Do recruiters have a benefit to paying you less or undercutting your wage?

I'm just wondering if recruiters have any personal incentive to try to get you to accept a lower wage?

Similar to how a used car salesman has flexibility in price, but pretends he doesn't, and tries to get you to pay as much as possible to make his commission higher.

Is it similar in the recruiter field? I'll just throw some numbers out for example. Say the company is paying the recruitment agency $25 an hour, and the recruitment agency "can" pay the candidate up to $20. Will the recruiter try to get somebody in for $17-$18, in order to make some sort of bonus for himself? What if there is a candidate who is desperate for a job, or just doesn't know any better, and has told the recruitment agency they would work for $10 an hour. Would the recruiter attempt to hire that employee for $10, even if there was a much better qualified candidate that needs $20 an hour, just for the sake of making himself a nice big bonus?

I'm wondering things works this way or not, so I know if I need to really be alert and try to negotiate any offers, or if its safe to take them at face value.

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Comments

MeanDrunkR2D2

Short answer... Yes.

Long answer... Heeeeeyyyyylllllll yeeeeeeeeeeessssssssssss.

Their profits rely on them finding the best talent that will get the job for the least amount of pay. Sometimes they will tell you their "Max" pay, but if you get selected and offered the job, they really like you and will actually go and pay you slightly more than the "max" pay as they'd rather get some money, then no money.

Now, they'll probably present both of you for the position, but may try to push the hiring company that the less expensive person may be the better fit. They'll say something to the effect that so and so may be more inclined to stay longer than the other as he/she will be looking for a bigger raise in a year or less to continue working.

networker050184

Depends on the situation I would think. If you are going to be working as a contractor through the agency which is paid a flat amount, then yeah they probably gain from you getting paid less. They really aren't going to want to put someone unskilled in there that does a bad job and makes the company lose the contract though.

If they are placing you in a full time role and getting a flat fee then what you get paid really doesn't matter to them as far as what they make.

techfiend

Is it rude to ask, if they are getting a flat fee?

This is relevant to me right now as a recruiter is pushing an L1-L2 NOC tech position at below average to average maximum and the recruiter told me maybe we can work out a higher wage, without me commenting after the initial range.

BradleyHU

This is why you shouldnt accept anything less than what is in your target range....

MeanDrunkR2D2

Honestly, if they say they can go higher, go into it with a set amount in your head that you won't take less. If the company really likes and wants you, the recruiter will make it happen as long as they get a profit out of it.

Danielm7

MeanDrunkR2D2 wrote: »

Honestly, if they say they can go higher, go into it with a set amount in your head that you won't take less. If the company really likes and wants you, the recruiter will make it happen as long as they get a profit out of it.

Yep, I just went through a recruiter and I got them to push for 10% above the max of their range because the company really wanted me. The recruiting company ended up taking far less than their regular cut just to make the deal happen.

techfiend

This one is $12-15. The range I've been seeing is $15-18. Should I start at $20 and then see what happens from there? I'd honestly take $15 but I don't want to leave money on the table. $12 seems too low for a entry level position that requires a degree and certifications Add in the long hours and long commute and $15 starts sounding low too.

iAnonymity

I've been dealing with this for the last 4 months, I was hired at 16, no insurance, no PTO, etc, if you want PTO and a insurance package then its less per hour. Now I've gained experience and people that have the same role as me, are making around 20-24 but have a different vendor, different recruiters so their flat rate will be significantly higher. I've heard rule of thumb is whatever rate they want to hire you at, as a contractor, they make double. So I bill my hours to XXX vendor, they in turn bill to the company I work for as double my hourly rate. For the past 4 months I can't get a raise so it's a big mess.

philz1982

MeanDrunkR2D2 wrote: »

Short answer... Yes.

Long answer... Heeeeeyyyyylllllll yeeeeeeeeeeessssssssssss.

Their profits rely on them finding the best talent that will get the job for the least amount of pay. Sometimes they will tell you their "Max" pay, but if you get selected and offered the job, they really like you and will actually go and pay you slightly more than the "max" pay as they'd rather get some money, then no money.

Now, they'll probably present both of you for the position, but may try to push the hiring company that the less expensive person may be the better fit. They'll say something to the effect that so and so may be more inclined to stay longer than the other as he/she will be looking for a bigger raise in a year or less to continue working.

This is exactly why I find the company and the hiring manager through LinkedIn and connect to them prior to applying for a job. For example, if it says you will report to the director of ITSEC then lookup the title Director of ITSEC at xyz company and connect via LinkedIn. I often approach by asking for clarification around his/her expectations for the role before I waster their and I's time applying. I have yet to have someone not respond to me when I approach it that way.