How much is the sourcing service charge a consultancy can take from the company in company payout option?
The fee structure of recruitment firms differs from company to company.
A standard cost of 8.33 % of the CTC is levied in a normal/planned/organized hiring procedure, and can go up to 20% for a very senior level profile. At the time of empanelment, each corporation determines its fee structure.
Recruitment agencies operate on a number of scales:
For Entry Level: They charge 8.33%
2 to 4 years: They charge 8.33% Normally, it is 8.33%. Some top firms demand 10% of annual CTC.
Some top firms demand 10% of annual CTC.
Mid senior / Managerial: Varies from 8.33 % to 12%
Senior Management : fees varies between 10% and 15%.
Top Management: Depending on the recruitment firm's branding, the fees can range from 20% to 25%. Their services also varies as per their fee structure. No one charge more than fair price. They must be able to demonstrate the necessary abilities.
For example, for a Top Management Level recruitment for Top MNCs, a reputed consultancy firm may guarantee that the client would be able to finalize a candidate from just about 5 to 6 resumes.
In companies where hiring is done in bulk or where agencies are required to provide profiles in a short period of time (sometimes the next day for walk-ins), and where agencies are also required to close a certain number of positions per month (as is the case in a BPO), agencies work according to the slabs.
If number of positions closed in a month are between:
1–5 - they will charge 5000
6–10- they will charge 7000