Consequently, recruitment companies must redirect towards specialists in less visible areas. The “no touch” clause is valid for a period equal at least to the recruiter’s contract with the client company. “Extreme cases in this sense are those in which a company signs a collaboration contract with recruitment companies for the sole purpose of preventing a headhunter from making offers to the company’s employees. It is a very simple and efficient method of self defense,” CVO Sales&Marketing Recruitment’s Business Manager, Alina Candea, told Business Standard.
This situation usually appears when there are very few players on the market. Some companies activating in the same field have non-aggression agreements regarding staff recruitment.
“This is a need springing from the monopoly interdiction and the “friendly competition” principle, which direct companies to arrive, at least informally, at some sort of truce,” the CVO representative added. Another disadvantage for recruitment companies is that of more and more erroneous studies on salary levels in certain industries. “Our clients use these studies, but when they come to us they realize that their financial offer is not equal to the position the company is aiming for. We try to orient our client to an amount we are comfortable with, following negotiations and consultations on salary,” explained Alina Candea.
Executive search companies are moving to adopt fixed fees, to avoid giving companies the wrong impression that salaries are overvalued merely because recruiters receive their payment in the form of a percentage of the future employee’s salary.
