How much is the sourcing service charge a consultancy can take from the company in company payout option?

 

Ans:

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.

Which means:

If number of positions closed in a month are between:

1–5 - they will charge 5000

6–10- they will charge 7000

 

 

Talk to our HR experts

Should you opt for any course of HR? Should you go for Classroom or Online HR Practical Training? Which one is the best HR training Institute? Which HR Diploma is best for you? Find out all answers.