Let’s talk about Recruitment margins…
How much is too much? It’s a valid question in a world where most Clients and even some Candidates have questioned the margins charged by Recruiters.
Opinions on this point vary wildly depending on which Recruiter you talk to; from “Charge as much as possible to make as much as possible”, to “I am 100% transparent on my margin to both candidates and clients”. One of them promotes a long term career built on long term relationships, the other is a one way ticket to career suicide.
There are a lot of hidden costs to contract recruitment. For example, invoice financing, insurance, admin, not to mention salaries, rents and general fixed costs faced by recruitment firms. In general what’s left after deductions is very little and is eaten up largely by clients who take more than 30 days to pay **ahem** please stop doing this.
I was always taught to not reveal my margin to candidates or clients… but I did it anyway. I completely disagree with that view because transparency builds trust and from pretty early on in my recruitment journey, I knew I wanted a career not just a job. It’s quite hard to judge that sweet spot on “how much is too much?” margin to charge, but I’d summarise it by saying that a good deal has to feel good to everyone. All too often clients and candidates feel ripped off and that’s just not right.