How Much Does a Recruiter Cost?
For job seekers, there is no direct cost to working with a recruiter. You don’t pay us. You simply need to be ready to invest the time and resources into preparing to bring all you’ve got to the job search process and interviews that follow. We provide guidance every step of the way.
For employers, there is no cost (or risk) to working with a recruiter who works on a contingency basis, otherwise known as a “contingent recruiter”. The fee only kicks in when he or she finds you that superstar to join your team. The amount and timing of that fee can depend on several factors but industry standard is anywhere from eighteen to thirty percent of an employee’s first-year salary.
When it comes to more senior positions, a retained search may be required, where a company will pay a recruiter compensation installments when pre-determined milestones are met. This type of search creates another level of accountability, gives employers access to the best candidates and strengthens the company’s position with them.
All that to say, the price and agreement must be right to ensure a compatible employer-recruiter partnership that leads to successful results. But here’s what I ask employers trying to decide whether they should go with a recruiter or not: Can you afford not to make the investment when you’re operating at less than 100 percent with open headcounts responsible for the bottom-line?
Here are three ways to look at it.
Save Time and Resources
As an employer, you probably don’t have the time, nor can you spare the staff, to do the legwork required to find ideal candidates to fill open positions. How can you be expected to be successful at your job and sort through piles of unqualified resumes at the same time? Job descriptions need to be written and publicized, resumes (potentially hundreds) need to be reviewed, potential applicants need to be screened and interviews need to be scheduled and conducted… and there’s still the job offer and contract to negotiate. An experienced and skilled recruiter will help manage this process while you and your staff can stay focused on production and performance.
Better Access to the Right Talent
Recruiters recruit day in and day out. We maintain, and have access to, a wide network of both “active” and “passive” candidates (professionals not actively searching for a new job but willing to explore opportunities) you might not otherwise meet. It’s our job to find these qualified professionals for you and it is immensely rewarding when we do!
A recruiter doesn’t require in-house training and an annual salary and in some cases our fee equates to or is less than what it would cost to bring someone in on a monthly retainer to do the hiring. We are an external resource with the expertise to stay focused on the end-goal, keep the process objective and find the best candidate for the job, aligned with your mission and able to join the team and hit the ground running…
… And the investment you made with that recruiter will have been worth every penny… and more.