The economy has created a veritable tsunami of prosperity in recent years. Suddenly-rich entrepreneurs are buying mansions and upscale cars with the fruits of their inspiration and hard work. But it takes a team of talented people to make the boat float. Recruiting fees, which dipped in the economic downturn of the early nineties, are on the rise again.
Fees vary, depending on the industry and area of the country.
Yes, the market there is Spandex-tight, but Silicon Valley firms are able to attract candidates because of the appeal of technology, its prospects for excellent career growth, and potential equity participation. Years ago, clients would try to discount the fee, but today they are more than happy to pay it if you can find them the right candidate. Over the years, recruiters have tried to change the common baseline fee of one percent per thousand dollars of the first year's salary, says Thaxton, but clients are so used to that formula that they're reluctant to change. For any but top level positions, however, the formula really doesn't garner enough money to reflect the effort spent, especially since lower-salary positions often take more of a recruiter's time and energy to fill. You get what you pay for.