How do you charge?

Till Recently, charging anywhere from 8% to upto 20% of the first year CTC of the candidate, was the standard recruitment fee structure  in India. Most of the time discussions used to happen around the percentage a recruitment consulting would charge and there was hardly any discussion on any other model. But, now, anywhere, we go, one of the first question being asked is, Do you have any other model?

This is the changing reality of the recruitment space and Most of the recruitment consulting companies as well as Organizations have realized this.  The new models being suggested are a mix of fixed minimum sum and rest being paid as success fee with standard SLA terms.

This is certainly a win win proposition for both the parties. Recruitment consulting companies do not have to work on closing positions that some body else too is working to close and there is very high chance that in spite of putting good effort in closure, they may end up getting nothing.  Where as for Employer, there overall cost of recruitment goes down. They do not have to pay a fixed percentage for hiring, but pay less for giving predictable revenue to a consulting company and also enjoy the SLA benefits.

But what about Employer posting their requirement on Recruitment Marketplace like Zyoin and quoting their own price for getting the required resource? How is that going to impact the whole ecosystem? We would be discussing our observations in upcoming posts.