Professional Service Fee charged by consultant

rajul1979 · #1 04-08-2009, 03:55 PM

I would like to know what is the bare minimum Professional Service Fee
for Permanent Positions if we go with the recruitment consultantancy

Our company is appointing a manpower consultancy who is charging
Professional Service Fee equivalent to 8.33% of the annualized salary of the personnel. Annualized salary includes fixed monthly salary, PF contributions, Housing Rent Allowance, Fixed Conveyance or Lunch allowance and any compensation that is fixed (example: fixed bonus salary)+service tax. It does not include any variable or indeterminable portion, (example like variable sales commissions or medical benefits).

My management has said to find what is the market rate as this consultancy is charging much. Please provide some rates.

balaji.venkatesan · #2 04-08-2009, 04:01 PM

Normal market charge is 8.33% only depends upon the experience the charges will increase upto 12%.

rajul1979 · #3 04-08-2009, 04:07 PM

but our is a logistics sector where placement of labour in industry is done.

rajul1979 · #4 04-08-2009, 04:13 PM

Quote:

Originally Posted by balaji.venkatesan

Normal market charge is 8.33% only depends upon the experience the charges will increase upto 12%.

We are recruiting labour for industry so according to our management the labour class does not require such degree and the requirement is in bulk.
Please suggest can we negotiate with him

madhav2222 · #5 05-08-2009, 04:07 PM

Since you are recruiting in bulk and concerned more on labour who are semi-skilled or less. Go for a public advertisement mentioning your requirement. Cost would be reduced, as you will be paying only for place and arrangement of the 'interview' venue.

Just you need to be more cautious about documentation and trueness of the candidates details.