DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post

**DrJonson** · 12-13-2009, 01:25 AM

The company pay the commission to the agency i.e. if the commission is 30%, you cost the company that employs you 130% of your basic salary in year one; you don't get paid any less or pay anything as an individual.

Exactly. The recruitment company will charge the client company a % of a placed individuals 1st renumeration as a fee. What the recruitment company passes onto their consultant who actually make the placment is another story entirely though. Some agencies are good, others are not at all.

These costs and commissions do not affect the job seeker at all. All reputable agencies work on a "no-win-no-fee" basis with their end company clients. Basically, we don't make any money unless we actually place someone. We can spent hours finding and qualifying candidates, agreeing salary etc - only to have our client not select them, or be beaten by competition.

Some employers can be sneaky too. Here in The Netherlands, skilled workers recruited from outside of the country can claim a "30% tax ruling" for 10 years, whereby the first 30% of their income is tax free (say hello to 70% NET retention). Some employers will make this application for someone, but then keep half of the figure for themselves (so they have to pay the person less gross salary). Very sneaky. The agency I work for makes this application for its successful candidates free of charge, as part of our service. Getting it granted does not save us any money, but it does make our contractor happy, which is extremely important to long-term retention and professional relationships.

12-13-2009, 01:25 AM	#95
DrJonson Join Date Oct 2005 Posts 411 Senior Member	The company pay the commission to the agency i.e. if the commission is 30%, you cost the company that employs you 130% of your basic salary in year one; you don't get paid any less or pay anything as an individual. Exactly. The recruitment company will charge the client company a % of a placed individuals 1st renumeration as a fee. What the recruitment company passes onto their consultant who actually make the placment is another story entirely though. Some agencies are good, others are not at all. These costs and commissions do not affect the job seeker at all. All reputable agencies work on a "no-win-no-fee" basis with their end company clients. Basically, we don't make any money unless we actually place someone. We can spent hours finding and qualifying candidates, agreeing salary etc - only to have our client not select them, or be beaten by competition. Some employers can be sneaky too. Here in The Netherlands, skilled workers recruited from outside of the country can claim a "30% tax ruling" for 10 years, whereby the first 30% of their income is tax free (say hello to 70% NET retention). Some employers will make this application for someone, but then keep half of the figure for themselves (so they have to pay the person less gross salary). Very sneaky. The agency I work for makes this application for its successful candidates free of charge, as part of our service. Getting it granted does not save us any money, but it does make our contractor happy, which is extremely important to long-term retention and professional relationships.
	Quote