Recruitment Fees

Recruitment Fees (hereinafter, the Lectio) is the second lesson part of the Recruiters' Essentials lesson that introduces its participants to employment and related topics.

WorldOpp Pipeline

This lesson belongs to the Introduction to Recruitment session of EmployableU Concepts.

Content

The predecessor lectio is Recruiter Resources.

Script

A recruitment fee is the fee that an employer or a third-party recruiter agrees to pay as compensation for sourcing, screening, and, sometimes, selecting one or more employment candidates. In many countries, the labor law restricts charging a worker with the fee for placing this worker in a job.

A placement fee is the fee that an employer agrees to pay a contingency recruiter as compensation for placing one or more employment candidates into specified employment. In the United States, those fees are typically collected as a percentage of the annual salary of the hired, ranging between 20% to 33%.

A referral fee, which is also known as finder's fee, is a commission paid to an intermediary or the facilitator of a market transaction. This fee is rewarded because the intermediary discovered the deal and brought it forth to interested parties. Depending on the circumstance, this fee can be paid by either the transaction's buyer or seller. In the United States, either an employer or a recruiter may pay the fee for finding the right employment candidate. For instance, an employer may pay the fee to its current employee instead of paying the placement fee to a contingency recruiter. Or a contingency recruiter may pay the fee from its placement fee, etc.

In the United States, a referral fee may range from a hundred of dollars and up to a few thousands. This fee is communicated in advance and doesn't require any proof of any work. The referee is is paid when the referred person is hired.

Some recruiters are in the business of selling their pipeline candidacies.

Key terms

Recruitment fee, placement fee, referral fee (finder's fee)

Closing

Is the difference between different types of recruitment fees explained well? --Yes/No/I'm not sure

What Career Is is the successor lectio.