Companies are not trying to minimize the cost of labour, they're trying to maximize the return they get on what they pay for labour. So they might decide to get someone for 150k rather than someone for 50k because they think they can get more than triple the value from the 150k guy.
A recruiter that has lots of 150k people on their books can signal that by charging 25% of a 150k salary rather than 25% of a 50k salary. Then people who want 150k people will hopefully come to them.
You can see this if you speak to different recruiters when hiring people, they charge different rates depending on what market segment they target.
A recruiter that has lots of 150k people on their books can signal that by charging 25% of a 150k salary rather than 25% of a 50k salary. Then people who want 150k people will hopefully come to them.
You can see this if you speak to different recruiters when hiring people, they charge different rates depending on what market segment they target.