Confused About Consultancy Charges: Are They Asking for CTC, a Bond, or Something Else?

Hello, I have contacted various consultants to fulfill the requirements. Usually, they charge either 8.33% of the candidate's salary or 1 month's salary from the company. However, recently I have come across some consultancies asking us (the company) about our charges. I am confused about the "charges" the consultancies are inquiring about. Are they asking for the annual CTC or a bond, or something else?

The industry standard is 8.33% of the Annual CTC of the candidate offered by the recruiting company. If they are asking for any other options or commission, you may put your conditions clearly. Also, there is always room for negotiation.

Regards,
Preety Jindal
SS HRM
Mob.: [Phone Number Removed For Privacy Reasons]

I have asked them for commission or negotiation, but they were not inquiring about any of these matters. That is why I am more concerned about what kind of charges companies also impose.

Thank you.

Dear Divya, I would like to inform you that every professional consulting company has its own set of rules and regulations. In the market, you will find numerous small consultants. Let me outline the charges for the recruitment of manpower by consultants for clients:

1. For entry-level to middle-level positions (Assistant Manager Level), the charge is 8.33% of the annual CTC offered by the client to the candidate.

2. For middle-level to upper senior positions (Manager to Assistant VP), the charge ranges from 10.5% to 12.5% of the annual CTC offered by the client to the candidate, depending on the consultant.

3. For upper senior to top management positions (VP to MD), the charge is between 16.80% to 25% of the annual CTC offered by the client to the candidate. This is considered a headhunting profile, where the client selects the company and asks the consultant to approach a candidate from that specific company, which requires a significant investment from the consultant.

A reputable and professional consulting company will always adhere to this structure and deliver results on time. However, there are many consultants who solely rely on job portals like Naukri, Times, or Monster to search for candidates. They may lack the expertise to secure top management openings from clients. Beware of such consultants as they often fail to provide timely services and may waste the client's time by presenting unsuitable candidate profiles.

Thank you.

Regards, P. Rana