Payment to recruitment consultant for referring a consultant?

Question

I have been working with a recruitment consultant (by this term I mean a person / firm which focuses on referring a candidate for an opening within a company). Until now, this had been for full-time roles, so if a candidate is placed successfully, the consultant takes 8.33% (1/12) of the yearly salary of the candidate.

For a certain project, I need to work with a freelancer, who would get paid per hour, or on a per-project basis. What would be the appropriate way of paying the recruitment consultant?

Answer 1

Paying for a recruiter for a temp or contract role is normally handled in one of two ways:

1. Finders fee

In this scenario, you will pay them for the hire, and then pay them after a month of successfully recruiting a candidate. This is usually comparable to hiring a permanent member of staff, adjusted for time scales

2. Contract fee

If the recruitment consultant is going to "handle" the employee, then they often charge acontract fee on top of the hourly rate. It is usually quite high, around 25% on top, but they will handle everything.