Market research: Is it true recruiters are compensated by getting x% of first year's salary of new employee?
It's basically a sales role from what I know. They have targets on how many qualified candidates they need to push through. Then they get bonuses on the hires. Sometimes.
Long story short, yes, if they're head hunters or work with an agency. Typically that percentage is negotiated upfront and then the recruiter is paid that percentage upon successful start of the hired candidate. Depending on whether the head hunter is a lone-wolf (owns their own company) vs an employee of a larger agency, the actual recruiter's true take home can very widely. In-house recruiters almost always are paid a base salary.
That would incentivize them to offer a higher salary. Why would a company pay recruiters to cost them more? Unless you mean external recruiters (e.g, head hunters)?