Recruitment can be a challenging task for an organisation due to the cost in effort, time and resources. To help navigate this problem, most companies hire recruitment firms for support.
While these firms take charge of finding the right employees, the employer is still responsible for paying recruitment fees.
The last clash you want to have is a legal dispute on the fees when recruiting an employee through an Ipswich recruitment agency. It is better to have a clear understanding of the fee structure of any recruitment agency before entering a formal contract with them. In most cases, agencies charge the following fees:
Temporary Worker Fees
Recruitment firms in Ipswich are responsible for temporary workers payments. Temporary fees consist of the basic pay calculated at a daily or hourly rate, associated payroll costs like insurance and sick pay and the agency’s profit mark-up. You can negotiate on the basic pay and profit margins, but payroll costs are statutory.
Permanent Worker Fees
These fees are paid for permanent employee placements and contracts and oblige the agencies to match your recruitment requirements. They are divided into contingency and retainer. Retainers are typically paid in three instalments. You pay the first instalment upfront, the second upon presentation of a candidate short-list and the final after acceptance of the employment offer by a candidate. Contingencies are paid after the candidate starts working.
Temporary to Permanent Worker Fees
If you wish to retain a worker initially hired as a temporary worker, they should pay the agency a temp to permanent fee to compensate the agency’s revenue loss. The fees vary among recruitment companies. You need clarification with your recruitment agency what the exact cost is even before the situation arises.
You can alternatively pay for an extended period of hire fees in place of a temp to permanent fee. The fee allows a worker to continue as a temporary employee for a specific period. This period, however, has no limitation and is hence typically expensive in the long run.
Keep the fees in mind to ensure your company hires the best employees with the help of a trusted recruitment firm.