Recruiters' Essentials

We are going to talk about recruiters, we will start by defining recruiters service. This is any service related to recruitment and the recruiter is a legal entity whose business is to list or enroll people as employees or as members of an organization. Recruiter can be a company and it can be an individual, like independent contractor. It can be a person who is an employee of a company itself. There are many types of recruiters.

Let`s talk about retained verses contingency recruiters. Retained recruiter is a recruiter who is paid for the time spent while recruiting regardless of the fact whether qualified services are identified, hired or not. Recruiters who are part of the company, employees they technically can be considered as retained recruiters. On the opposite side contingency recruiter is a recruiter who is paid only when qualified services are identified and hired.

Recruiters don`t do the whole process, usually recruiters source, screen candidates but someone called hiring manager makes the decision. Sometimes there are several hiring managers. Some companies, recruitment process is pretty complicated with series of interviews on different levels or some, it could be like a panel interview, so it is several people responsible for hiring. When recruiters source, screen and other people like hiring managers, they make a decision. What usually recruiters is looking for is not necessarily what the hiring manager is looking for.

Companies recruit on themselves, but many companies also outsource their recruitment, they outsource to employment agencies, to staffing firms, temporary staffing provider and headhunters. Headhunters work with only executive level, senior level, C-Level jobs and executive jobs. Temporary staffing, some recruitment companies actually provide staffers instead of temporary staffers, so a company has a chance for instance to hire an accountant who want to use an accountant from this temporary staffing company or staffing provider. In this case, instead of hiring a person they will just use someone`s services and employment agency is any entity which measures an employment candidate.

There is some overlapping difference between employment agency and staffing firm, staffing firm usually working with employers. An employment agency mostly works with the employment candidates.

How recruiters are paid especially if they are independent, usually recruiters are paid placement fee. Usually in America placement fee is about 20 to 33% of the salary of the hired. For instance, a recruited person is paid $100,000 the placement fee for the recruiter will be $25,000. Referral fee is also considered as a recruitment fee. Referral fee is only like a finder fee, for instance I suggest someone that this person can be hired and I brought a resume or application from that person. In this case I can get this referral fee. When we get back to finding potential candidates, when a company sends this like e-network message, sometimes companies states that they are looking for an accountant and your referral fee can be let`s say $200. In this case they are saving money on recruiters because they will recruit this person directly, they don`t need recruiters to reach out to look, to screen etc.

Sometimes recruiters can pay this referral fees if someone finds a referral candidate for them.

Saying this we are ready to jump into introduction to career administration.