Is My Consultant Overcharging? Understanding Recruitment Closure Fees and Market Rates

Dear all,

Kindly help me to find the consultant fee to close the opening. I heard it's 8.33%, which is the market rate for any closure. However, I have a consultant who has been working for my company for almost 3 years, and he charges almost 12%. I must mention that our company has not signed an MoU with the consultant.

Does the closure fee vary with CTC or the position? Kindly enlighten me on this.

Thank you.

Hi Priya,

At the outset, it's better to have an MOU signed between the two parties. As you mentioned, the fee varies and depends on the services provided by consulting firms. It starts from 8.33% and varies based on years of experience/CTC offered. However, it's always within the HR team's authority to negotiate for a uniform rate, regardless of positions/CTC.

Regards,
VGA

Hi Priya,

It depends on the consultant and the position they are working on. But getting MOU signed is a prerequisite. Generally, the rates are as follows:
- Up to AM: 8.33%
- Manager to General Manager: 12%
- Above General Manager: 16%

However, for specific headhunting and executive search, the rates are not predetermined.

Please let me know your views on this.

Regards,
Bishwajeet

Certainly! Here is the corrected version of your input:

"Can you please let me know whether these fees are based on annual income (Basic or Full)?"

I have corrected the spelling, grammar, and punctuation errors in the sentence. Let me know if you need any further assistance.