List of Headhunter Fees

In modern enterprise recruitment, headhunting company has become an important channel to find high-end talents. However, the charging standard of headhunting service varies with the company size, service content, industry characteristics and candidate level and other factors, which makes enterprises often face many questions when choosing headhunting service. The purpose of this article is to provide a more comprehensive overview of headhunting fees to help companies better understand and choose their own headhunting services.

List of Headhunter Fees:

1. Overview of charging model

Headhunters charge a variety of models, but in general can be summarized as follows:

Results-oriented fees:

This is the most common and popular way for businesses. Headhunters charge businesses only after they have successfully recommend a candidate on board and stabilized for a period of time. The fee is usually calculated as a percentage of the candidate's annual salary (e. g. 20%-35%).

Pros: Low risk to the enterprise, to ensure the success of recruitment before paying.

Disadvantages: If the recruitment fails, the company does not need to pay, but may extend the recruitment cycle.

Prepayment balance mode:

After the enterprise signs the cooperation agreement with the headhunting company, it needs to pay the agreed proportion of advance payment (generally the default is 30%-50% of the total cost), and the candidate will pay the balance after entering the job.

Advantages: reduce the financial pressure of enterprises, to ensure the smooth progress of the project.

Disadvantages: Need to pay in advance, there is a certain risk.

Phase charging mode:

Headhunters divide the recruitment process into early, middle and late stages, and charge a certain percentage of fees at the end of each stage.

Advantages: cost sharing, high transparency.

Disadvantages: If the cooperation is canceled midway, the paid fees may not be refunded.

Additional Service Fee:

In addition to basic service fees, some headhunters also provide value-added services such as background checks, salary negotiations, and career planning, which may be charged extra.

2. specific charging standards

1. Basic service fee

Recruitment of senior personnel: usually 30%-40% of the annual salary of the recruitment position.

Middle-level personnel recruitment: generally 20%-30% of the annual salary of the post.

The service fee of headhunters is generally 20%-33% of the annual salary of the position, while foreign or large headhunters are higher, which may reach 25%-33%.

2. Guarantee period fee

In order to ensure the stability of the recruitment results, some headhunting companies set up a guarantee period (3 months to 1 year) after the candidates enter the job. During the departure or dismissal of the candidate, the headhunter may refund part or all of the fees, or re-recommend the candidate.

The guarantee fee is generally calculated as a percentage of the candidate's monthly or annual salary.

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3. Advance payment and final payment

The proportion of the advance payment is usually between 30 and 50 per cent of the total service charge, the exact amount being negotiated between the parties.

The balance is paid after the candidate has successfully entered the job and passed the guarantee period.

4. Additional service charges

Additional services, such as background checks, compensation negotiations, etc., may be charged separately or included in the base service fee, depending on the content and complexity of the service.

3. influencing factors

The charging standard of headhunters is not fixed, and there are many influencing factors:

Company size and visibility: Large, well-known headhunters tend to provide better service and higher talent matching, so the fees are relatively high.

Industry background and recruitment positions: it is difficult to recruit scarce talents such as high-end management positions or technical experts, and headhunters may charge higher service fees.

Market supply and demand situation: hot industry recruitment competition is fierce, headhunters may adjust the charging standard according to market conditions.

The charging standards of headhunting service are complex and diverse. When choosing a headhunting company, enterprises should comprehensively consider their own needs, budget, service quality of headhunting company, industry experience and other factors. By carefully comparing the charging standards and service contents of different headhunting companies, enterprises can find the most suitable partners and achieve efficient and accurate recruitment goals.