From this thread:
http://forums.pelicanparts.com/off-topic-discussions/649744-offering-bounty-head-hunter.html
Quote:
Recruiters generally are paid a fee that is proportional to the salary of the candidate. 1-2 month salary aren't uncommon. The companies certainly do not take this fee out of the salary of the new employee. Salary ranges are pretty well defined usually, and a new candidate will not start for something that isn't at least average for the position and experience.
One thing that recruiters usually are hired for is for finding highly specialized people that are often not searching for a job at all and are sometimes employed by a competitor. A small or mid-size company does usually not have the resources in HR to go on such a search and it would also be considered unethical to cold call someone at the competition directly.
Reputable recruiters often have a long term relationship with the company that hires them and they look for repeat business. They will not bring someone to the company that the do not believe is an excellent match. This may explain why they would not want to take money from both sides. They definitely do work for the employers.
I personally would only work with a headhunter if they call me with a specific job they are trying to fill. If you just give them your resume, you better make sure they only present it to companies and for openings you agree to previously. If the recruiter spams every company out there with your resume, it may hurt your chance to hire on. Generally, for a year after the resume is received, the company will have to pay the recruiter's fee. This may discourage them from hiring you, especially if you are in a lower paid position that is easily filled with other candidates that did not come in through a recruiter.
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Other related threads I commented on - same message ...
http://forums.pelicanparts.com/off-topic-discussions/451556-job-recruiters-totally-worthless-worth-shot.html
http://forums.pelicanparts.com/off-topic-discussions/584982-i-forget-executive-recruiters-also-sales-people.html
Hope this helps. Good luck on your job search!
G