It's no longer incumbent on just a fresh recruit to prove his worth in a new company. The headhunter who helped place him has an equal stake in his performance, or the lack of it. The job of a hiring agency now extends beyond the placement of a suitable candidate as companies wait to see how a new hire performs before they finally release the full payment to the placement firm. In a marked departure from existing norms, this is the kind of risk-sharing arrangement some executive placement firms are now entering into with companies. That's because the cost outgo on account of mis-hiring appears to be on the rise and, according to industry estimates, it can be anywhere between 26% and 100 % of the annual compensation package. Clearly, the accountability factor has risen when it comes to senior-level placements in organizations.
Read the Economic Times news report here.