What is 'No Cure No Pay' Recruitment Agency?
No cure no pay recruitment agencies are agencies that do not charge a fee for their services unless they are successful in filling a vacancy. This means that the company only pays if the recruitment agency provides a candidate that they actually hire. This compensation usually consists of a percentage of the new employee's annual salary. This is paid to the agency by the new employer.
There are some advantages to working with a no cure no pay recruitment agency. Firstly, this offers the company the certainty that it only has to pay if a suitable candidate has been found. This can help limit the costs of the recruitment process.
In addition, working with a no cure no pay recruitment agency can give the agency extra motivation to properly supervise the recruitment process and communicate well with the client, because it has an interest in supplying suitable candidates. Otherwise they won't get paid.
Disadvantages of no cure no pay recruitment agencies
However, there are also disadvantages to working with no cure no pay recruitment agencies. Because the agency only gets paid if someone is hired, they often prepare the candidate very well for the job interview . This can cause you as a client to get the wrong impression of the applicant. Suppose the applicant is normally quite lax, but thanks to the work of the recruitment agency, is well prepared for a change, then this is not clearly visible to the client.
In the case of no cure no pay, the recruitment agency is actually always on the candidate's side, and that is not always advantageous as a client.
In addition, many No cure no pay recruitment agencies often work very aggressively. A candidate is placed at several companies and whoever bites first is lucky. Especially in times of a tight labor market, you have less time to properly screen a candidate.
The compensation you pay is often a percentage of the new employee's annual salary. This can be quite expensive. It is often even cheaper to simply pay a recruiter per hour than afterwards on a no cure no pay basis.
All in all, working with a no cure no pay recruitment agency can be a good option for companies that are looking for specific candidates and want to limit the risk in terms of costs of the recruitment process. However, it is important to understand how the agency works and what services they offer before making a decision to work together.