recruiter

Does anyone know how recruiters make their commission? So many times, thhey call me in for an interview and to fill out paper work when they really "dont have any jobs" at all. SUCH a waste of time.

Would appreciate if someone can tell me why they do this. thanks

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Comments

PPforLife

Good article:

10 Things Employment Recruiters Won't Say - SmartMoney.com

kingslayer

PPforLife wrote: »

Does anyone know how recruiters make their commission? So many times, thhey call me in for an interview and to fill out paper work when they really "dont have any jobs" at all. SUCH a waste of time.

Would appreciate if someone can tell me why they do this. thanks

Typically the company will pay x percent of the employees salary as a recruitment fee and/or the agency will get x amount of the employees monthly salary for an agreed period of time.

The reason they call you in is because they want to build up their database. The bigger their client database the more likely they are to place someone in a role.

odysseyelite

In a contract to hire situation the firm gets so much per hour from the company usually it is double of what you are getting.

In my case the dumb staffing company sent me the rate letter instead of my boss. They get 44 per hour. I get 25. When they called me to offer me the job they offered me 24, which was way less than I told them day one, I said I wanted 55-60k so 28 per hour would have been right. When I said I wanted 25, they said they would ask the client. Minutes later I had a call back. I should have asked for 26 to be closer to my low end.

The staffing company sometimes gets a hire on fee. In my case, if I got hired on before the length of the contract 4.5 months they got a percentage, if after 4.5 months I got hired they got no addition fee.

A friend of mine recuits for another sector. She gets a 30% of first year salary of her placements. I know one day she made 25k on one deal.

Verruckt

Recruiters are a waste of time.

Bokeh

All said here is true. I did the recruiting gig for a year.

Usually on a permanent placement, most agencies get 1% per thousand of the first year salary up to a cap of around 35%. So a 60k job is going to land the company about 21k. The recruiter will probably see 25-30% of that. Now if it is with another recruiter, they split the commission. The way to make the real money is with their job opening and their own candidate. That's why folks will call you and try to get you in. Build up their clientele.

For a temp job, the billing rate is usually double of what they are offering a potential client.

Since most recruiters work draw against commission, it is in their best interest to have as many temp people on their books as possible, while searching for that elusive permanent position.

It is a very cut throat business. We had an employer interviewing for an engineer position in our office. He liked one candidate, and made an offer. HR calls back the next day saying we wont pay a fee, we already saw his resume. AHA - but did you ever interview him? Umm, no I (HR) didnt think he was qualified. The engineering manager had to have a come to Jesus talk with her about not passing on his resume in the first place and now they have to pay a fee!