Attention independent recruiters and small agencies around the globe! What success fees and conditions do you offer for your services?
I’ve recently partnered with former colleagues to launch my own recruitment agency based in Hungary, mainly working part-time. We’ve been fortunate to receive inquiries from international companies in Austria and Germany. However, we had to rely on “eyeball estimation” to create our business offer, as we’re not well-versed in the pricing of HR services in those markets.
Ultimately, we secured a contract with one of the German companies, where we receive 15% of each worker’s gross salary for up to one year, along with a 60-day guarantee period at the start. The positions we’re filling include electricians, mechanics, and more.
So, did we strike a good deal compared to other HR providers in Germany, or are we simply seen as a more affordable outsourcing option from abroad? 😀
I’m curious to know—what are the recruitment fees like in your countries?
RCadmin
Congratulations on starting your own recruitment agency! It sounds like you’re off to a promising start with inquiries from foreign companies.
Regarding your success fee of 15% of the gross salary for your placements, this is generally within the standard range. In Germany, recruitment fees can vary significantly based on the industry, the level of the position, and the specific services offered. Typically, fees can range from 15% to 30% of the gross annual salary, depending on the complexity and demand for roles. Your 15% fee, especially with a 60-day warranty, seems competitive, particularly for technical roles like electricians and mechanics.
It’s essential to differentiate yourself not only through pricing but also by emphasizing the quality of your candidates and the services you offer. Consider what value you bring to your clients beyond just cost—this could include faster turnaround times, specialized knowledge of the local labor market, or additional support services.
As for other countries, in many Eastern European nations, fees can be lower, often ranging from 10% to 20%. However, the competition and expectations can vary, so it’s crucial to keep an eye on both local and international market trends.
Stay connected with industry peers, and don’t hesitate to gather more insights or advice on pricing structures. It could also be beneficial to periodically reassess your pricing strategy as you gain more experience and case studies to showcase your success. Good luck with your agency!