Recruitment agencies generally charge a recruitment fee based on a percentage of the base salary of the candidate being placed in a company. However, there are a few different forms of fee structures that can be settled on based on the joint decision between the company and the agency. Some of the arrangements are:
Contingency recruitment model: No placement, no-fee and if a placement is made it will include a one-off payment from the company making the hire.
Exclusivity deal: Here the company hands over their roles to one recruitment agency specifically who can exclusively have access to working on them. The agency then will have a dedicated set of recruiters to work them until they’re filled. Here are the benefits of using an exclusivity deal.
Retained business: Here the company again commits to working with one agency and makes a partial payment upfront, the next portion of payment is made during the recruitment process and the reminder is paid on the placement of the candidate. It’s a win-win situation as the company gets the job vacancy filled and the agency gets paid for the effort put in.