Using recruitment agencies for your staffing needs is cost-effective for your business. You should know that firms and recruitment agencies do sometimes disagree, but one common reason behind the breakdown is recruitment fees. The fees are split into temporary, permanent and temp-to-perm fees.
Most companies in London hire a recruitment agency for permanent worker placement. It helps to be aware of the different fees charged by firms for permanent worker placement. Here are the typical permanent placement fees charged by recruitment agencies.
Contingency fees are the most common permanent recruitment fees. The cost is typically worked out as an employee’s annual salary percentage. It is only paid upon successful recruitment and once the candidate starts working. It is possible to split the fee across various salary bandings so ensure you are content with the costs upfront.
Most companies typically contract recruitment agencies on a retainer basis for senior level positions and niche recruitment. This recruitment system is more of a consultative type of recruitment where the company advises and manages on recruitment strategies for the vacant position. The retainer fees are split into three. A third is paid up front, another after producing a shortlist of satisfactory candidates and the last upon successful placement of the candidate.
Some recruitment agencies offer partial rebates of permanent placement fees if recruited candidates leave soon after placement. This is however not an obligation for the recruitment company. Rebates are usually offered if you promptly paid your invoice and there was initially no discount provided for the placement fees.
It is essential to agree on the fees with your preferred recruitment agency up front. This saves you from embarrassment and stress once the candidate has been successfully placed. It also helps you factor in the fees into your company budgets and strategic planning.