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Most agency recruiters have a base salary and are paid commissions by placing candidates with companies they recruit on behalf of. When an agency recruiter places a candidate on a direct-hire contingency basis they are paid a percentage based fee calculated off the job seeker's first-year salary.
How do freelance recruiters get paid? Freelance recruiters are paid a commission when they place someone in a job. If the company hires the candidate found and presented by the recruiter, the commission will be due. Freelance recruiters are not paid unless the company hires a candidate they present.
The standard recruiting fee for agencies is between 15% and 20% of the first-year salary for a permanent job the recruiter is filling. Some agencies may charge as much as 25% for hard-to-fill roles. Fees can vary significantly across industries, market conditions, and specialization of the position.
A Recruitment Agreement is a document between two parties, a recruiter and a client, whereby the recruiter agrees to provide recruitment services for the client.
With contract placements, a recruiter does not receive their fee up front. They usually receive it on a weekly or bi-weekly basis, earning money for every hour the contractor works. Here's a prime example: Let's say a recruiter places a software engineer at his client's company for a 10-month assignment.