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Recruitment Secret 'Recruiters Charge Candidates' and What You Should Do To Succeed

Updated on October 14, 2010

I have been a recruiter for 5 years now and am in a good position to talk about these secrets.

A word of caution : Not all recruiters, executive search firms or management consultants use these or work like this.  But a lot of them do.

As a norm companies pay the recruiters according to the following slabs:

1. Entry level - 15 days salary or a minimum amount per hire

2. Mid level - 30 days salary or 8.33% of the annual CTC

3. Senior level or Specialist roles - 12.5% - 25% of the annual CTC

CTC = Cost To Company

There are variations, depending upon the company, the industry, the requirement (urgency

- skill shortage) and the consultant or recruiter, but by and large the above mentioned is followed.

Within the hospitality industry, the payments to consultants or recruiters is particularly low.  Some companies pay about INR 500 or USD 12 per entry level recruitment.

Most other companies like to pay less than INR 1500 or USD 35 for entry level recruitment.

The other problem that recruiters or job consultants face is the credit period.  Most companies pay after 60 days of hire and sometimes 90 days.

This makes the consultants vulnerable.

This makes candidates who pay consultants or recruiters getting pushed.

There are ways that this is done:

  1. The candidate offers to pay 15 days of his/her salary to the consultant/recruiter.
  2. The recruiter/consultant flat out demands a 15 day payment or a set amount for getting the candidate selected.
  3. The recruiter/Consultant runs a training/interview preparation program and charges for the training imparted.

WHAT CAN YOU DO?

As an aspirant, you absolutely want to grow, need a job or are looking for a change.

Here are my suggestions based on where you are on the career ladder

Green - You are a fresher just out of college/ hotel management school.

  • use your school placement services
  • use recruiters only if the placement services fail.
  • more often than not, you can offer to pay and your chances of getting a job increase manifold.

Blue - You have some experience, but there is nothing in it that is extra-ordinary

  • decide the company you want to work with
  • do an internet search (look for job listings, use job search engines) or ask your network for the consultant who recruit for that company
  • offer to pay yourself

Purple - You are a hot-shot. You are doing extremely well and are in a good position with a good company. things can only get better.

  • do not offer to pay
  • refuse to work with consultants who ask you to pay

A general rule-of-thumb for a payment calculator is your 15-Days take home salary.  Divide your monthly salary by 2 and offer to pay it over 3 months to the consultant/recruiter.

Please remember, jobs consultants, recruiters are crucial for your job search.  The fee that they charge from the company is because they can assist and offer valuable services to companies in hiring the right candidate.

Management Recruiters Internationally keep databases of possible candidates and regularly scan for movements and progress.

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