There are various ways that recruitment agencies make their money depending on what your needs are.
Permanent Placement Fees
Standard permanent recruitment fees can range between 15 – 20% of the candidate’s annual salary.
This could be higher sector dependent. This fee is paid to the agency once the candidate has commenced employment. Check the T & C’s as there should be a clause if for whatever reason the placement fails within an agreed timescale. Either you should be refunded a percentage back or the agency has an agreed time limit to source an alternative candidate.
Currently Influx are offering permanent placements set at 10%.
What we find when recruiting on this basis is that when companies put the position out to more than one agency, recruiters may not always be giving you the best person but the easiest, fastest to place within your organisation as they are racing to beat other recruiters. In our opinion this is not the best option. Only putting it out to one possibly two recruitment agencies will allow them to take the time to find that candidate that is most suited to your company.
Temporary Worker Placement Fees
A temporary fee will consist of the basic hourly rate to the candidate, whether they are self employed or PAYE plus additional costs, for example: Employers National Insurance, Holiday Pay, Statutory Sick Pay (SSP), PAYE contributions and Pension contribution) plus the agency mark-up.
The mark-up can vary depending on role, location and sector.
The plus side of employing a temporary worker is that they are the responsibility of the agency. It is the agency’s responsibility to ensure all the above is taken care of eliminating responsibility of the hiring company.
It is not good business ethics for a company to employ a temporary worker whilst they are still employed by the agency on their behalf. The temporary to permanent option below should eliminate the need to ‘poach’ any candidates.
Temporary to Permanent Fees (Temp to Perm)
After a set time frame, there may a requirement where you wish to employ the temporary candidate permanently with your company and that’s great. It means the agency are doing their job properly by giving you the best candidate.
Some agencies will ask for a ‘Transfer Fee’. This should be clarified upfront in their terms. At Influx, if you hire a temporary work from us for a minimum period of 12 weeks then there is no transfer free.
If you have found that ideal agency who you trust to successfully fulfil your roles within your company then you may prefer to pay them a retainer to do so.
Agencies who specialise in your industry can take time to find you that perfect candidate, not only with the right skills but the right ethos that fits in with your company’s culture.
Influx operates on a Subscription Basis. Please see link to our packages currently saving companies like yourself a considerable amount of money.
If you would like further information on how Influx Recruitment can assist you then please give us a call on 01592 645754 or email email@example.com.