In retained recruitment, a recruitment agency is paid a flat rate for their services upfront. They work closely with the client and follow a rigorous process to find the best fit for each job. This arrangement involves an agreement between the organization and recruitment agency for filling the projected opening.
Retained recruiter firms generally don’t have to compete as they tend to be the only ones working to fill a position.
The fees generally are 20-30% of the candidates' annual salary which are spread over multiple payment patterns.
1. A fixed amount paid every month (or quarter) plus an additional bonus for filling positions.
2. 50% of the amount is paid upfront and the remaining once the placement is done.
3. The amount is paid in 3 stages ( 30% on signing the contract -30% When an offer is made- remaining 40% when candidate joins)
In cases where the recruitment is niche and rare, agencies also charge 30-40% of the annual salary.
Pro Tip: To be successful in retained recruitment, it’s essential to submit high-quality candidates to minimize the work your client needs to put in.
A powerful system that helps you manage your clients and candidates relationships will go a long way in helping you succeed and grow your business.