Recruitment Agencies- how does it work?
Posted by Appropriate_Star5289@reddit | AskUK | View on Reddit | 26 comments
Hi. I’ve been approached by a recruitment agency for a grad job that aligns with my degree and I think could advance my career quite a bit. The only think I’m slightly irked about, though, is the fact that it is an agency putting me through. If successful, would they take a percentage of my salary, or do they charge the employer? If not, how do they make money? Would be great to hear from someone who has had similar experience. Thanks.
xiaoi_@reddit
Nah they don't take anything from your salary. In most cases (esp grad roles), the company hiring you pays the recruitment agency a fee once you get placed. So your salary is just whatever the employer offers, nothing gets skimmed off later. my sister worked at aspire people in education space so i've seen a bit of how it runs, it's basically all about matching people quickly and filling roles. it's pretty straightforward: the agency just sits in the middle, finds candidates, pushes them forward, and if it works out they get paid by the employer.
Hot_Elephant5048@reddit
The employer pays them, never you.
It will either be a pre-agreed fee or a percentage of the salary amount.
It will have no affect on you or your pay.
Backlists@reddit
Actually, if their commission is based on salary, it can mean they argue your case for increased pay.
Temporary-Zebra97@reddit
Happens fairly often, I will see a contract advertised at say £500 pd, then either up front the RC will say I will put you in at £575 or after the interview say I got you £575.
Hot_Elephant5048@reddit
For an experienced hire yes, but not at all likely for a grad level role, which OP is going for.
Company must not have an internal hiring function as grad recruitment is basic but higher in volume and salaries are typically entry level and set, and wil involve no negotiation.
New_Crow_8206@reddit
They will have an agreement with the employer to receive a percentage of your first years salary, normally 20-30%.
Just be a little wary of recruiters in general, its very common that they do not actually have an agreement with the employer and are just speculatively sending yiur CV. Whilst this may seem harmless, it can prevent you from getting a job there because if they employ you by any other root (directly or through another agency) they will still need to pay a fee to this agent that they may be unwilling to do.
Appropriate_Star5289@reddit (OP)
I was wondering about that. I suppose a viable alternative would be applying to the firm directly. I’m slightly wary about it because the recruiter hasn’t actually told me the name of the firm. However it’s not something I’m going to lose sleep over because the job is in my uni city and I was already planning to move back home again. Worth a try I suppose though
Ulver__@reddit
Don’t go direct, working with a good agent is useful because they can coach you through it, give you more information about the role, the interviewers etc and if you are offered they can help negotiate it. I hire quite a few people and almost exclusively use my trusted recruiters as they tend to find better people than the crapshoot of direct applicants. That’s in senior professional services roles so your mileage may vary. Also if the agent is putting you forward then your cv will almost certainly get in front of the hiring manager whereas direct applications tend to be filtered by useless internal recruitment practitioners and/or ai.
postbox134@reddit
The recruiter won't tell you the firm because they don't want you going around them
Confudled_Contractor@reddit
They will take a fee from the employer. Usually a % of salary. This doesn’t affect your potential pay.
Appropriate_Star5289@reddit (OP)
Interesting, thank you. So essentially they would get 10% of what my salary is rather than what I earn if that makes sense?
Spicymargx@reddit
They will get a fee on top of your salary, proportionate to the salary you earn. The percentage depends on the agency and their contract with your employer. Your salary isn’t affected by the fee and if that is ever suggested to you by a recruiter it is illegal.
postbox134@reddit
Yes that's the finders fee typically, unless they have some other arrangement. That means you can feel free to ask for a higher salary, as the more you're paid the more they get.
Usually there's some time period you have to be in the job before they get the fee so it has to be a good fit.
AnonymousTimewaster@reddit
Wife is a recruiter. Fees vary from 5-30% depending on industry, role etc. Typically around 15% though.
The clearing period is usually just whatever the probation period is, which is usually 3-6 months.
spikewilliams2@reddit
Yes they are paid a percentage which is good for you as they will fight your corner in the salary negotiation.
You will find the agency will phone you up often for a chat to see how it is going if you take the job. This will stop after 8 weeks when they get their pay. The phoning isn't friendly, it's testing the waters to see if you need convincing to stay the 8 weeks.
IntelligentCitron917@reddit
Many companies these days use agencies to do all the leg work for them. Instead of them having to interview candidates etc recruitment agencies will have several potentially suitable people on their lists, they approach those who are deemed most valuable to the company. Almost like in reverse, so the jobs get offered to those who might be interested rather than 100's applying
They are paid by the company searching for the candidate. Often the recruiter can negotiate a salary on your behalf too. If you have the necessary skills you can always suggest your worth. They can approach the company for you before either of you even know about each other.
It's a fairly common practise these days especially for particular sectors or specialised posts. This is when some people get head hunted and approached by agencies even if they aren't looking for new opportunities. My own partner has been approached, and moved jobs several times through such agencies.
Good luck with the position
spikewilliams2@reddit
I found the agencies were throwing shit at the wall to see what sticks when my last place advertised for my replacement. The one they did take on was let go after his 3 month probation because he was shit.
Winston_Carbuncle@reddit
Like anything there are loads of shit agencies. Specialists with years of experience in a specific industry is what you want.
Re a bad hire, the responsibility for that is largely on those invofked in the interview process and the decision to hire.
A recruiter matches suitability of experience and character but only to a point. It's not a replacement for being responsible for and selective of who you bring into your organisation.
ResplendentBear@reddit
Oh you sweet summer child.
Whilst I'm tempted to say they earn 50% of your salary for the rest of your life, it's actually the second thing. The agency is paid a fee. Generally in the ballpark of 15%* of your salary by the employer for finding the miracle of future potential that is your good self.
That's it. If you don't stay there for X months sometimes they have to repay some/all of the fee. Otherwise, that's how the recruitment world works.
(Note to pedants, if you have examples of it being 10% or 20% I absolutely do not care).
british_heretic@reddit
You could answer the question without the condescending tone.
mtmp40k@reddit
They take a fixed fee. From the employer.
Sometimes they get less if you don’t pass probation.
They make their money by dealing with many more people than you imagine
TehDragonGuy@reddit
I've got both of my jobs so far through recruiters. They may be shitty, but anecdotally, they're very good at getting you interviews. There's no reason whatsoever to not apply.
scorcherchar@reddit
Hiring someone takes surprisingly long. Hundreds of hours sometimes. You need to post a job advert to lots of job boards then filter down the majority of candidates before doing interviews. Some people don't have the skills others cost too much.
Recruiters do the first stages of the job, the most boring and time intensive for a fee. Typically they take a 5-10% of your salary when you are hired then another 5-10% later (after your notice or after a year). Fee structures vary though and some have clawbacks if you dont pass your notice.
Ultimately you arent paying the fee. If hiring business dont pay recruiters they have to pay in staff time which is often much more. This is why businesses offer money, often thousands for personal recommendations of staff from other staff.
hallerz87@reddit
They charge the employer for sourcing employees. They get you employed; they get paid. No reason to be irked; it’s how a lot of people find jobs
EvilRobotSteve@reddit
Check the job thoroughly. Ask lots of questions at the interview and don’t believe a word the agency told you about it until someone from the company repeats it.
I was scammed by a recruitment agency into taking a telesales role, and I’m not the only one who was lied to by one. They get paid for every successful applicant, and it’s worth considering the following question; if the job is so good, then why do they need to pay for the services of an agency in order to find people to fill it? It’s usually because they are jobs with a high turnover.
I’m sure there are some legit offers buried in the lies and I hope you have one of them, I’m not saying you should refuse the offer out of hand, I just recommend caution and I do so from a place of experience.
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