Save precious business time by engaging a recruitment firm

A recruitment firm can make finding good staff a breeze, handling everything from advertising to screening, interviewing and even salary negotiations. But what can you expect to pay for this service?

Recruitment firm consultant costs 

Permanent employees - According to Mark Berlese from Russo Recruitment, recruitment firms usually charge a percentage of the employee's salary - from 10 to 20% depending on the seniority of the role.

At other times, depending on the role, an agency may charge a fee based on a percentage of the employee's total package, including car, superannuation and even potential bonuses.

"This fee is a one-off and should be agreed beforehand so you know the real cost of recruitment and can budget accordingly," says Mark.

Contractors - Your business will pay an agreed hourly rate for the contractor's time. Depending on the industry, this rate may include all taxes, super, etc. The benefit is that you only pay the person for the hours they work - not for sick leave or holidays. 

If you later decide to employ the contractor on a permanent basis, it is likely the recruitment firm will charge you an introduction fee, in line with the fee charged for a permanent employee as above.

Advertising costs

Most positions are advertised online, in the press or in specialist publications, or a combination of the three.

Recruitment firms will apply a separate charge for this; the advantage is that they will have extensive advertising-writing experience, making your ad far more effective than if you wrote it yourself.

More critically, it is usually far cheaper for a recruitment agency to place an ad, thanks to volume discounts with print and online advertisers.

"No matter how good you are at negotiating, your one-off ad will never obtain as significant a discount as that achieved by a recruitment agency," Mark advises.

What guarantee do I have?

Having spent good money on recruiting the best possible new employee, of course you'll want that person to stay. But remember that a recruitment consultant will also have a lot invested in finding the right person for you - after all, it's their reputation at stake.

That's why most recruitment agencies offer a free replacement warranty if the staff member leaves for any reason (other than retrenchment) within the first three (or sometimes six) months.

At the end of the day, though, no costs or conditions are set in stone, advises Mark. "Everything is negotiable in this market, so don't be afraid to ask for a better deal, particularly if you are building a long-term relationship with the recruiter," he says.

Using a recruitment consultant to find good employees will not only save you time, it will ensure that you get the best person for the job.

So make a wise investment and talk to a recruitment firm consultant today about finding the right staff for your business.