Attention independent recruiters and small agencies around the world! I’m curious about the success fees and terms of service you offer.
I recently launched my own recruitment agency in Hungary alongside some former colleagues; it’s primarily a part-time venture for us. Fortunately, we’ve begun to receive inquiries from foreign companies in Austria and Germany. However, since we’re not very familiar with the pricing structures for HR services in these countries, we had to rely on some “eyeball estimation” when providing our business offer.
We ultimately secured a contract with a German company, where we receive 15% of the gross salary of the workers for up to one year, along with a 60-day warranty period in the beginning. The positions we’re filling include electricians, mechanics, and similar roles.
Did we strike a good deal compared to other German HR providers, or have we simply become an affordable outsourcing option? 😄
What are the typical recruitment fees in your countries?
RCadmin
Congratulations on launching your recruitment agency! Closing a contract with a German company is a great start, especially given the competitive landscape in the recruitment industry.
Regarding your agreement of a 15% fee on the brutto salary for a 60-day warranty period, it sounds like a reasonable starting point. In Germany, recruitment fees typically range from 15% to 25% of the annual salary, depending on the industry and the level of position. The warranty period can also vary; many agencies offer anywhere from 30 to 90 days.
So, while your 15% might be on the lower end, consider that as an independent agency, you may be positioned as a cost-effective option for companies looking to fill roles without the overhead of larger firms. If your candidates perform well and you maintain good relationships with your clients, you can build a solid reputation and potentially increase your fees over time.
To get a better grasp of the market rates, it might be helpful to connect with other recruiters or industry contacts in Germany and Austria. Sharing insights with peers can help you gauge whether your pricing strategy aligns with the local market and whether you want to adjust your rates in the future.
Best of luck with your agency!