How genuine recruitment firms operate and make their money

If you ever have to pay a recruiter or if any recruiter is asking you for a fee that is a red flag.

Generally, recruitment firms make their money through staff placement. The smart ones sign an SLA with their client which can be any company ranging from SMEs to Multinationals.

When the client has a need they reach out to the firm and give them a brief to source for candidates

When they put out job adverts they do their own screening before they present you to their client. Many times they don't usually reveal the name of their client at the initial stage when they broadcast the job advert. This is due to several reasons:

First, they might not the only ones given the brief as they might not be given exclusive agreement to work on the role

Secondly, the client might not want their name to be put out there and would expect them to carry out their operation with the utmost confidentiality.

Thirdly, sometimes there might be someone on the role presently whom the company is planning to replace and fire.

Moreso, Humans beings can be funny and try to bypass them and go to the company directly since they are aware there is a vacancy. This can make the agency lose money

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Based on the outcome of the recruitment firms screening, they will present CVs to their client. That you had an interview with the agency is not a guarantee that they will present you to their client.

Once your CV is submitted by them to the client the recruitment process is

out of their hands. At this point, they will also be praying for you to get selected so they can be paid. They will give you useful advice so you can position yourself well to be selected.

Sometimes the agency will also work hard in negotiating the highest possible salary for you as it is to their favour.

Note of caution for candidates: recruiters don't like you going behind their backs and trying to get a job on your own or through another agency.

Don't try to play a fast one on them. It could backfire and they will blacklist you.

Carry them along all through the process with the client up until you get the job. Once you have the job, you're on your own unless you contact them to help you out in the future.

It is only when you have resumed work with their client that recruitment agencies get paid. This means once the employer has extended an offer and the candidate accepts and turns up on the first day of work.

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The company then pays the recruiter a percentage of the candidate's salary as a finders fee (usually about 10- 20% of the candidate's annual gross). This is a one-time fee. This won't affect the salary you will be paid monthly going forward.

There are several factors that might cause a delay in the process.
Sometimes the client will go silent on the recruitment agencies after they have sent your CV or even put the role on hold. That's why sometimes a recruiter might be silent.

They don't have any info for you yet. Sometimes they call the client for feedback and they don't get any response. Please bear with them.

I hope you have learned something today.

Author

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