General Notes
This information is useful for reviewing any kind of recruiting for junior or senior candidates from agencies who scout for talent. This is not meant to be used for contracts with outsourced development outfits
Our preferred terms (contingency basis)
- No upfront fee or retainer.
- No exclusivity. Don’t mention this unless they ask.
- Commission %
- 17.5% of Remuneration for junior roles
- 20.0% of Remuneration for senior roles
- OR a fixed fee regardless of salary if the fixed fee is lower than 17-20% of expected base salary
- If candidate does not work out for whatever reason, two scenarios
- Candidate does not work out within three months, the agency will find a replacement for free OR then it is a sliding scale of refund:
- 100% within 3 months
- 50% between 3-6 months
- 0% after six months
- Candidate does not work out within six months, the agency will find a replacement for free with no refund
- Remuneration is defined as ONLY basic pay (if it is not a fixed fee).
- No guaranteed bonus, variable bonus, car allowance or any form of other= compensation should be included in Remuneration to calculate the fee.
- Remuneration for contract workers or fixed-term employment contracts is= only for the period pro-rata when the applicant has been working with us.<= br>
- Refund mechanism. If candidate’s role is terminated for whatever reason (candidate leaves on their own, redundancy, poor performance, disabil= ity, death), the agency will find a replacement for free OR will agree to refund on the below sliding scale of refund:
- 100% within 3 months
- 50% between 3-6 months
- 0% after six months
- Re-engagement
- Permanent - if re-engaged within six months of termination, any refund made needs to be paid back. If re-engaged after six months from termination, no fee is payable.
- Contract - if re-engaged within six months of termination, Introduction= Fee only payable on the term of the new engagement. If there are multiple = re-engagements, the maximum fee payable is the commission % of the lower of= 12 months or the total engagement period
- Payment terms - 45 days from invoice date
- Invoice date - on the date the candidate starts work (NOT the date the = offer is accepted)
Our preferred terms (retained basis)
- Retainer
- 25% upfront and 75% on successful appointment.
- If pushed, concede to 33% upfront and 67% on successful appointment
- Market norm is - 33% on appointment, 33% on shortlist and 33% on successful completion.
- Exclusive
- Commission %
- 20% of Remuneration - these will all be senior roles
- If pushed, agree to 25% as a maximum
- Points 4-8 under Preferred Terms (Contingency Basis) also apply here that the 100% refund mechasim applies for up = to six months (not just three months).
Others
Check that any terms signed are consistent with any previously signed agreements. If you want the latest agreement to be the master, then say so i= n the latest agreements.
- 30 days from invoice
- 20% of base salary only
- 100% refund if candidate leaves or employer terminates within three months OR
- 6 month free replacement