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Recruitment consultant fees in Singapore

by Tom Fogden
July 2, 2021 - Updated on November 21, 2022
0
Recruitment
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The growth and profit of a business depend to a large extent on the skills, work ethic and experience of the employees. Hence businesses of all sizes are always trying to get the best possible employees who will help the business grow. While large companies have a full fledged human resources (HR) department who will help the business hire employees, many of the smaller companies prefer to outsource the recruitment to a consultant. They would like to find out the cost of recruitment consultants in Singapore, so that they can plan their company finances accordingly.

Business model

The fees charged by a recruitment consultant depends to a large extent on the business model. In some cases, smaller companies do not want to have a full-fledged HR team, they may outsource all the recruitment and HR activities to the recruitment consultant. In this case, the consultant may charge a monthly retainer from the business for all recruitment activities. The actual monthly retainer will depend on the size of the client business, a number of employees, and the number of man-hours the consultant spends doing work for the client.

Salary linked

One of the most popular business models which a large number of recruitment consultants are using is to charge the client one month’s salary for the employee who is recruited. This business model is popular among companies since they will have to pay the consultant a fee, only if the consultant can help them recruit a suitable employee. If the consultant cannot find a suitable employee, no fee has to be paid. The consultant will search for candidates on behalf of the company based on the job profile, qualification, and experience required and fix a suitable interview date and timing.

Fixed fee

Usually, top recruitment consultants are very experienced and have a large number of clients. In some cases, the client may not approve of a particular candidate though he is otherwise suitable for the job, or the applicant rejection rate may be high. The consultant will have already spent many hours searching for suitable candidates, checking the resumes available in the company database, and interacting with job seekers. So in these cases, the top consultant may charge a fixed fee for the entire job search, or agree to send a specified number of candidates for the job.

Other considerations

The fees will also differ depending on the qualifications, experience, and skills required. For entry-level jobs, it is usually easy to find suitable candidates so recruitment consultants usually do not charge more for finding suitable employees. Usually, for top-level jobs in large companies, the senior managers will often not apply for jobs advertised, since this could adversely affect their career prospects in the company where they are currently employed. So in these cases, the recruitment consultant should have his database of prospective candidates, who he can contact and discuss the opportunity with, keeping all the information confidential. Thus finding a candidate for a top-level management position requires far more effort from the recruitment consultant, and he will usually charge a far higher fee.

Tom Fogden

Tom Fogden

Tom Fogden is a writer for Twollow with a range of experience in the world of tech publishing. Tom covers everything from cybersecurity, to social media and website builders when he's not reviewing the latest phones, gadgets, or occasionally even technology books.

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