How much does it cost to use a recruiter?

The standard fee in the executive search industry is between 25 percent and one-third of the first year's compensation. [top]

There is a misconception among employers that the cost of a hire equals the cost of the ad. Nothing could be further from the truth. The cost includes salaries and benefits of the in-house hiring staff, plus those of managers involved in hiring, loss of productive or billable time while they're involved in recruiting, entertainment expenses, source development costs and all of the overhead expenses involved. A recruiter's stock-in-trade is his or her integrity and reputation for finding someone better than an organization could find on its own. The candidate selection process is not a matter of pulling a resume from a file cabinet or database. For any given position, the recruiter may develop a list of a hundred or more possibilities. Each candidate must be called and evaluated against the position specifications, including screening for "fit." Then those who make it through that process must be interviewed and narrowed to three to five candidates to be submitted to the client. When you consider the years of experience the recruiter also brings to bear along with his/her extensive knowledge of the marketplace, the cost is minimal. Talent is an organization's lifeblood. The fee paid to a recruiter is a shrewd strategic investment, not an extraneous expense. [top]

Legal recruiting is a highly specialized industry, represented by a number of companies who have a proven track record in the placement of General Counsel in national and international corporations. Legal search firms are intimately connected with the legal community in both law firms and corporations. You will most likely spend less time educating them and get faster results than you can from a generalist executive search firm. Not all legal recruiters are equal, of course; but the membership of the National Association of Legal Search Consultants is a good place to start. [top]

Not if you have a good relationship with a good recruiting firm. When two or more recruiters are working on the same position, their paths are bound to cross. The prospects, those highly qualified people you are looking to hire, will have heard about the position from more than one source. And while the good recruiter may impress them, the not-so-good recruiter may have turned them off. It is possible to "spam" your organization: to make it appear that you are recruiting prospects indiscriminately. Since the best prospects aren't looking - they're conscientiously working for someone - they need to be assured that their time is not being wasted and that their candidacies will be treated with the utmost confidentiality. [top]

Legal recruiters typically work under three different types of arrangements:

• "Contingency" where you only pay for their services if you hire a candidate referred by their firm;
• "Container" or "Partial Retainer" where you pay a portion of the anticipated fee on commencement of the search and the balance when and if you hire a candidate referred by their firm; and
• "Retained" where the fee is estimated at the beginning of the search and generally paid in three equal installments. [top] 

Why would my firm want to consider either a "container" or "retained" relationship?

If your search is not "opportunistic" (e.g., a law firm looking for one or more associates in a particular area) and you want to assure yourself of a recruiting firm's full attention and exclusivity on candidates, a "container" or "retained" relationship may be in your self-interest. When working on a contingency basis, recruiters must serve many clients at a time to maximize their odds of placing someone. The higher the level of the position (e.g., a Senior or General Counsel in a corporation), the more likely you are to want closer attention to your specific search. [top]

It's just as important as any other professional relationship your organization maintains. You will get faster and more meaningful response because the recruiting firm is already familiar with your organization, its culture, personalities, etc. Your recruiter can also assist you in keeping up with industry trends, compensation, etc. Like any good business person, your recruiter is more likely to give his/her best clients the best possible service, even on a smaller assignment. [top]

Yes, there are if you are not dealing with a reputable firm. If you're paying on a contingency basis, there may be no financial risks. However, your organization may be misrepresented, thereby offending good, potential employees; or that poor recruiter will waste your time or be careless with confidential information. [top]