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Direct Placement Fees
Recruiting & Staffing
Direct Placement Fees
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We have an opening for a lead engineer and have sought assistance from various services. I'm curious what fees others are being charged for direct placements. Any information will be much appreciated.
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Forums » Topic Forums » Recruiting & Staffing » Direct Placement Fees
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Direct Placement Fees
posted at 3/3/2007 6:51 AM EST
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Posts: 3870
First: 2/12/2002 Last: 11/2/2009 |
It's variable and depends on a lot of things. The agency itself, the type of engineer, location, etc.
For a degreed and experienced engineer, expect to pay anywhere between 15% and 30% of annual salary. If it's a low demand skill, 15 - 20% would be typical. High demand will be 20% or higher. |
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Direct Placement Fees
posted at 3/8/2007 4:19 AM EST
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Posts: 80
First: 11/17/2006 Last: 7/13/2010 |
The contingency rates were pretty much nailed. If you're going to pay out, make sure you avail yourself of the full services the recruiter can offer. Don't treat them as a resume source. Make sure they understand the ideal candidate profile and what the important core characteristics are that you are looking for. Then make sure they only send you resumes and candidates that match.
The candidates should be pre-screened for not only the skill sets, but for your work environment, general compensation range, location of work, etc. You should know all the potential issues going in, and if you have a standard set of reference checking questions you like to use, I'd recommend giving them to the recruiter and making sure they are all reference checked before this person talks to any work managers. Some recruiters are trained in the "churn and burn" style, where they go for volume and try to close deals with minimal effort. Shut them down quickly. If you find one who is reliable, attentive and productive, stick with that person and maybe one other on a particular search. |
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Direct Placement Fees
posted at 3/8/2007 4:23 AM EST
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Posts: 3870
First: 2/12/2002 Last: 11/2/2009 |
To add to the excellent points above, do a google search for recruiters who specialize in the engineering field you need. There is a lot of sleaze in recruiting since there's a lot of money at stake, so there's a lot of the "say anthing, do anything" ethic to get business. Generally speaking, a smaller boutique firm will give you better service. |
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Direct Placement Fees
posted at 3/21/2007 7:10 AM EDT
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Posts: 1
First: 3/21/2007 Last: 3/21/2007 |
jamespsullivan, i am not really sure where you are located, but I am a recruiting manager for a staffing company in Michigan and we just started our new program where we charge only 8% of total first year compensation. we are a small firm, and this is why we are able to charge such a low rate. we don't have a lot of the overhead that the large staffing firms have. we run a lot leaner and meaner. |
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Direct Placement Fees
posted at 3/22/2007 2:56 AM EDT
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Posts: 22
First: 4/5/2006 Last: 8/14/2008 |
I am the Corporate Account Manager for a medium sized Recruiting firm. We do sales recruiting mostly however I can give you some insight on specific fees for relative searches. I know that we charge a higher fee for a longer term replacement guarentee ie 25% for contingent search for 3 months or 33% for a contingent search for 12 months. In addition to skill set, guarentee, and specialty other factors that may influence % are overall value of the search for example we have a minimum search value of $10K that we will not go below. Therefore you may expect to find higher percentages on lower salaried positions. If you have any additional questions about search firm pricing either in the contingent or retained world please feel free to drop me a line @ ross@priority-sales.com |
Forums » Topic Forums » Recruiting & Staffing » Direct Placement Fees
