Someone tell me how recruiters get paid? Shady as hell.

[Zeze]

They always ask first for the hourly rate for contract positions. I usually never throw out my number first and let them answer the rate first.

Then I ALWAYS ask for more. If they say $75/hr, I say $85. Then they usually say yes. Wtf does this mean, if I had agreed to $75, they pocket the $10/hr? That's a HUGE sum of money ($20,000/yr).

The same recruiter came back to me and said the client lowered the rate down to $65/hr. I said, no go, the lowest I can do is $75.

Then he says he'll meet me at $70/hr. Wtf is this, isn't he effectively lying to me then?

If client said $65, how can he turn around and agree at $70.

Shady as fvck.

 

[Vdubchaos]

Either per hour (clearly) or a lump sum (if it's none contract).

My employers pays something like 10-20k PER hire to the agency they use.

It's crazy....they do almost NOTHING but post an ad in the paper and filter resume.

 

[purbeast0]

recruiters get paid a % of your salary, from the company that is using them. the higher the salary you will make the more money they make. usually it also includes you being at the position for a certain set amount of time before they get their money. or they will get 1/3 of the money every 3 months for 9 months, or something like that. it's just what they agreed upon with the company that hired them.

they are huge in the software industry, simply because they are more knowledgable than the HR people are at a company. recruiters and head hunters will bring in better candidates than people simply submitting a resume to the company online and some HR person looking at specific keywords.

 

[s0me0nesmind1]

I would say thats an interesting question... except I'm too busy not giving a shit about recruiters and their life of sorrow and misery.


edit: Define recruiter.

A) There are COMPANIES whose purpose is to RECRUIT for OTHER companies (thus a recruiter)

Or.

B) There are PEOPLE (probably working in HR) whose purpose is to RECRUIT for THAT company (thus a recruiter)

Which are you referring to?

 

[Zeze]

recruiters get paid a % of your salary, from the company that is using them. the higher the salary you will make the more money they make. usually it also includes you being at the position for a certain set amount of time before they get their money. or they will get 1/3 of the money every 3 months for 9 months, or something like that. it's just what they agreed upon with the company that hired them.

they are huge in the software industry, simply because they are more knowledgable than the HR people are at a company. recruiters and head hunters will bring in better candidates than people simply submitting a resume to the company online and some HR person looking at specific keywords.

Something's amiss.

Then why do they always try to lowball first and agree to higher amount? If this were true, they'd Always try get you paid highest.

If my asking increased rate is almost instantly agreed at the same phone convo, why would they hide it first?

I've spoken to 10+ recruiters, they're all exact same pattern.

 

[Zeze]

I would say thats an interesting question... except I'm too busy not giving a shit about recruiters and their life of sorrow and misery.


edit: Define recruiter.

A) There are COMPANIES whose purpose is to RECRUIT for OTHER companies (thus a recruiter)

Or.

B) There are PEOPLE (probably working in HR) whose purpose is to RECRUIT for THAT company (thus a recruiter)

Which are you referring to?

Yes there are in-house HR recruiters. But typically most of them out there are recruiting companies.

(the ones you hear from the most, spam you with emails, and phone calls)

 

[EagleKeeper]

The client posts a position with a max rate
Recruiter has a table that says the required overhead for his company.
that generates the max the recruiter will "want" to pay
Recruiter knows roughly what the market is and low balls you.
They will then compromise up to the max for their company.

Unless the client will pay more that is it.
However, they will not tell the client what they pay you.

I have has increases up to $5 more after the client has talked to me in many cases.
I had one in San Jose that the client was so impressed that they went up $30.

 

[Vdubchaos]

Something's amiss.

Then why do they always try to lowball first and agree to higher amount? If this were true, they'd Always try get you paid highest.

If my asking increased rate is almost instantly agreed at the same phone convo, why would they hide it first?

I've spoken to 10+ recruiters, they're all exact same pattern.

Because what Pure described might be true for SOME recruiters but not ALL.

It all depends on the agreement they have.

Clearly, in your situation they get % of your hourly pay.

 

[purbeast0]

Something's amiss.

Then why do they always try to lowball first and agree to higher amount? If this were true, they'd Always try get you paid highest.

If my asking increased rate is almost instantly agreed at the same phone convo, why would they hide it first?

I've spoken to 10+ recruiters, they're all exact same pattern.

it isn't up to the recruiter how much you get paid. maybe they know what the asking price the company is trying to sell the position for and they want you to agree to that one first.

in the end, both you and the recruiter make out better if you get the job.

ive never seen a recruiter try to lowball though, all of the ones i've worked with ask me how much i want to make, and they will tell me if it's a realistic salary or not. ive never once had the recruiter try to lowball me.

unless of course, that recruiter works for the company you are going to be hired for. if it's an internal recruiter, then they are probably getting paid a salary + something else. maybe they do get that $10k in your instance. but again, this would ONLY be if it's a recruiter for the company you are getting hired for, not an external one. but that is most likely, they can make their own deals with the company hiring them.

 

[PowerYoga]

the one I talked to gets a percentage of the annual, which averaged out to around 15-20k a person.

 

[EagleKeeper]

<snip>
ive never seen a recruiter try to lowball though, all of the ones i've worked with ask me how much i want to make, and they will tell me if it's a realistic salary or not. ive never once had the recruiter try to lowball me.
<snip>

About once a week, I get emails/phone calls from these Indian related agencies.
RA: We have a job that you will be good at. What is your rate
EK: $65 W2
RA: We can only pay $45
EK: Sorry not interested
RA: Because we think you are such a good match we can go to $50
EK: I told you my bottom line - if a lot of OT and great location maybe $60
RA: highest we can go is $52 - Is that OK?


From a US recruiting agency
RA: We have a job that you will be good at. What is your rate
EK: $65 W2
RA: We can only pay $55
EK: Sorry not interested
RA: Is that you bottom line
EK: Yes, unless a lot of OT and great location maybe $60
RA: OK I have noted your rate and will contact you if something else comes up closer to your rate

 

[Zeze]

About once a week, I get emails/phone calls from these Indian related agencies.
RA: We have a job that you will be good at. What is your rate
EK: $65 W2
RA: We can only pay $45
EK: Sorry not interested
RA: Because we think you are such a good match we can go to $50
EK: I told you my bottom line - if a lot of OT and great location maybe $60
RA: highest we can go is $52 - Is that OK?

LOL this is so true LOL.

Oh god. Why are all recruiters Indian? And they're horrible at English, I can barely understand them.

They talk all emotion-less too. All the Indian ones I've dealt with, I never hear from them again.

 

[CPA]

Something's amiss.

Then why do they always try to lowball first and agree to higher amount? If this were true, they'd Always try get you paid highest.

If my asking increased rate is almost instantly agreed at the same phone convo, why would they hide it first?

I've spoken to 10+ recruiters, they're all exact same pattern.

Because they're salespeople, like any other salesperson. I would ask why it's presumed there's no room for negotiation be either of the 3 parties. them low-balling, then negotiating doesn't make it shady. It's called the barter system.

 

[jaedaliu]

Because they're salespeople, like any other salesperson. I would ask why it's presumed there's no room for negotiation be either of the 3 parties. them low-balling, then negotiating doesn't make it shady. It's called the barter system.

I agree. except not with the word barter. Barter is exchange of goods without using currency. Haggling system?

However, the "the lowest the client will go is $65/hr. Oh, you want $75? The client will go $70." is VERY shady. If it bothers you (it should because you want to deal with people you can trust, even though you shouldn't really trust them because their best interest is their dollar, not yours) don't work with those recruiters any more.

 

[CPA]

I agree. except not with the word barter. Barter is exchange of goods without using currency. Haggling system?

However, the "the lowest the client will go is $65/hr. Oh, you want $75? The client will go $70." is VERY shady. If it bothers you (it should because you want to deal with people you can trust, even though you shouldn't really trust them because their best interest is their dollar, not yours) don't work with those recruiters any more.

you're right, Haggling system.

This is no different, though, then a full-time position offer. I've had employers say "I can pay you X", I say "I need Y". their response "okay, I can give you Z." It's negotiation.

How many of us have said they could only pay x amount for a car, then come up and meet the salesperson in the middle? I suspect most. We're not going to give the salesperson our full hand, just as they won't to us.

 

[clamum]

it isn't up to the recruiter how much you get paid. maybe they know what the asking price the company is trying to sell the position for and they want you to agree to that one first.

in the end, both you and the recruiter make out better if you get the job.

ive never seen a recruiter try to lowball though, all of the ones i've worked with ask me how much i want to make, and they will tell me if it's a realistic salary or not. ive never once had the recruiter try to lowball me.

This has been my experience as well (software industry). I've only had good experiences with recruiters.

 

[QuietDad]

Contractor recruiters are working with job requirements that the employer has already said "We will pay you $xx per hour for a job doing..." and they're looking for someone who will take the least per hour to fill it. 9 times out of 10 the recruiter is a partner/principal in the business.

Employee hire recruiters are getting pay a percentage of your first year salary after you've last 6 months or so, payed by the company hiring. These people will work at getting you a better salary than the contractors because the more you get paid, the more they make, versus a contractor where the more you make, the less they do.

 

[Markbnj]

Contractor recruiters are working with job requirements that the employer has already said "We will pay you $xx per hour for a job doing..." and they're looking for someone who will take the least per hour to fill it. 9 times out of 10 the recruiter is a partner/principal in the business.

Employee hire recruiters are getting pay a percentage of your first year salary after you've last 6 months or so, payed by the company hiring. These people will work at getting you a better salary than the contractors because the more you get paid, the more they make, versus a contractor where the more you make, the less they do.

This. The guy OP is talking to is actually the contractor, and is subcontracting the work. He is getting x dineros for the job and gets to keep the spread between that and what he pays the subcontractor.