Gus Honeybun

Can anyone advise typical fees charged to the employer for recruitment services? I'm thinking here of TCN and Western staff. Are quotes of 3 months salary the norm for UAE? Thanks.

Millhouse

For professional Western staff, I was recently quoted between 25%-30% if sucess based, or a reasonably large retainer (like 50k USD for a 250k package).

So 3 months, 25% sounds about right. It's not so bad - you can probbaly force the jinglies to pay that if you pushed them hard enough

EDIT - mine is banking (as Scamp points out below, it varies)

Scamp

Depends on the market.

In Construction you are lucky to get much North of 12-15% of basic.

A months basic / a months package seems to be what most companies feel is worth paying.

shiva

About right for a decent company.
flip flop and co will charge you 5-15% but expect a totally random bunch of cv's unrelated to the role

shiva

Actually retainer is a bit high. 20-30% of total fee as a retainer is the norm

Millhouse

50/250 = 20% Just saying, like. - the people who quoted me this did not work on sucess, more milestones.

shiva

Full executive search at full fees for that role would be
250k salary
Fee at 33% 83,333 total fee. Payable in thirds
Retainer of 27,777
Short list fee of 27,777
Final fee +/- 27,777 depending on final package

Retainer and short list payable regardless of final success

More than that as a retainer and they are taking the piss, short list fee only payable if you accept the candidates otherwise they start again

Millhouse

yup that was about it.

but one offered 50k -- no sucess. i.e we pay 50k (on two milestones - basically your first two)

shiva

Piss take
Other option is 50-50 retainer and success
Don't touch anyone not willing to work until success otherwise you risk being hung out to dry

Most will work at 20-25% fee on thirds or one third two thirds an acceptable deal for both parties

Ethos83

What happens if a candidate is recruited then leaves the company a few months later? Does the company get any of the money back?

shiva

Any good firm should offer a guarantee from 6months to a year depending on seniority. Some will offer money back most will do a free replacement

Millhouse

I didn't say we took that offer

Actually we managed to back end the final firm. We never pay more than 10% upfront (a global procurement rule) so we pushed the first third back.

shiva

10 is low but banking salaries are ridiculous so they'll make their money anyway

mentalist

Why would any competent employer want to fork out 30% of salary on a new recruit? Surely a simply search on-line would do the job. Recruitment agents and estate agents are both a wasteful luxury over here.

Kix

Whilst I'd like to disagree, frankly I can't.