The process of evaluating candidates based on their CV, experience, and qualifications to determine whether they meet the job requirements before moving them forward to interviews.
Sourcing
The practice of finding and attracting candidates for open roles. Sourcing techniques include job adverts, networking, cold calling, and using databases to locate suitable talent.
Terms of Business
The agreement between a recruitment agency and a client, outlining key details such as fees, payment terms, and the conditions under which the recruitment services are provided.
Threshold
The minimum billings a recruiter must achieve before becoming eligible to earn commission. Once the threshold is surpassed, additional revenue is generated as commission on further billings.
Temporary Recruitment
Recruiting candidates for short-term positions, often to meet seasonal or project-based needs. Temporary roles usually have specific end dates, and contracts can be renewed or extended as required.