Employment Agency Fees
Candlefocus EditorEmployer-paid fees are the most common form of payment and are beneficial to employers who are looking to utilize a large recruitment network. The recruitment agency will carry out the initial screening, advertising and recruitment process, and select candidates to present to the employer. In turn, the company pays a fee to the recruitment agency when they successfully select someone who is suitable to fill the position. Employer-paid fees can offer businesses the peace of mind that come with knowing that qualified recruiters have taken on a large part of the recruitment process.
Applicant-paid fees are less common, and may be used by employers as a way of ensuring that the candidates are more seriously considering the positions. During the term of the contract, a portion of the worker’s hourly pay is deducted for their agency fee prior to the worker being paid. This can be seen as a desirable outcome for the employer, as often times applicants who apply for positions may be unsure if they actually want the job or simply apply out of curiosity.
In instances where employers use applicant-paid fees, it is important to make sure that the candidate understands the terms and conditions of the fee structure prior to commencing the contract. To be compliant with applicable law and regulations, employers should inform the candidate of the fee in writing as well as the full breakdown of the fee. All of such details should be made available in order to be transparent and ensure that any fees are legal.
Whether employer-paid or applicant-paid, employment agency fees are a common feature of the recruitment process. They can be beneficial to employers, workers, and recruitment agencies alike, if managed correctly. Despite the fee structure, it is important to ensure that the candidates receive the best possible recruitment experience and that the services of the recruitment agency are up to the standard of the industry. Ultimately, the aim should be to ensure that both the employer and the employee get what they require from the recruitment process, with the fee structure being a reward for the success of the match.