In this overview we show you the employment models we work with. The same person can work for you as an employee, as contract staff, as an interim manager or as a freelancer. What changes is not the person but the contract: who is the employer and who bears the risk? What are the terms and the costs?
The question is: which employment model solves your problem best?
| Employment model | Duration | Our fee | Flexibility | Legal framework | Use case |
|---|---|---|---|---|---|
| 01Permanent employment | permanent or fixed-term | fee as a percentage of the target annual gross salary; for Executive Search and Direct Search as a retainer in three equal instalments, for recruitment (placement) on signing of the employment contract | low after hiring, the person is permanently with you | employment contract between you and the person | permanent filling of a position, approval is in place |
| 02Contract staffing | from 6 months, usually 18 months, after that direct hire is possible | hourly rate, invoiced once a month, all-inclusive | high; the assignment can be ended with notice, direct hire at any time | Temporary Agency Work Act (Arbeitnehmerüberlassungsgesetz, AÜG); we are the employer, you are the hirer (Entleiher) | need exists, but no approval yet for a permanent position; project, parental leave cover |
| 03Employer of Record (EOR) | maximum of 18 months | monthly rate (includes employment and recruiting costs) | high for market entry, no need to set up a company | AÜG; we are the employer, you are the hirer | employment in Germany without your own company |
| 04Interim management | typically 3 to 12 months | fee for the search, or daily rate if we handle the complete administration | very high, available at short notice, clearly time-limited | service contract or contract for work (Dienst- oder Werkvertrag), directly with the self-employed executive or with us | short-term vacancy in a management position, special project |
| 05Freelancers and contractors | project-based, weeks to months | fee for the search, or daily or hourly rate if we handle the complete administration | very high regarding start and end | service contract or contract for work, directly with the specialist or with us | selective need for specialist expertise without permanent employment |
| 06RPO and Recruiter on Demand | completely flexible | hourly or monthly rate instead of a fee per placement | high, capacity scalable | service agreement | capacity limits in recruiting or complete outsourcing of recruiting |
We search, you hire. The person signs the employment contract directly with you, either permanent or fixed-term. We offer our clients three search methods, which differ in target group, approach and fee.
A retainer search pays off when the pool of suitable people is small and they are not actively looking. Then only a systematic direct approach reliably leads to the goal, and that takes time and capacity. The retainer secures this capacity. We only work on a success basis for very broad profiles that are not industry-specific: there the market offers enough suitable people, and you only pay once the position is filled.
The fee is calculated as a percentage of the target annual gross salary for the position. For Executive Search and Direct Search it is due as a retainer in three equal instalments: one third each on commissioning, on presentation of candidates and on signing of the employment contract. With the retainer you are not only paying for the result but above all for the search itself: market analysis, direct approach, advice and the insights gained from the market. For recruitment (placement), the fee is due as a single sum on signing of the employment contract.
| Search method | Target group | Approach | Fee | Typical positions |
|---|---|---|---|---|
| Executive Search | C-level, small pool of suitable people, mostly not looking for a job | systematic market analysis, identification and personal direct approach, confidential handling | retainer in three equal instalments: one third each on commissioning, on presentation of candidates, on signing of the employment contract | managing directors (Geschäftsführung), executive board (Vorstand), Country Manager, Site Head |
| Direct Search | executives below C-level and specialists with a limited pool of candidates | targeted direct approach of suitable people from our network and market research | retainer in three equal instalments: one third each on commissioning, on presentation of candidates, on signing of the employment contract | Director, Head of, Senior Manager, specialists with rare qualifications |
| Recruitment (placement) | very broad profiles that are not industry-specific | search in our database, network and the active market, pre-selection and introduction | fee on signing of the employment contract, no advance payment | commercial and administrative functions without a life sciences connection |
We employ the person and assign them to you. They work in your team, under your professional direction, on our employment contract. We cover salary, social security contributions, holiday and sick leave; you pay an hourly rate, invoiced once a month.
Legally, not at all: both are governed by the AÜG. The difference lies in the assignment: temp agency work covers short-term, often undefined demand with quickly available workers. We, by contrast, search specifically for a particular specialist or executive for a particular position, just as for permanent employment, only with a different contract. The search is the same; direct hire is the goal from the start.
At least six months, usually the full statutory maximum assignment period of 18 months. Within this period you can take the person on into your own employment at any time. The assignment itself can be ended with contractual notice, without the person being dismissed; they remain employed by us.
You conclude your own employment contract with the person, and the assignment ends. The conversion fee depends on how long the assignment has lasted so far: the longer the person has already been with you through us, the lower it is. After 12 months, direct hire is always free of charge.
When the need is there but approval for a permanent position is still missing. Or when the assignment is fixed-term from the outset: a project, parental leave cover, bridging the gap until a successor is found. In all cases you get the person you would also hire permanently, without having to wait for the headcount.
We have held a licence for temporary agency work (Überlassungserlaubnis) from the Federal Employment Agency (Bundesagentur für Arbeit) since 2011. For all contract staff, equal pay and equal treatment under the AÜG apply, as do the maximum assignment period of 18 months and the obligation to label and specify the assignment (Kennzeichnungs- und Konkretisierungspflicht) in the temporary agency work contract (Überlassungsvertrag). You can view our licence here: Licence for temporary agency work (PDF) (German)
Constares is a member of the GVP (German staffing association, Gesamtverband der Personaldienstleister). The GVP collective agreement applies in full to our contract staff: pay, sector-specific supplements (Branchenzuschläge), holiday, working time account and notice periods are governed by the collective agreement. GVP membership certificate (PDF) (German)
You want to employ someone in Germany but have no company here. We are the legal employer: employment contract, payroll, taxes and social security are handled by us, while professional management lies with you. On request we also take over the search, so that the entire route from finding to employing someone in Germany comes from a single source.
Legally, none. The term Employer of Record has no legal basis of its own in Germany; for staff working for you on site, it is temporary agency work (Arbeitnehmerüberlassung) under the AÜG and requires a corresponding licence, which we have held since 2011. The difference lies in the reason: with contract staffing, the approval for a permanent position is missing; with EOR, the German company is missing.
The statutory maximum assignment period applies here too. By then at the latest, you take the person on into your own German company. The 18 months are intended as a bridge: you employ immediately, set up your company without haste and take the person on as soon as the company is in place. Direct hire is possible at any time, and free of charge after twelve months.
A monthly rate that includes employment and recruiting costs: search, salary, employer costs, social security, payroll and service. One invoice per month, no set-up fee.
For companies outside Germany, mostly from the life sciences industry, that want to start here with one or a few people, for example with a Country Manager, Medical Science Liaison or regulatory affairs specialist. Everything else on the process, legal framework and support with setting up a company.
Process, legal framework, support with setting up a company and costs at a glance.
An experienced executive takes on a management function at your company for a limited period. They are self-employed, work on their own account and bear responsibility for results like an employed executive. We find the right person from our network. You either conclude the contract directly with them, or we handle the complete administration and are your contractual partner.
Typically three to twelve months, extendable. The period is defined from the outset, usually by the event that triggers the assignment: a successor being appointed, a project being completed, a restructuring being concluded.
That depends on the route. If you conclude the contract directly with the executive, you pay us a fee for the search and pay the executive their daily rate. If we handle the complete administration, you pay us a daily rate that includes everything. The amount depends on level and task. Social security contributions and notice periods in the employment law sense do not apply in either case.
With contract staffing, the person is employed by us and works under your direction. With interim management, the person is self-employed, is given a task with responsibility for results and steers the way there themselves. The former suits specialists and executives who are integrated into your organisation; the latter suits management tasks that someone takes on under their own responsibility.
When a management position suddenly becomes vacant and filling it takes months. When a special project needs experienced leadership without a position remaining afterwards. Or when a restructuring calls for someone from outside.
A specialist complements your team with expert knowledge, on their own account, for a defined task. We find the right person. You either conclude the contract directly with the specialist, or we handle the complete administration and are your contractual partner.
Project-based, from a few weeks to several months. Start and end depend on the task, not on a contract model.
That depends on the route. If you conclude the contract directly with the specialist, you pay us a fee for the search and pay the specialist their daily or hourly rate. If we handle the complete administration, you pay us a daily or hourly rate that includes everything. Social security contributions do not apply in either case.
In the subject matter. The interim manager takes on a management task with responsibility for people and results. The freelancer takes on a specialist task: a regulatory dossier, a validation, an audit, a study. Both are self-employed, both are fixed-term, but one leads and the other delivers.
When you need specialist expertise on a selective basis that is lacking internally, and no permanent position is planned. Typically in regulatory affairs, quality assurance, clinical research and pharmacovigilance, where projects have a clear beginning and a clear end.
It is not the person who is provided, but the recruiting. One or more of our recruiters work as part of your team and fill your positions, with access to our databases, tools and network. The people hired are your employees from the outset; the recruiter remains with us.
In scope. Recruiter on Demand is a single recruiter for a limited period, for example to absorb a peak in demand or to bridge a vacancy in your own recruiting. RPO means taking over recruiting as a whole or for a defined area, usually for six months or more, or permanently.
An hourly or monthly rate per recruiter instead of a fee per placement. With many positions per year, this is significantly cheaper than individual placements, and the costs are predictable.
Not for the person being hired: they receive a completely normal employment contract with you. RPO is a contract model for the recruiting itself. That is why it is included in this overview: it addresses the same resourcing problem from a different angle, not “who provides the person” but “who finds them”.
When you fill many positions regularly or in waves. When your internal recruiting reaches its capacity limits. Or when life sciences expertise is lacking in recruiting and you do not want to build it up yourself.
Not sure which employment model suits your situation? That is the norm, and that is exactly why we start not with the contract but with the need. Talk to us and we will find the right route together.
Christian Limmer