The Headhunting Industry - A View From the Outside
Upon our staffing agency being approached by new clients, many of the inquiring prospects want to know the generalities as to how headhunters work, how they charge, how they find their job applicants, what their employment guarantees are and what the exact process is to get a search started. Just as in any other industry, every firm has their own policies and ways as to how they execute. Conversely, the variation of answers referencing the aforementioned questions are not all to great in the recruitment business.
Below, you will find some more comprehensive responses to the common inquiries first time users of headhunting services often have. Again, I must stress that the answers are generalities, though still will prove to be of use to any company seeking staffing services.
The Typical Ways That Recruiters Find Their Applicants
Recruiters find their applicants via numerous avenues....
The Different Ways That Recruiters and Headhunters Charge Their Clients
Contingency vs. Retained Fee Agreements: the two various ways that recruiters and headhunters charge for their services.
1. Contingency Fee Agreements
A contingency fee agreement is when a hiring company a.k.a. the client pays the headhunting organization a percentage of the employee's base salary (typically 25%) upon the individual being staffed by the organization. Essentially, the recruiter does not get paid unless they produce. On paper, this sounds great, correct?
The only problem with this is that many of the top-notch search firms will not work with companies that either are working with a multitude of recruitment agencies on a pure contingency fee bases or that are not willing to sign a retained fee agreement. Sometimes contingency contracts work out fine, other times it becomes a "you get what you pay for," ordeal.
2. Retained Fee Agreements
Retained fee agreements are also referred to as "exclusive agreements" because, upon signing the contract, the recruitment client is bound to a certain amount of guaranteed money. While some shy away from this form of staffing agreement, it is a viable option for the firms that find the right recruiter and wish to have a dedicated team of high compensated, highly competent individuals working with them on almost an hourly basis.
Just like contingency fee contracts, there are potential downfalls to the "exclusive" or retained contract. For instance, if a company picks the wrong recruiter with whom to ink a contract with, that company is set to lose a good amount of money.
Various Industry Employment and Staffing Guarantees
Upon paying a good amount of money to a recruiter,....
Searching for headhunter or want to become a Singapore headhunters, visit Recruitplus today
Upon our staffing agency being approached by new clients, many of the inquiring prospects want to know the generalities as to how headhunters work, how they charge, how they find their job applicants, what their employment guarantees are and what the exact process is to get a search started. Just as in any other industry, every firm has their own policies and ways as to how they execute. Conversely, the variation of answers referencing the aforementioned questions are not all to great in the recruitment business.
Below, you will find some more comprehensive responses to the common inquiries first time users of headhunting services often have. Again, I must stress that the answers are generalities, though still will prove to be of use to any company seeking staffing services.
The Typical Ways That Recruiters Find Their Applicants
Recruiters find their applicants via numerous avenues....
The Different Ways That Recruiters and Headhunters Charge Their Clients
Contingency vs. Retained Fee Agreements: the two various ways that recruiters and headhunters charge for their services.
1. Contingency Fee Agreements
A contingency fee agreement is when a hiring company a.k.a. the client pays the headhunting organization a percentage of the employee's base salary (typically 25%) upon the individual being staffed by the organization. Essentially, the recruiter does not get paid unless they produce. On paper, this sounds great, correct?
The only problem with this is that many of the top-notch search firms will not work with companies that either are working with a multitude of recruitment agencies on a pure contingency fee bases or that are not willing to sign a retained fee agreement. Sometimes contingency contracts work out fine, other times it becomes a "you get what you pay for," ordeal.
2. Retained Fee Agreements
Retained fee agreements are also referred to as "exclusive agreements" because, upon signing the contract, the recruitment client is bound to a certain amount of guaranteed money. While some shy away from this form of staffing agreement, it is a viable option for the firms that find the right recruiter and wish to have a dedicated team of high compensated, highly competent individuals working with them on almost an hourly basis.
Just like contingency fee contracts, there are potential downfalls to the "exclusive" or retained contract. For instance, if a company picks the wrong recruiter with whom to ink a contract with, that company is set to lose a good amount of money.
Various Industry Employment and Staffing Guarantees
Upon paying a good amount of money to a recruiter,....
Searching for headhunter or want to become a Singapore headhunters, visit Recruitplus today
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