Откровения рекрутёра, часть следующая.

Чувак на все 100% подтверждает то что я уже не раз говорил: австралийские рекрутёры - охуевшие пидарасы поголовно.

I would like to firstly thank the many of you that supported my original post last week. As an ex-agency recruiter, I have seen first hand how these recruitment businesses manipulate and trick people. This industry is like no other! I have hundreds and hundreds stories of deceitful activities that I personally know about that have taken place, and I could seriously write a book about.

My next thread is an informative piece on how recruitment agencies fees work. I had a number of WP users inbox me directly and instead of replying individually, I have posted in here on the forum.

Enjoy the read!
Below is a question I was asked, with my response below.

I'm interested to know how recruitment agencies set their prices. Do they use a fixed percentage or how do they arrive at the figure they wish to charge the client, for their services? Earlier in the thread it was mentioned that the recruiter will typically charge between 10 to 20k to the client for supplying them a candidate.(what types of roles are these? What about low paying roles like Admin workers?) Does the recruiter receive this 10k amount as soon as the client is placed or after 3months? Or are they paid a certain amount each month?

Permanent Placements (Contingent Assignments). Most agencies work on this principle, which is, “no placement, no fee”. Similar mentality as dodgy ambulance chasing lawyers, their slogan is “no win, no fee”, ah the irony!

The higher the salary bracket, the higher the fee.

Agencies will command a placement placement fee from 12% to as high 30% of the total salary package (including super and vehicle). These days the average negotiated fee is at the 15% mark.

Therefore, if a total salary package is $100,000 at a 15% rate, the fee is $15,000 + GST. $50,000 pkg at 15% is a fee at $7,500 + GST, etc.

So, effectively, the more money you get, the more the agency gets. It is in their best interest to up the salary. But recruiters are mercenaries and they will take whatever they can get. 14 grand is still good too you know!

Once the new employee starts, an invoice is sent from the agency. As specified on the terms of business (the contract), the client must pay the invoice within 14 days in order to qualify for the "replacement guarantee". Now they have put pressure on you the candidate to accept the role, now they apply pressure on the client to pay up quickly.

Because let’s face it, if the candidate quits in 30 days and the client still hasn’t paid the bill, the agency has little chance of getting paid.

Sometimes the client pays the bill within 14 days and now they qualify for a “replacement guarantee” should the candidate not work out. The replacement guarantee implies, if the candidate leaves or is terminated within the first three months, the agency will make one free replacement free of charge.

This clause frustrates the client and can get them undone.

Firstly, it is 3 months and 1 day, and the candidate leaves the job. Client approaches the agency for a replacement. “I’m sorry our terms are strictly 3 months, we will not do a replacement”. What a very inflexible approach to business and they have done literally nothing to obtain that fee in the first instance.

This is why you always hear the recruiter say to the candidate that hates a job: “Stick it out for 3 months, and I’ll find you something else”. If they place you again after 3 months, they have made a double fee on you!

When I was a shark, I placed a candidate 3 times in 9 months at 15K a pop. Money for jam as they say!

Secondly, the candidate leaves the employer within the 3 months. The agency has their money and they have no intention of giving it back, why would they? They are now liable to make a replacement. Truthfully, the agency will only now supply crap candidates just to fill the job as they are not going to make money on this one. Again, they will put pressure on the client to take a mediocre candidate. But just say, an amazing candidate comes through the doors and is suitable for a replacement. Why won’t they put that candidate forward? Simple, they will place that candidate with a client that can subsequently charge a fee for.

My advice to clients, when negotiating the terms of business, agree to pay the fee after the 3 month period. That’s one way to eliminate your risk. My personal opinion, is that replacement guarantees need to be at least six months. This will make the recruiter more accountable.

Contract / Temporary placements.

The recruiter obtains a rate from the client and pays the contractor, keeping their margin. I have seen some pure greed in this arrangement. Firstly, the consultant will never disclose to the client what is actually being paid to the contractor and vice versa. The only way both parties will gain this information, is if they communicate their rates with one another.

The agency I worked for was big on margins. On average, a gross profit margin at $30 bucks per hour is the norm. They bully the client to as much as they can squeeze, then they screw the contractor down. I don’t think I’m enlightening anyone here on this method.

As I’ve stated before, there is definitely a trend to move away from agencies, especially in the specialists permanent markets. I was having a chat with my uncle the other day, he is a director for a large engineering firm. He added, “We know who all the good people are in the market, and when we need these people we contact them ourselves.” “There is no point agencies sending us resumes of people we already know about.” And "When they do send us a resume and we have never heard of that person, there is a good reason for that".... Reader, draw your own conclusion on that one!

Temp and Contracts do serve a purpose, because a short term and immediate need has to be filled. For example, a Receptionist goes on holidays for two weeks, the company needs someone to cover at short notice.

Low skilled and volume recruitment in call center and blue collar markets will always be in high demand. This is process driven and low margin recruitment. This can be cost effective for an organisation. For example, Telstra needs 20 call center people for a 6 month contract, and it needs them to start Monday. Agency can do it in a quick turn around time. Internal department may struggle.

My advice to you all, especially to qualified white collar professionals: Build and establish your own networks. This is exactly what recruiters are good at. Candidates are not so good. If tomorrow I lose my job, I know I can get myself a job in a quick turnaround.

For 90% of the time a recruiters a placement is 100% luck! I love it when I hear from a boasting recruiter: “I placed John at this big company” translation: “Off the 100 resumes I flicked, John was the one they picked”