Recruitment agencies pricing

kkelly77

Does anyone know what pricing system recruitment agencies use when finding potential employees for permanent positions?

Is it a flat fee, % of salary offered? Also, is there an refund option if the employee leaves or doesn't work out within a certain time frame? Thanks for the help.

K

hzhang

The pricing varies, I know some agent charges 15% of the annual salary to the employer. Not sure what the terms & conditions when employee leaves.

Stheno

It can be up to 30% depending on the position

kkelly77

Stheno wrote: »

It can be up to 30% depending on the position

30%!!! Wow, that's a lot higher than I thought. With the huge number of unemployed and few jobs going I thought agencies rates would come down.

The person I know who may be hiring doesn't have the the time to advertise/vet candidates and job spec is quite specific, so agency involvement may be the only option.

delta_bravo

It depends really. I was working in a call centre job for a bank through a recruitment agency. I was getting €12.50 an hour at the time but the bank were actually getting billed €19 an hour for my services. They didn't tell me this but I found out after a few months. It was really annoying to have that money skimmed off but the advantage to the company is that they can fire you easily and dont need to worry about the hassle of taking you on as a full time member of staf and then worrying about redundancy and all that.

kkelly77

delta_bravo wrote: »

It depends really. I was working in a call centre job for a bank through a recruitment agency. I was getting €12.50 an hour at the time but the bank were actually getting billed €19 an hour for my services. They didn't tell me this but I found out after a few months. It was really annoying to have that money skimmed off but the advantage to the company is that they can fire you easily and dont need to worry about the hassle of taking you on as a full time member of staf and then worrying about redundancy and all that.

Disposable employees :rolleyes:

NoseyMike2010

With o neill and brennan about 7 years ago i was on about €14 an hour and they charged the construction company €29. We saw the offical document one Saturday we were in. Was shell shocked as u can imagine!!! :eek:

x in the city

recruitment companies are generally a waste, how they get any money defies belief.

the_syco

kkelly77 wrote: »

The person I know who may be hiring doesn't have the the time to advertise/vet candidates and job spec is quite specific, so agency involvement may be the only option.

Just a word of warning: check the agency out. Some are good for only certain sectors, and some will give you 2000 CV's they thought would suit the job as they have the word "computer" in it.

KarlDrake

delta_bravo wrote: »

It depends really. I was working in a call centre job for a bank through a recruitment agency. I was getting €12.50 an hour at the time but the bank were actually getting billed €19 an hour for my services. They didn't tell me this but I found out after a few months. It was really annoying to have that money skimmed off but the advantage to the company is that they can fire you easily and dont need to worry about the hassle of taking you on as a full time member of staf and then worrying about redundancy and all that.

If you were on the books of the agency and they were actually payrolling you, then it's likely that they were paying the associated costs, employers PRSI etc which would bring your hourly costs including pay to around 15.63, which if they were charging 19 means an hourly margin on your services of approx: 3.37. Which is not too bad.

If.

amcalester

delta_bravo wrote: »

It depends really. I was working in a call centre job for a bank through a recruitment agency. I was getting €12.50 an hour at the time but the bank were actually getting billed €19 an hour for my services. They didn't tell me this but I found out after a few months. It was really annoying to have that money skimmed off but the advantage to the company is that they can fire you easily and dont need to worry about the hassle of taking you on as a full time member of staf and then worrying about redundancy and all that.

NoseyMike2010 wrote: »

With o neill and brennan about 7 years ago i was on about €14 an hour and they charged the construction company €29. We saw the offical document one Saturday we were in. Was shell shocked as u can imagine!!! :eek:

If you were happy with your hourly wage what does it matter how much the recruitment company were billing the bank/construction company. You agreed to work for a hourly wage and they paid that.

Pricing structure for recruitment companies normally depends on the salary, the higher the salary the higher the percentage fee. In terms of the person leaving, if they leave within a set time the recruitment company will try to replace the candidate but refunds are tough to come by.

Denerick

I still don't understand the point of agencies. Like crows, eating our carcusses for little or no exertion on their own end. Immoral, frankly.

3DataModem

Two jobs ago agency got €37k for me. Nice work if you can get it.

Eoin

Denerick wrote: »

I still don't understand the point of agencies. Like crows, eating our carcusses for little or no exertion on their own end. Immoral, frankly.

I can definitely see the point of them - if they actually did what should be expected of them.

It's hardly "immoral" though. Companies aren't required to use agencies; it's their choice. They can just as easily advertise vacancies, vet CVs, do reference checks etc. If agencies did that properly, then I can see their value.

But as I said, I was very annoyed to get a badly written 12 page CV through an agency. No agency should have thought that was acceptable.

Mrs OBumble

Denerick wrote: »

I still don't understand the point of agencies. Like crows, eating our carcusses for little or no exertion on their own end. Immoral, frankly.

You've clearly never been on the receiving end of 300 CVs.

donkey balls

Having got two jobs in mgmt through an agency there is good and bad since been let go from my full time job two&bit years ago,I have been doing agency work again some are good others really bad.
What I have noticed lately is agencies are under cutting each other to get the work which means lower wages for the employees.

Will_H

Try these guys: http://www.webrecruitireland.com/

I believe Richard Elliott is the guy to speak with. I have no affiliation with them, nor have I used them but their rates look very good....(these are from last year and therefore may have changed since then.)

€/£ 495 - for salaries up to €/£ 19,999
€/£ 695 - for salaries from €/£ 20,000 - €/£ 49,999
€/£ 995 - for salaries €/£ 50,000 and above

marley123

OP Agencies will charge a % of Annual Salary - the higher the Salary the higher the Fee - however most Agencies will negotiate.
There will generally be a 3mth clause in place if the Candidate leaves you would be entitled to % refund of the placement fee or the agency will try to replace the candidate for no charge at all.

Webrecruit are inbetween a Jobs board & a recruitment agency - they basically advertise their clients vacancies across a large number of Jobs boards, fire over the CV's they think may suit the role - as far as I know they still have a no hire no fee rule in place - however they don't interview or ref check etc...

If you are looking for an Agency recomendation drop me a PM & may be able to point you in the right direction & before any one shoots me down I DONT work for a recruitment agency.

pow wow

The clawback period is very often 12 months on a sliding scale so if the candidate leaves within a year you get a proportion of the placement fee back.

kkelly77

marley123 wrote: »

OP Agencies will charge a % of Annual Salary - the higher the Salary the higher the Fee - however most Agencies will negotiate.
There will generally be a 3mth clause in place if the Candidate leaves you would be entitled to % refund of the placement fee or the agency will try to replace the candidate for no charge at all.

This does seem to be the general pricing structure after being in touch with several agencies. However, even though they were telling me this was the price, they all told me it's all negotiable. Buyers market I assume.