As recruiters, we get a lot of calls from companies who are unsure whether or not they need to use a recruiting service. Here are some guidelines to help you determine when you should look into using a recruiting service and when it just isn't worth your time and money.

Here are some points you should consider before contacting a recruiting firm:

1. What is my budget? This is an important question because recruiting services are quite expensive. Using a recruiter can run up to 30% of the hired employee's base salary. Also, some recruiting firms will take a percentage of any commission, raises or bonuses given to the hired individual during the first year of employment. Therefore, you should only use recruiters when you are sure the employee is going to generate a lot of revenue for your company. If you are looking to hire entry level employees, going through a job board or a local college will often prove to be your best bet. The major job boards that you can post a job and are most likely to receive the most resumes are Monster, Hotjobs and CareerBuilder.

2. How specific is the background of the employee whom I am looking for? If your company is unsure about what kind of background they are looking for, do not use a recruiter. Instead, post the job on various job boards mentioned above. If the job is very specific, such as a position for a sales person who has experience selling biotechnology into various educational institutions, you probably want to use a recruiter. Before you sign the contract, gauge how specific the background of your desired employee is and make a decision about whether or not to use a recruiting service based on your conclusion.

3. When would I like to hire this person? If the answer is very quickly, then a recruiting service might be your best bet. If you are the sole HR person in your organization, there is only so much time you can spend on this endeavor. For one person who only has an hour or two per day to complete this task, it is best to use a staffing firm. However, if your company may hire from within and is uncertain about when they might like to actually take on a new employee, do not bother calling a recruiting company.

4. Are recruiting firms going to take the time to learn about my business? This is a question which can only be answered by a case by case basis. If you find the right recruiter, he or she will do their research. However, some recruiting firms will not invest the time and effort into learning about your company and industry and will prove to be a waste of your time.

5. What is the difference between a contingency and retained contract? A contingency contract is a contract in which you are not bound to pay the recruiting firm until you make a hire. A retained contract is where the recruiting firm receives a payment upfront and is compensated regardless of whether or not you find the candidate you are looking for. Before you make a decision regarding which contract to go with, do your research on each recruiting firm you contact.