0

How do employment agencies make money off of direct hires? Originally told that the position was direct hire but now it has turned to temp to hire.

2

A recruiter will enter an agreement with the hiring company to receive a percentage of the annual salary of the new employee. Typically this is 15-20% of the annual agreed salary, but lately I've been seeing more expecting 25%. Each agreement is different, but it's unlikely that the change in the terms of employment is related to the recruitment agreement. I would suspect it's more likely to be related to a situation in which the company was burned by a bad recruit.

If it is related to the recruitment agreement, it will likely be a contingency clause requiring the recruit to remain in the employment agreement for a specific period of time. Each agreement is unique though, and they will not share their agreement with outside parties.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.