When working with international recruitment consultants, understanding how they charge their fees is essential to managing your recruitment budget effectively. These experts provide valuable services that help businesses find the right talent on a global scale, and their fee structures can vary depending on the type of service provided. By knowing how international recruitment consultants charge, businesses can better assess the cost and value of partnering with them.
Contingency fees:
Contingency fees are one of the most common fee structures used by international recruitment consultants. Under this model, the consultant only gets paid if they successfully place a candidate in the role. The fee is typically a percentage of the candidate’s first-year salary, which can range from 15% to 30%, depending on the industry and the level of the position. This structure is often preferred by businesses that want to minimise upfront costs and pay only upon successful placement.
Retained search fees:
In a retained search, businesses pay the recruitment consultant an upfront fee to begin the search process. This fee is typically non-refundable and is paid in instalments as the consultant works through the recruitment stages. Retained searches are commonly used for high-level or executive positions that require a more thorough and targeted recruitment process. The overall fee for a retained search can be a fixed amount or a percentage of the candidate’s salary, often ranging from 20% to 35%.
Flat fees:
Some international recruitment consultants offer flat fee services, where businesses pay a fixed amount for the recruitment process, regardless of the candidate’s salary. This fee structure can be advantageous for companies that are hiring for multiple positions at once or for roles with predictable salaries. The flat fee often includes various stages of recruitment, such as candidate sourcing, screening, and initial interviews, providing clarity on costs from the outset.
Hourly or daily rates:
For businesses requiring more flexible or short-term recruitment assistance, some international recruitment consultants charge hourly or daily rates. This model is typically used for projects such as managing temporary placements or providing consultancy services for recruitment strategy. The rates can vary depending on the consultant’s expertise and the complexity of the project, offering businesses a flexible pricing structure based on the amount of time required.
Success fees:
In some cases, international recruitment consultants charge a success fee, which is a supplementary fee paid once a candidate is hired and completes a probationary period. This fee is often added to the standard recruitment fee and is meant to reward the consultant for successfully placing a candidate who stays with the company long-term.