Quote:
Originally Posted by Eric Vail
If headhunters make 25% to 50% of the annual salary of the people they place into jobs, I am in the wrong line of work. This means for each worker they place earning $80,000/year, then they would earn $20,000 to $40,000 for themselves?
I wonder if the employers just raised the wages, if that would be enough to attract the new workers.
I wonder if the % commission proposed is a bit high.
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because of the employee shortage and the offered 90 day guaranted on any hire the 25% + fee is the usual standard. When I was doing it I cut my rate for organizations that used me consistantly or for people that I gave me common hires. But I think the lowest I went was about 15%. Remember when your talking about $20,000 to $40,000 a lot of the dollars are eaten up by advertising testing, and interview time etc. Now some agencies have gone to a 25% fee plus expenses plus advertising and allow the client to set an advertising budget.
It is relatively expensive for organizations to hire on their own, and if they have a bad hiring process that leads to failures then your costs can double and triple in no time.