how much do recruitment agencies charge?

Scruff

was just wondering how much recruitment agencies typically charge employers if a candidate they put forward is hired by the company?

Gave in a c.v. of a friend to the company i work for and they got the job. Company said the'll be giving me a finders feebut havent said how much yet. Just want to make sure they give me a fair amount!

Lafortezza

I think recruitement agencies usually charge a fraction of the new employees starting salary.
So somebody who was found through a recruitment agency who starts on a salary of say €25,000, the recruitment agency might get between €1k-€3k
Then there's conditions regarding the first year of employment, ie if the new employee gets promotion, pay rise, transfer, is let go/fired/contract ends etc.

onedmc

Generally between 10 and 15%. Though lately it's going as low as 7%, Specialist agencies or Headhunt types 20 to 30% of starting salary.

vibe666

don't know about permanent jobs, but contractors usually get 15-20% taken by the agenies, although some are lower.

RicardoSmith

I don't see what this has got to do with recruitment agencies. The're a business your not. Usually they give a finders fee to individuals of somewhere around 500-2000. These days who knows.

vibe666

Originally posted by RicardoSmith
I don't see what this has got to do with recruitment agencies. The're a business your not. Usually they give a finders fee to individuals of somewhere around 500-2000. These days who knows.

what it's got to do with them is the original poster question. he asked, we've answered.

as for the they're a business you're not remark, it's not true in a lot of cases, including mine.

I am a business. I'm an IT contractor who relies almost exclusivly on agencies for my work.

depending on the contract (anywhere between a couple of weeks and 12 months) I can be earning €150 - €200 a day, of which the agency who sourced the contract takes their 15-20% of. the contract I was on before my current one, that was 15% of €200 a day, so they were making €30 per day from me, €150 a week and over the 3 months of the contract that's a smidgen under two grand.

now in my field I'm an average earner, with some guys (depending on what exactly they do) are earning €600 per day for their services. I was (as were all their other clients) invited to their xmas party and one of the agency guys told me that about a 3rd of us had turned up, which was about 25 people. the staff consisted of about 10 people, so I'm guessing they're making quite a few quid all in all.

I think I'm in the wrong business.

G

Originally posted by Scruff
Gave in a c.v. of a friend to the company i work for and they got the job. Company said the'll be giving me a finders feebut havent said how much yet. Just want to make sure they give me a fair amount!

If you just handed them a CV and said "this guy's good..." then €500 would be nice. Agencies have to spend on advetising, interviews etc to get the right people.

the staff consisted of about 10 people, so I'm guessing they're making quite a few quid all in all.

No need to guess, by what you're saying they make fukall. Add up the averages, 75 clients by €150/week by 26weeks (avg. contract) = approx 300k. Pay the staff of 10 and that doesn't leave much for a party.

Jokah

I was under the impression that Agencies and the like are used by major corps etc to find and filter out the CVs.

Instead of milllions of CVs been sent to a major company in repsonse to a job, THE major company hire an agency to do the dirty work for them and the company pays the agency to find the "right people".

I mean, I went through an agency to get a job with a company and my salary wasn't affected. I know a couple of people that haven't been affected by fees etc...

I suppose different strokes for different folks....

Scruff

Originally posted by G
If you just handed them a CV and said "this guy's good..." then €500 would be nice. Agencies have to spend on advetising, interviews etc to get the right people.

thats what i was thinking myself. didnt mean to imply that i was wanting to get the full agency fee or i'd be in a huff over it (though it would be nice!).

But if my friend is starting on €30+ and if the agency would have charger €2.5-4k if they had got them the job i have to admit i'd feel a bit miffed alright if the company only gave me €1-200 after saving them over €2k.
yeah it might be selfish but as well as helping a friend get a job i did my company a service.
That said i cant help but think of how just last year another mate got one of our mate's a job in the company he works for and got €3K finder'd fee AFTER tax. Now that would be nice...:D

Lafortezza

Originally posted by Jokah

I mean, I went through an agency to get a job with a company and my salary wasn't affected. I know a couple of people that haven't been affected by fees etc...

The company will state that the positions salary is eg €30k, the recruitment agency will charge them say €3k to find the suitable person, so it actually costs the company €33k to find the right person, doesn't come out of the actual employees salary

RicardoSmith

Originally posted by vibe666
what it's got to do with them is the original poster question. he asked, we've answered.

as for the they're a business you're not remark, it's not true in a lot of cases, including mine.

I am a business. I'm an IT contractor who relies almost exclusivly on agencies for my work.

depending on the contract (anywhere between a couple of weeks and 12 months) I can be earning €150 - €200 a day, of which the agency who sourced the contract takes their 15-20% of. the contract I was on before my current one, that was 15% of €200 a day, so they were making €30 per day from me, €150 a week and over the 3 months of the contract that's a smidgen under two grand.

now in my field I'm an average earner, with some guys (depending on what exactly they do) are earning €600 per day for their services. I was (as were all their other clients) invited to their xmas party and one of the agency guys told me that about a 3rd of us had turned up, which was about 25 people. the staff consisted of about 10 people, so I'm guessing they're making quite a few quid all in all.

I think I'm in the wrong business.

I think you've misunderstood my meaning.

I meant that this guy is just someone that has referred someone. If he was a business or and agency there would contract, or at least a business rate that could be used as a benchmark. For a private individual who just hands in a CV you are really dependent on the generosity of the company who takes the hire on. Theres no going rate to compare against. I seriously doubt they'd give you the same rate as they would to agency as a finders fee. In fact they don't HAVE to give him anything at all. I finders fee could be €50 voucher based on the verbal agreement.

WhiteWashMan

depends on high high the professional.
for big city banks in london, it can go as high as 40% of annual salary.
thats a lot of cash if someone is on 100k.

can be a set fee as well depending on the relationship with company.
no hard or fast rules.

The Brigadier

Scruff, just so you know the consultant working on the project would normally get a commission of maybe 10% of the placement fee. Which on a fee of say €2500 is €250.

Do you think you are entitled to more than that based on the effort involved on your behalf?

Bare in mind as well that while an agency may charge a fee of say €2500 they do have a lot of overheads. Do you know how much advertising costs online and in printed media?

Scruff

]Originally posted by James Melody
Scruff, just so you know the consultant working on the project would normally get a commission of maybe 10% of the placement fee. Which on a fee of say €2500 is €250.

Do you think you are entitled to more than that based on the effort involved on your behalf?

Yeah I do actually. The amount a recruitment agency pays its recruiters is between them. Thats the job they're hired to do. Just like sales people they get a % comission.
By hiring people referred by employees, employers cut out the huge cost and hassle of going through recruitment agencies and as an incentive to their employees to continue referring people they should reward them adeqetly.
Employers dont hire people just beccause an employee gives them a c.v. and says "i know this chap, he's good". They still have their C.V. reviewed and if they get past that they have to be interviewed like everyone else. (i assume i'm stating the obious here)
The whole point is i'm saving MY employers money and hassle. It has nothing to do with how much Joe\Joan Smith in the recruitment agency gets paid for doing their job.

Bare in mind as well that while an agency may charge a fee of say €2500 they do have a lot of overheads. Do you know how much advertising costs online and in printed media?

Not a clue James. But now a second person i referred has got a job here, a higher paying one that the last one. So if the recruitment agency was charging 10% i've saved the company from having to fork out a minimum of €6K to them.
All this about recruitment agencies costs is fine and dandy. yes i understand they are a buisness and have costs etc. As WWM said it depends on the employee's relationship with the company. Also some larger organisations will actually have a set finders fee for its employees.
As i said earlier:

didnt mean to imply that i was wanting to get the full agency fee or i'd be in a huff over it

I'm working here nearly 3 years now and get on well with everyone but if my company were to just go "Thanks for referring those 2 people, here's €200" i would be a bit pissed. I wouldn't be thanking them for their generosity for giving me less than 4% of what they were prepared to pay a recruitment agency to get those 2 people in.

The whole point of my post in the 1st place is I just wanted an idea of what recruitment agencies charged so that i could have a reference point as to what the company were prepared to pay to get an agency to provide a suitable candidate to fill the position Vs their generosity to their staff for doing the same and to be able to gague their genorisity or stinginess accordingly.

Dont tell me you wouldn't do the same, cause that would be a load of bollox.

sparkite

do they have to pay you?? dont think so.500/600 would be a nice amount.not bad for taking the five minutes to walk to the HR department eh

Lafortezza

I honestly doubt you will get anything from the company for referring the guy you know. I hope you do but I doubt it.

Consider it from HR dept side, they're collecting and receiving CV's from 1 or 2 recruitment agencies, maybe more, from their own adverts and web ads, and from people like yourself.
They probably had a pile of CV's on someones desk that they whittled down to the guy who got the job.
If someone asked them where his CV came from they'd probably just say "Scruff handed it in", and forget all about it.

let us know if you do get anything though

The Brigadier

Scruff...

you have to bare in mind that you are not providing the same service as a recruitment company. I have a few friends working with companies who offer a finders fee for referring people. They get paid between €200 - €500 which seems to be about the average.

Scruff

Originally posted by sparkite
do they have to pay you?? dont think so.500/600 would be a nice amount.not bad for taking the five minutes to walk to the HR department eh

They said they do pay finders fees. so they'd be **** if they renaged. Don't have a HR dept, too small to need one.

Originally posted by James Melody
you have to bare in mind that you are not providing the same service as a recruitment company. .

How not? I supplied my company with c.v.'s of people with the relevant qualifications and experience for the positions that were on offer. If i'd got c.v.'s from people without the right req's i wouldnt have supplied them to my company. Not my problem if i didnt have to advertise it. I also dont ring up all the time asking do they want more cvs, will they take more, blah blah blah etc. So all round a better service i think.

I have a few friends working with companies who offer a finders fee for referring people. They get paid between €200 - €500 which seems to be about the average.

€200 - €500 you say? After tax @ 42% i should hope. That'd be fine with me. remember i got 2 people jobs so that should be €400 - €1000

RicardoSmith

I kinda expect most companies to be ****, so many try to rip you off every which way. Lets wait and see what happens.

hobnob101

I'll be lambasted for this but....
How come people are looking for money for getting their mates jobs these days?

I would have thought, that if you get your mate a job (pints on him) and get paid €200 as well you would be over the moon!

Yes you would be saving the company money on recruitment agencies, but surely the point is exactly that. You work for your company. You are part of it's success or failure. If you look for a load of money from them because you saved them some money, then how are you working in your companies best interests exactly?

Particularly at the moment, If the company is successful then you have a more secure job. Me feinism hardly helps you or your colleagues.

Paying a finders fee to staff is a nicety. It makes sense for businesses because they are getting personal recommendations. If I was an employer and was greeted with a response of "is that all?" then I'd be inclined to pull the whole scheme from the ungrateful lot of you - and maybe cut the lunch break by 15 minutes too, just to teach some manners. On the other hand, maybe I'd just be taking notes of who is working for the company and who is working just for themselves (in the case of redundancies becoming necessary).

(drawbridge raised for impending attack)

jor el

This is a 6 year old thread, let it go.