Doctors
Professors
Farm Laborers
Computer Programers
poor/average people who want to spare money don't need them.Real estate agents
Travel agents
Sales associates in retail stores (i.e. salespeople at Best Buy, GAP, etc)
Any salesperson who sells products where they do not originally manufacture them
What do you think? These occupations are inefficient and a waste of money.
Curious how you arrived at that number.. because you're probably wrong.
But the value they add is more for the company than it is the candidate. Most candidates served by a headhunter could get a job themselves if they wanted to
He's not that far off. For direct placement, fees can range from 20-40% of first year total monetary compensation (including expected bonuses) depending on whether it's a contingency or retained search.
And, you're right, more often than not they are working for the company.
That does not mean you would get 20%-40% more salary. In fact as my experience as a headhunter I usually got candidates more than they were asking for (because that was in my own best interest, and my clients, event if they didn't realize it).
Many companies use recruiters in place of hiring more HR staff of their own. That's where the 20%-40% fee comes from.
And don't get me started about people pitching about recruiters stealing a chunk of their hourly rate as consultants. If you are good enough as business development to find your own contracts, and insure yourself, nobody is stopping you.
That does not mean you would get 20%-40% more salary. In fact as my experience as a headhunter I usually got candidates more than they were asking for (because that was in my own best interest, and my clients, event if they didn't realize it).
Many companies use recruiters in place of hiring more HR staff of their own. That's where the 20%-40% fee comes from.
And don't get me started about people pitching about recruiters stealing a chunk of their hourly rate as consultants. If you are good enough as business development to find your own contracts, and insure yourself, nobody is stopping you.
When I worked for a recruiting agency, I started a job at $18 an hour under the agreement that it would be temp to hire if it worked out. When the company decided to hire me I was immediately increased to $20/hr. When I asked my boss about this, he said that the $20/ hr was the exact amount that the company was paying the agency for my employment, so when I was hired full time directly by the company, they passed that same salary on to me.
Unless my boss was mistaken, then the agency was making 10% of my salary while I was temping.
I never said they would get 20-40% more in compensation. Actually, I never said any of the above.
I'm also aware that the company picks up the tab...well aware. In my experience, headhunters are a waste of company resources when you aren't a small-medium size business.
I still remember utilizing RPO for a multitude of difficult to fill positions in a niche industry and it costing me around $1.5mil in total. Quality of hire and time to fill were horrible and definitely not worth the cost. Built up a staffing department for a 1/10 the cost on an annual basis and improved QOH and TTF by roughly double. With annualized turnover and our growth rate, I was able to justify that cost on an ongoing basis for three years. I left after that, but they are still running it in house.
Cool. Sounds like you actually got a great deal. Try calling 100 companies every day for a month to land yourself that contract. Oh, and be good at negotiating and know the current market rates, too, otherwise you'll probably end up billing yourself at $18/hr anyway.
A typical pay/bill rate where I worked was $50/$90. Yes it's fair. Factoring in burden (insurance/ health care) that's is about $25/profit per hour. Again if you want the $90 you're free to find it yourself, nobody forced you to use the agency. (hint: you will not get $90/hr on your own)
I'm not complaining, and if I ever get in a situation like that, I'll be returning to that agency. I was just surprised that it works like that, where they just take 10% off the top of your pay. I thought they got a 1 time payment for finding you the job or something similar, but they just keep collecting. I was employed as a temp for 1.5 years, so they received 10% of my pay for that entire time. They must make some serious money.
what's wrong with a travel agent?
if I wanted to put together a complex trip (eg: multiple foreign countries/cities) and didn't want to devote weeks of researching all the travel arrangements myself, why not consider hiring an expert?
couldn't the job of a pharmacist really be done by a vending machine?Eh why?
They are unneeded, pure and simple. Craigslist and other online classifieds can do the same job, oh, and without taking a cut.
I gladly pay a RE to do the listing and show the home, especially when the home is out of state.
couldn't the job of a pharmacist really be done by a vending machine?