How does recruitment agencies make their money? |
Posted: January 29, 2019 |
It is a common thought that the recruitment agencies are only out there to make money and they are not doing anything. Well, this is totally wrong! Let us find out what the truth is and how does a recruitment agency make their money. So, that you will come to know about some real facts about the recruitment agency. If somebody is working for a recruitment agency, it is quite tough for the person to do the job. This is because of the fact that there are lots of recruitment agencies out there who are in competition with each other, and by the end of the day, it is all about the profit. The main concern when you are going to hire a recruitment agency is how much that specific agency is going to make from your company. Or what is the amount you will have to pay to them? There are many people who are thinking that the recruitment agency will only take the money and will not do anything good for them. This is the reason they are afraid of hiring a recruitment agency for their hiring process. If you are curious to find that if you are currently paying too much for the service, or if you are concerned that if the recruitment agency will not take much from you. Maybe you are questioning that if you are receiving the correct level of service from the recruitment agency. Or maybe in the end you are just curious about the fact that how does the recruitment agencies earn or how much. Then, stay tuned to this article as you are going to get all your answers cleared here. There are basically two ways of recruitment agencies making their money from the companies and what are all the other additional ways that they get the money. So, as it is said earlier, here are the two ways the recruitment agencies are making their money:
We are going to explain these two ways so that you will understand how these recruitment agencies are going to earn money from you. Let us have a look at the temporary placements first:
They are going to make money from the hiring company the way that they are going to set an hourly rate from placing the temporary worker in your company. For example, if you want a worker for a day, or maybe for a year. Now, how much a candidate is going to get paid, then this agency is going to add a markup rate to the salary of that person. This will help them cover the cost of finding the right candidate for the specific job role. Let us understand all of this with a simple example, see, if the hiring company is paying $20 for an hour, now from this a certain amount will go to the recruitment agency. All of the national insurance costs, paying taxes and the bank charges will also be included in the package. So, this is how the recruitment agency is making the money out of your money.
If you are asking the recruitment agency for the permanent placement then it means that this will be the easy money for the recruitment agency. Let us know, that how much a recruitment agency is going to make out of the permanent placement. Candcsearch said the first thing the recruitment agency is going to work on is the salary of the candidate when you are going to call them for the permanent placement. The percentage of the salary of the employee will be then calculated, and they are going to charge a certain amount out of the salary. Most of the agencies are going to charge the 20% out of the salary of the employee if you are doing it for permanent placement. Now, these were the two ways with which the recruitment agencies are making their money. Now, let us know, what the other ways of making money are. The other ways All the companies out there, want to make as much profit as possible. There is no doubt in this fact, so the recruitment agency will not offer only the hiring services, there are also some other services they are offering. If they want to make their business survive they would need to do a lot for it. There are also a few more services a recruitment agency is offering, here they are:
So, now we know the ways with which the recruitment agency make their money. There are many staffing agencies that are working on a monthly salary with many companies. The companies pay a monthly installment of the amount of the salary, to the recruitment agency. The recruitment agencies are working for the benefit of the companies so they will work hard to get the highest salary person. You will see how high the salary of the employee is, more the chances of getting money for the recruitment agency. If you want to get job on your own or want to get it from another recruiter then the recruitment agency will not run behind your back. You may get black labeled by the employment company and no other company will do services for you in this case. You need to sign a contract with the recruitment that you will not backstab them in any case and you need to stick to them if they are not failing you. And if they are failing you then you will have to discuss rather than leaving them and going for some other. You will have to be honest with them and you should tell them what you are doing then everything will be fine and they surely are going to help you in future.
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