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Old 27-07-2012, 03:04 PM
pretz pretz is offline
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Originally Posted by icy water View Post
As above. For a full time job.
I applied for a job through an agency online, agent called me and quoted $2600-$2800 for a position which I think is below market rate. A friend of mine working in another company same position draws a salary of $3100. I will be meeting an agent soon before I go for an interview with the company. Thus, I am curious to know if the lower salary quoted by him is because he took a cut or it was quoted by company's HR and he did not take any cut. Or do recruiters earn just by taking a one time amount from company?

I understand that 'market rate' is subjective so please don't flame me. Main thing is still to understand how the recruiters/agents earn. Others is just to provide some context.
I asked a friend who is working in a small time job agency.

She said, below a certain pay grade (below $100k/annum) it is 1 month of the person's salary.

She will get 50% of it immediately as her commission. Once the person completes 90 days work at the company, she gets the another 50% (split 25% to her, 25% to her boss).

So using her formula;

$2800 x 12 months pay + (hidden cost of $2800 recruiter's commission) = $36400, for the Employer.

$36400/12 = about $3050, if you had found the job by yourself, and HR budget the same.

Additionally, she did say HR people prefer to use agencies as to HR, cost is the same (cost per hire) and agencies can bully or pressure people into accepting the lower pay by using the threat of "i have other candidates lined up for this position if you don't want it".

Furthermore, her boss will send gift hampers for each new hire...
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