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Headhunters use this same sort of model. For example, take a look at the finance industry. They interview talented, young people with 2 to 5 years of experience
by bentigg 12y ago
Headhunters use this same sort of model. For example, take a look at the finance industry. They interview talented, young people with 2 to 5 years of experience for specialized positions (private equity, investment banking, corporate finance), then try to match up that person with one of the positions in their database. The potential new hire isn't charged a dime. The headhunter charges the hiring firm a percent of the new hire's starting salary (30% to 50%).
The assumption behind this model is that:
1) Companies are willing to pay for the best talent
2) No in-house capability to recruit or choose to spend their time on the core function of their business rather than screen individuals
3) (Salary + placement fee) > cost to recruit that person themselves