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I was always wondering why recruiters need to be paid heavy commission to find resources? What do they provide that the HR or internal resources can't do so?
Based on my observation over years, though I have 20+ years of software development experienced and holding good position, I get emails from recruiters asking if I am interested for "java developer" position or "software engineer" position which requires 3 to 5 years.
Planning to open a recruiting agency myself, so that my experience and know-how of the software industry, can help myself give the right service to both the candidate and the company?
Also I see that the recruiter get huge commission, whereas I honestly feel about a month to 1.5 month salary should be the max, one should get, no matter what?
Simple most companies' HR are useless and incompetent. They need recruiters to cut trough the black holes and dysfunction that define most companies' recruiting system.
A friend of mine just got hired after a recruiter got him into see the hiring manager. He has sent his resume to the careers email several weeks prior. Since HR was too lazy and incompetent to read it the company ended up paying $20,000 or $30,000.
Recruiters specialize in areas they hire for...IT, Finance, Marketing, Consulting. Company HR employees do not have the expertise to be able to sift the best fit for the position. Imagine talking TCIP, C++, Java, SAP, Oracle or other specific applications to an HR rep. Some companies deal only with recruiters and have established contacts with each. That's why in larger recruiting companies, there is always a pair - one that deals with the clients and presents the candidates, and one that screens the candidates themselves. The latter sometimes are called candidate advocates. The partnership between the client rep and candidate advocate within a recruitment firm is what gets an applicant placed. In smaller firms, they are one and the same person.
Some recruitment agencies also provide benefits to their candidates. While premiums are higher than those provided by hiring companies themselves, and coverage may not be as robust, they are better than COBRA, or nothing at all, when candidates are contractors and not eligible for insurance from the hiring companies. They also negotiate your pay in your behalf. I have dealt with two recruitment firms, and in both cases, they will advise a salary hourly rate, how far you can bargain for within the range based on your experience, what not to say during your interview or how to behave during the same. Some will give you a character description of the hiring manager if they have dealt with this manager before, or the department culture for that matter. All of these services certainly are not free, and can get you in the door where you may not be able to.
Being a veteran in IT does not mean you have what it takes to be an independent recruiter. There is a difference between friends, knowing someone and a hiring manager making a decision. Will your perfect candidate show up on day one? Will he be there on day 91 so your commission is yours? Can you bridge 6-12 months without income? Do you know how long it can take to develop a candidate and a client? Do you know how many flat fee recruiters a client may have in the hunt? Kitchen table recruiting seems to be going the way of desk tops.
Simple most companies' HR are useless and incompetent. They need recruiters to cut trough the black holes and dysfunction that define most companies' recruiting system.
A friend of mine just got hired after a recruiter got him into see the hiring manager. He has sent his resume to the careers email several weeks prior. Since HR was too lazy and incompetent to read it the company ended up paying $20,000 or $30,000.
Good god this couldn't be further from the truth.
Recruiting is all about the network a person has. An HR department has a very small part of its job as finding candidates, and often it is more economical to find someone who has an extensive network and can easily find candidates. Why spend a few weeks looking for the right candidate at an opportunity cost of thousands of dollars to a firm when you can hire a recruiter to do the same thing for a fraction of the cost?
Being a veteran in IT does not mean you have what it takes to be an independent recruiter. There is a difference between friends, knowing someone and a hiring manager making a decision. Will your perfect candidate show up on day one? Will he be there on day 91 so your commission is yours? Can you bridge 6-12 months without income? Do you know how long it can take to develop a candidate and a client? Do you know how many flat fee recruiters a client may have in the hunt? Kitchen table recruiting seems to be going the way of desk tops.
Based on number of emails I get from recruiters, I can certainly say that Kitchen table recruiters are still in place. They merely automate Dice and Monster to send Job details without looking into the candidate's profile. By the way, I have been doing recruiting service for the last 18 months and have gone through the "6 to 9 months no income" myself. I am just trying to understand the process model and how to get breakthrough in this, where service and commission are evenly placed.
Recruiting is all about the network a person has. An HR department has a very small part of its job as finding candidates, and often it is more economical to find someone who has an extensive network and can easily find candidates. Why spend a few weeks looking for the right candidate at an opportunity cost of thousands of dollars to a firm when you can hire a recruiter to do the same thing for a fraction of the cost?
Um because that is HR's job. Most recruiters use the same methods. They post a job ad and go through resumes, sometimes meet with and check references of candidates then send them to the client and charge them 30-50% of a years salary. Why not have your lazy HR department post the ad and look through the resumes and save tens of thousands of dollars.
I really couldn't believe my friend got hired by a company through a recruiter when he emailed his resume right to HR's face and they could not even be bothered to look at it. Instead they had to pay a recruiter $30000 to do HR's job for them.
Um because that is HR's job. Most recruiters use the same methods. They post a job ad and go through resumes, sometimes meet with and check references of candidates then send them to the client and charge them 30-50% of a years salary. Why not have your lazy HR department post the ad and look through the resumes and save tens of thousands of dollars.
I really couldn't believe my friend got hired by a company through a recruiter when he emailed his resume right to HR's face and they could not even be bothered to look at it. Instead they had to pay a recruiter $30000 to do HR's job for them.
Just because recruiting falls under the job category of HR does not mean it makes fiscal sense for them to do it. I seriously doubt your numbers that they paid $30k for a single recruit. That is more in line with a yearly contract with a recruiting company. Contractors/offshore workers/third party recruiters are MUCH cheaper in many instances than hiring a new person to do the work.
An employee costs roughly double their salary to a company, when all expenses/benefits/office space/etc are accounted for. Suppose the new HR person they would have to hire would get a $40k/year salary, that is an $80k/year cost to the company. If a recruiter can do the same job for your $30k, then clearly a recruiter is a MUCH better choice.
So are you seriously calling saving $50k/year 'laziness'?
Because some recruiters are better at sales than many candidates. An engineer who can't sell himself could apply to thousands of firms and get no response but a recruiter can sell the engineer to a firm.
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