How Much Should a Placement Agency Charge a Company for Its Services?

Hi,

I would like to know how much the placement agency should charge the company for its services.

Thank you.

Dear Aarti,

It all depends on the management cadre, such as Junior, Middle, or Senior Management, or it can depend on the quality of candidates. Some consultants do charge based on packages of candidates.

Sneha Jassuja

Thanks, Sneha. Does the placement provide any guarantee for candidates? For instance, if they leave the organization before a specific time, will they provide a replacement?

Hi Aarti,

The standard rate for the BPO agents is 6000 per candidate. In IT organizations, you need to negotiate. The standard rate is 8.33% per hire, but a lot of big consultancies ask for slabs, which are as follows:

- Jr. positions: 8.33%
- Middle Level: 10%
- Senior Level: 12-14%

Thank you.

Dear Aarti,

It differs from agency to agency; usually, 8.33% is preferred by both employer and client. 8.33% is a magic figure, equivalent to one month's gross salary. If placement is done for an Executive position, sometimes it varies from 10-12% of the gross annual salary. Usually, all employers seek a free placement of a candidate if the candidate leaves the organization within 6 months.

If you want recruitment to be done in African countries like Nigeria or Morocco, usually agencies charge some amount to be deposited as an initial deposit so that if at any point the recruitment is canceled, the amount is not refunded (getting the price for the work---in other sense). If the recruitment is completed, this amount is adjusted with the final payment.

The payment of the amount is usually done within 30-45 days by the employer after receiving the invoice (sometimes only after 45-60 days after the candidate joins the organization).

To cut the story short, it all depends on the organization's policy.

Suresh
mgsuresh@gmail.com

Hi,

Can anybody help me out by providing the service charges for background screening and verification process, please?

Regards,
Deepika
TopVacancy.Com

Hi Aarti,

Basically, a normal placement agency charges 8.33% for lower and middle levels and 14-16% for higher levels. It depends on how good you are at negotiating with the agency. Top placement agencies charge 20% for any level. Normally, they give you a 6-month replacement period. The service charge is 12.5% on the billing amount.

Thanks,

P. Sadashiv

Hi,

The prevailing charge is 8.33% of the Annual CTC and normally provides a 3-month free replacement period.

Please let me know if you need any further assistance.