How Do I Create a Fair Agreement for Candidate Recruitment Fees in My HR Consultancy?

Seeking Agreement Format for Candidate Recruitment Fees

Recently, I have started an HR consultancy. I am trying to establish partnerships with clients in my area. Most of the clients are interested in utilizing my services, but they are hesitant to pay consultancy fees. Instead, they suggest passing on the charges to the candidates. This practice is also being followed by other consultants in my area. Therefore, I have decided to collect recruitment fees from the selected candidates for placement.

To formalize this process, I am looking to create an agreement outlining the terms and conditions to prevent any potential issues with the candidates. Could someone please provide me with a relevant format for this agreement?

Regards,
Prasad

Hi Prasad,

Good luck on your new business. Charging the candidate for the recruitment services is highly not possible. There are few agencies who do so, stating the track record of their services. However, being a new player in the market, that would be very hard for you to charge the candidate. Also, you may target candidates with lesser experience, as candidates with more experience will not agree to pay for the services.

Thank you, Mr. Mahesh Nair, I agree with you; I am also not interested in charging the candidate. As you said, candidates who are looking for a change are not interested in paying the consultant charges.

For the past five months, I have created a database and acquired a few clients. However, since both the clients and candidates are unwilling to pay the consultancy charges, I am unable to generate revenue. Now, I understand that I am in the wrong place, and due to personal reasons, I can't relocate. Can you please advise me?

Facing Challenges in HR Consultancy

You are essentially caught between a rock and a hard place. If you cannot generate revenue, you cannot sustain your business. As unpalatable as it may sound, you have no option but to cut your losses now and exit before losing more money. You need to find a job for yourself, and quickly.

Search for my previous posts on starting a business. It is very difficult, and many people end up in the position you now find yourself in due to a lack of planning and thorough analysis of the business idea. Had you done this, you would have realized there is too much competition in this area in India, and you would have learned that you cannot charge candidates. If they have no job, how can they pay you? And why would they? I am sorry, but the notion of making candidates pay for someone to find them a job, with no guarantee of success, is just plain unwise.