How To Hire Employees With A Recruitment Agency

Staffing With Recruitment Agencies

If you are an Employer looking for permanent staff, using agencies can be an efficient and cost effective method of recruitment. Do your homework carefully and you can concentrate on what you do best, running your business.

Here are some example questions to ask

How will they charge? - Most agencies these days supply permanent staff on a contingency basis. This is where, you only pay the agency if you select and recruit one of their candidates. The popular term for this is "No placement no fee".

What will they charge? - You need to make sure you understand how much using an agency will cost you. This is normally expressed as a percentage of first year salary. This will depend on a number of factors such as industry, location, level of role etc, but fees can often be between 10% and 30%. You might at first consider this to be rather a lot of money but just think how much its worth to you getting the right candidate with the minimum of fuss.

Is there a rebate structure? - Make sure that you agree to some form of rebate structure. Like it or not, some candidates will start a job and decide that its not for them and leave after a short time. You need to make sure that if this happens you can reclaim some of the fees paid to Recruitment Agency. This is normally done via a rebate structure. A typical example of this would be

If they leave within 4 weeks 80% of fees paid are refunded

If they leave within 8 weeks 50% of fees paid are refunded

If they leave within 12 weeks 20% of fees paid are refunded

However these scales vary between agencies. It is also becoming more common in competitive areas to see 100% refunds if the candidate leaves within 12 weeks.

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