I have been having a bit of hard time hiring some new positions in my company, mainly Unity devs. Every time I get a good lead from a recruiter, the fine prints always note they will take 20~35% of the potential employees' pay. Is this legal? How is this legal? Why these vultures take so much of someone's pay? Because they send meaningless messages on LinkedIn to bother people as their job? Yes, I'm ranting.
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- Microsoft FactsIf it is so easy, why don't you do it? Why don't you spend your time sending "meaningless messages on LinkedIn"
- 20~30% of monthly pay...no man. That isn't right even if writing messages on LinkedIn is actually hard. Some of them also usually say they don't charge fees to the candidates. Truthfully, I have. Not as much as they do, I'm sure. (Only did less than 10 times and got 6 to reply back with 3 hires in my life.) But I don't take 20~30% off my new team members' pay.
- What do you mean is this legal? You're a fucking idiot. It's business. Either hire your own recruiter, recruit on your own, pay the fee or don't grow your team and die.
- You pay for a service. Find cheaper if you can but that sounds like a standard rate unless you are big Enterprise and hire out to RPO model.
If you have them on contract through agency then they are taking liabilities off company's hands. Laws and separation of contractors and fte and such.
And yes, it's legal. It's a service agreement that recruiter, candidate, and employer enter into willingly when done correctly. Service to clients is employer that doesn't have enough bandwidth for in house recruiters, service for employee is if employee is unable or too lazy to do job search themselves or had an opportunity presented to them that they otherwise would not have known about.
Don't degrade a profession unless you really understand what it takes. How do you like it when people say all PMs do is set meetings and take credit for people's work? Or engineers just bang their keyboard and glue libraries together? There's usually more to it if it survives as a business model in an open market.
- I will take a note on your comments about understanding other professions. I was ranting but it seems like majority of comments are very aggressive and doesn't care for what a rant is...
However, we are not looking to fill the position thru a third-party agency. I am aware of how the company can benefit by opting out on liability. I am also aware of having a third-party contract can be problematic in some cases. I want them to have the same benefits and equal and fair compensation. If the cut was only on my company's side, we would have already approved it. However, that weren't the case for majority of the recruiting agency agreements we received.
- How long do they take the 20-30% for? If it's for a short period of time then I presume there's probably some merit, but for a prolonged period of time that feels like a pretty sweet passive income generation opportunity...
- In the states, it is usually 6 months. In London which is the location I'm having most problem in finding hires, they ask for 1~2 years. I am seriously debating going to London and networking to find a candidate instead but I have no background in the tech culture there so it might be too rash of a judgement.
- Read my response above. There can be a legal need to separate employee status if they want them as contractors. Otherwise it's a service to match employee and employer would not have found each other otherwise. Higher pay doesn't solve the issue of both parties would never have been in contact in the first place, which is the value that agencies bring.
- We are hiring full-time with benefits. We are not looking into contract positions. I was thinking about reaching out to the candidates directly, but I also remember that when I got approached by a recruiter, they ask you to sign off an agreement to only work with them if lead was initiated by them.
- If they're not a retained search firm and just one spamming you candidates (usually editing out candidate name and contact info), the candidate don't know who they're being presented to. I would consider them fair game.
Different story if your company asked the agency to do a search for you and then you go behind their back to contact candidates they already presented to you.Aug 30, 2017 1
- Also, this a great way for legit recruiting agencies or recruiters to see this post and say...definitely not wasting time with VRenetic then you're really screwed. But hey, best of luck bud!
- New Wumm63Of course it's legal and it's standard. They get a fee corresponding to a chunk of the annual salary and in exchange, do all the searching, screening and contacting for you. If the new hire leaves within XX days, however, the fee is usually refunded. If you're too busy to deal with all that it's valuable. Or hire your own in-house recruiters to do all that - but they have their own salary/benefits. Or, spend the time doing it yourself.
- Years and years ago I had a recruiter take his cut for 2 years, but truth be told he was worth every damn dollar he got (and still is). He wouldn't be of much use for the Unity skills you are looking for though as it's not what he specializes in I'm afraid, nor is he in London 😂 I worked in London in the late 90's and from what I recall the hiring process was very recruiter driven at the time. Hardly any companies hired directly if memory serves me correctly but of course, many years have passed since!
- You do realize the company is the one paying and not the candidate??
- That's absolutely false. In the US I've never heard of an agency asking the candidate for money. Furthermore, I don't see how you can attribute 100% of that fee as a cost that you otherwise wouldn't have incurred without using an agency. Even if you recruit yourself you still have to pay for tools (like LinkedIn) to connect with candidates and pay for the time that would have been better spent doing something else, like engineering.
- What agency is asking candidates for money to place them? I've never seen that. The company pays the agency on contingency, only if a placement is made. Also, LinkedIn is free unless you want to send inmails to people you are not connected with. If you don't need to do that there's no reason to pay...
- Yes, I pay to have the in-mail function. There are few other perks I used to be fascinated with. No, we do not have a contract with an agency. I'm getting contacted by recruiters. Just because you haven't seen it, doesn't mean you can just say it doesn't exist and magically everyone with different experiences than you would disappear.
- Best Buy / Ops ToafYou're either a client or a source. That 25% might save you turnover down the road...