This came through just yesterday whie I was talking to Senior Vice President of large listed public company. Ofcourse I used Steven Levitt's freakonomical model to build the relationship clear.
The way almost all recruitment firms operate commercially is that they make money when an employee is successfully placed in an organization. For each such hiring, firm makes a cool 10 - 20% of the annual salary of the employee. That the employee is "the right guy" doesn't play any role in determining the payout. Ofcourse there are clauses & terms that do no good......here are a few freakonomical pointers to how things really are:
1. Larger the attrition in the account, larger the potential business for the firm.
2. If the firm places people who stay forever, it is killing its own market.
3. If successful placement is the key, dressing up candidate seems business need.
4. Best guy comes your way if your commercial term is relatively superior to other contracts.
5. Superstar will to the highest bidder, not to him but to the firm.
We can agree or we can find out........long live Levitt...
