How do headhunters charge?

As a professional talent search and recruitment agency, headhunters play a key role in the search for senior management talents or talents with specific skills. They usually provide services for enterprises from screening, evaluation to the recommend of suitable candidates. So, how do headhunters charge? Next, we will discuss in detail several common charging modes of headhunters.

How do headhunters charge:

1. common charging models

1. Charges according to results

The headhunting company will charge a certain percentage of service fee after successfully recruiting suitable talents for the enterprise and the talents are employed for a certain period of time (such as 3 months or 6 months). This ratio is generally about 20% - 30% of the candidate's annual salary. For example, if a successful candidate earns $500000 a year, the headhunter may charge a service fee of $10-150000.

For example, an Internet company entrusts a headhunting company to recruit a technical director. The final candidate's annual salary is 800000 yuan, and the headhunting company charges 25%, then the company needs to pay the headhunting company 200000 yuan for services.

2. Advance payment model

Some headhunters will require companies to pay a certain amount of money in advance when entrusting recruitment as project start-up capital. The advance payment is usually deducted in the final service charge. Under this model, the advance payment may not be refunded in full even if the right talent is ultimately not successfully recruited.

For example, a manufacturing company cooperated with a headhunting company and paid an advance payment of 50000 yuan in advance, and finally successfully recruited suitable executives. The total service fee was 180000 yuan. After deducting the advance payment, the company had to pay 130000 yuan.

3. Charge by process

A few headhunters charge fees at different stages of the recruitment process. For example, there is a fee for each stage of resume screening, interview arrangements, background checks, etc. But this model is relatively rare, as businesses may prefer to pay for results.

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2. Factors Affecting Charges

1. Position level and difficulty

The higher the job level, the stronger the professionalism, and the more difficult it is to recruit, the higher the percentage of fees usually charged by headhunters. For example, the recruitment of an ordinary sales staff and the recruitment of a CEO, the proportion of fees will certainly be very different.

2. Industry characteristics

Different industries have different levels of competition for talent. Like the hot financial, Internet and other industries, talent is scarce, headhunters may be relatively high fees.

3. Regional differences

In economically developed areas, there is a strong demand for talents, and the operating costs of headhunters are also high, and the fees may be higher than those in relatively underdeveloped areas.

3. considerations in selecting headhunters

1. Whether the charging model is in line with the enterprise budget.

Companies need to choose a headhunter with a reasonable fee model based on their financial situation and recruitment needs.

2. Headhunter's professional ability and reputation

Understand its success stories, industry resources and customer reviews in related fields to ensure that it can provide high-quality services.

3. Service content and guarantee

Clarify the scope of services provided by the headhunter and how to deal with unsuccessful recruitment.

The above is to introduce you to the headhunting company is how to charge, to understand the headhunting company's charging model is very important for enterprises in the selection of partners. Enterprises should choose the most suitable headhunting service according to their own needs and budget, and comprehensively consider various factors to achieve efficient and accurate talent recruitment.