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I am not an expert in this field, but I can tell you this much at least in the US: 1. Most recruiters get paid a percentage of the first year salary. Depending
by jeffmould 12y ago
I am not an expert in this field, but I can tell you this much at least in the US:
1. Most recruiters get paid a percentage of the first year salary. Depending on the position, company, recruiter, etc... that can range from 10-20%. So a recruiter filling a $100K stands to make from $10K to $20K on the one placement.
2. One of the biggest issues in the industry is what they call "back door hires". Essentially this is where the company hires a candidate referred to them by a recruiter, but does not inform the recruiter of the hire, thus avoiding paying the commission. There are numerous reasons this can happen from complete accident to intended result.
3. There are recruiters who specialize in placing very specific levels. The higher up the position = the more niche the recruiter = the higher their fees. A recruiter working for a Fortune 500 company to find a new CEO stands to make significant money. Usually these firms will have a very refined candidate pool already developed that they work from. Probably one of the most premier executive level recruiters is Heidrick & Struggles.
4. It is advantageous to the recruiter to talk to as many people as possible for positions to gain an understanding of who is out there and what their skill set is. Even though you might not be a good fit for the current position, you may be a perfect fit for the next one.
5. For non-executive recruiters it is advantageous to place as many people in positions. These recruiters while not earning the big single commissions, earn on the volume of placements they make. That is why you see the recruiter-spam you see when applying for jobs.