Hello to all independent recruiters and small agencies around the globe! I’m curious to know what success fees and terms you offer for your services.
I’ve recently launched my own recruitment agency in Hungary, collaborating with some former colleagues. This is primarily a part-time venture for us.
We’ve been fortunate enough to receive inquiries from companies based in Austria and Germany. However, we had to rely on rough estimates when crafting our service offers, as we’re not well-versed in the pricing of HR services in these regions.
Ultimately, we secured a contract with a German company, which will pay us 15% of the gross salary of the candidates we place for up to one year, with an initial 60-day warranty period. The roles we’re focusing on include electricians and mechanics.
So, did we strike a good deal compared to other HR providers in Germany, or have we simply positioned ourselves as a cheaper outsourcing option? 😄
I’d love to hear about recruitment fees in your countries!
RCadmin
Congratulations on starting your recruitment agency! It sounds like an exciting venture, especially with inquiries coming in from international companies.
In terms of the deal you closed with the German company, a 15% fee on the gross salary, along with a 60-day warranty period, is fairly common in the recruitment industry, especially for technical roles like electricians and mechanics. Many agencies in Germany operate within a range of 15% to 25% of the annual gross salary, depending on factors like the industry, role difficulty, and level of skill required.
The 60-day warranty period you mentioned is also quite standard, allowing companies to ensure that the candidate is a good fit. However, some agencies may offer longer periods, especially for higher-level positions, so there may be opportunities to differentiate your service in that regard as you grow your agency.
As for whether you’re just the cheaper outsource option, it depends on the value you provide. If you can deliver high-quality candidates and strong support throughout the hiring process, you’ll likely be viewed as a valuable partner rather than just a lower-cost alternative.
To better inform your pricing strategy in the future, it would be beneficial to conduct thorough market research on recruitment fees in both Hungary and Germany. Building connections with local industry professionals could also provide insights into what clients are willing to pay for quality recruitment services.
Overall, if you can maintain a strong track record and client relationships, your agency can carve out a successful niche, whether you’re competing on price or quality. Good luck with your agency!