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How do agency placement fees get determined on RecruitiFi?
How do agency placement fees get determined on RecruitiFi?
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Written by RecruitiFi
Updated over a week ago

How is the agency placement fee set on RecruitiFi?

If you are a Legacy Agency (preferred vendor) for an Employer, they may set your placement fee on RecruitiFi. They will generally set that fee at the rate of your previous contract with the Employer.

If you are a Community Agency, there is a set payout amount determined by country, that is then slightly marked up for the Employer. Please see this article for the agency earning rate for your country.

Does RecruitiFi take any processing fees?

Virtually every VMS on the market is a supplier-funded model, meaning the Employer will pay their percentage on a hire, and a small processing fee will be deducted prior to passing that placement fee on to the Agency.

There are no mandatory or recurring membership dues to use RecruitiFi. Fees are only exchanged when a hire has been made.

Upon hire, RecruitiFi takes a small fee, which varies depending on the country where the hire was made and whether the agency making the hire was introduced to the employer by RecruitiFi. Please see this article for a breakdown of those fees.

At RecruitiFi, we’ve gone to great lengths to ensure that our fee is at the low end of the market and our services are at the top of the market. Other VMS solutions charge as much as double the fees that you'll see on RecruitiFi.

Please read on for some common questions about placement fees.

My old contract with my client states that I receive XX%, why is it YY%?

We often get inquiries stating that an agency's previous contract with a client is at a certain percentage.

We cannot verify what has been promised via phone, email, or contract by your client. What we can verify is that the fees are addressed clearly in the RecruitiFi terms. When agreed upon by both the Employer and Agency, the RecruitiFi terms become the governing agreement that supersedes any prior agreement between your parties for as long as you interact through the platform.

If an Employer has designated you with a certain fee, you will receive that fee minus the small RecruitiFi fee on every hire.

If there's a processing fee, why is my client using RecruitiFi in the first place?

When a company adopts RecruitiFi, it's a directive from the top levels of leadership—the CHRO, Head of TA, and CFO—to manage all agency interactions globally through the platform.

While it may seem that your interaction with the client is smooth, Employers often have hundreds of agencies globally. Your limited interactions with the Employer are just a small piece of the overall impact that agency management is having across the Employer's entire organization.

Employers approach RecruitiFi because they’ve hit a breaking point where handling their agency recruiting has become a difficult or impossible situation across multiple departments in their organization. They have difficulty tracking budgets, billing, collecting refunds from agencies all over the world, signing conflicting contracts not approved by legal with wildly varying ownership, guarantee, billing, and refund terms—or worse, making rogue hires where hiring managers engage with agencies without a contract approved by procurement.

Typically, when we’re speaking to companies, they’re at the point where they’re ready to scrap their agency relationships altogether and move to an RPO or expand their internal team.

Using RecruitiFi allows these companies to simplify, streamline, and organize their agency interactions, so that they can continue to work with agencies, and even expand their agency usage.

So, while we completely understand that the RecruitiFi fee is a pain point for your agency, we ask that you consider the big picture here. RecruitiFi is allowing a company to make more agency hires, meaning more overall fees for your agency, which is extremely attractive considering the alternative would be zero hires if the company moved to an RPO.

What if I choose not to work on the platform?

Telling your client that you refuse to work on RecruitiFi is a clear message to that client that their difficulties in handling agencies mean very little to your organization, and that you would rather fight them than understand the big picture.

Additionally, employers agree to maintain the exclusivity of their agency hiring to RecruitiFi, and they're eager to do so, because working with one-off agencies produces all of the problems mentioned above.

So, in addition to an internal mandate from HR leadership not to work outside the platform, there is also a contractual agreement preventing the Employer from working with your agency outside of the platform. Ultimately, if you would like to work with the Employer, you should join RecruitiFi.

Will RecruitiFi interfere with my relationship with the Employer?

Just the opposite! We want to make your relationship with the Employer even better.

Both the Employer and Agency are equally important for our marketplace to work.

RecruitiFi does not collect any money unless an agency hire is made. So, it’s literally the goal of our platform to make the process as easy for both sides to make as many hires as possible.

While every other solution on the market—from job boards to RPOs—is trying to stop agencies from making hires, we're trying to facilitate the process.

And if you have any suggestions on how to facilitate that process by improving communication or increasing transparency on the platform please get in touch with us here. We're always looking to improve your experience.

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