Recruitment Agencies

Recruitment Agencies

If you have ever wondered about recruitment agencies, here is an inside scoop. Whether you are an employer or an employee, there are things you should know.

As the employer, one concern is cost. Recruitment agencies have various fee structuring. In order to receive qualified resumes of candidates for a position, you can expect to pay a percentage of the first year's salary. For example; if the salary of the specific job you need filled pays $80,000.00 per year and the recruitment agency's fee is 30%, your cost to do the search is $24,000.00. Recruitment agencies typically range between 20%-35%. This is the basic "scoop". From here, agencies differentiate themselves in their pay structuring and this is crucial to the employer.

The two types of recruitment agencies are referred to as contingency search and executive search. Quite simply, it is quantity versus quality. A contingency search might provide you with a larger quantity of resumes, however, an exclusive executive search will provide you with higher quality resumes.

For example; an employer requiring an IT specialist with specific skills would consider using a contingency recruitment agency in order to narrow down resumes containing only the specific skills desired. At the same cost of posting an advertisement for the job opening, the contingency recruitment agency would ensure the employer receives only IT specialists matching the qualifications, thus narrowing the search down from an otherwise tedious flood of ad responders. The employer can easily select which candidates to schedule for interviews from these resumes received. This type of recruitment agency charges a flat percentage of the compensation for the position after a hire is completed.

Now, the scoop on executive search recruitment agencies. An employer would "hire" an executive search recruitment agency to find a candidate for a very specific, usually high level, position. This agency provides an in depth search for the best qualified candidate. There is a retainer charged, which can be taken off the total fee. This retainer includes a meeting with the hiring manager(s), development of a position description, and guarantees the recruitment agency has the exclusive search. A relationship is created, so to speak. These executive search recruitment agencies typically meet or talk with each candidate extensively. Profiles are written and submitted along with the resumes explaining important information such as reasons they left each job, and may include personal data. Once a qualified candidate is selected, interviews are scheduled and the hiring process begins continuing through salary negotiation. In essence, these agencies work as an extension of the employer.

As an employer, knowledge is valuable. Know what recruitment agencies charge, and how they expect to be paid. There are different fee structures that should be agreed upon by both parties before the search begins. An employer should expect a guarantee on the placement whether it is a contingency or an executive recruitment agency of one year from the date of hire.

The scoop for the employee is simple. Recruitment agencies do not typically charge employees, or candidates, any fees. Confidentiality is the major concern for a candidate, especially if he or she is gainfully employed. Keep in mind, recruitment agencies do not find job seekers positions. They are working for clients and are in search of candidates. Submitting your resume to a recruitment agency does not mean they will find you a job, however, it does put your name in a database for future reference. When a recruitment agency calls an employee/candidate, neither person is obligated to commit. It would behoove any employer or employee to research any recruitment agencies before working with them.

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'The two types of recruitment agencies are referred to as contingency search and executive search. A contingency search might provide you with a larger quantity of resumes, however, an exclusive executive search will provide you with higher quality resumes.'