Re:Don’t Feed the Beast – The Great Tech Recruiter Infestation
by finance-geek on Friday October 16, 2015 @02:22PM
(#10401148)
This is absolutely on point. As I said in another comment, often, HR departments outsource the entire search to recruiters. Here in the US, the typical cut is 20 to 75%. For those recruiters who have negotiated higher cuts like 75%, it is usually due to an executive-level relationship...but they don't keep the full 75%, they then sub-source the talent from secondary or even tertiary recruiters.
Lets take an example -- the worker makes 100/hr, the tertiary (recruiter who actually found the talent) gets 25/hr, the secondary (who vetted from multiple tertiaries) gets 25/hr, the primary (who plays golf with the CIO) gets 25/hr.
So perhaps the worker is well off at 100/hr, but this is a huge loss to the company -- three extra parties have taken a cut just because the HR manager didnt want to vet their own people. If the skill-set is worth more than 100/hr, then the company cant recruit the right talent, and complains of "shortages" whereas in reality, the "shortage" is because too many third parties have their hand in the cookie-jar leaving too little to pay the actual market wage.
Absolutely true.
Simplifying a little, there are companies here that everybody wants to leave and companies that everybody wants to join. It's difficult to leave the first category since the employee's skills have atrophied (see https://blog.stackoverflow.com/2015/09/how-to-be-awesome/).