There is no secret that recruitment fees are often seen as excessive, however this is usually a result of the way that agencies choose to sell and recruiting companies choose to buy their third-party recruitment services. Most assignments are agreed on a contingency, multi-agency agreement.
This means that several agencies work on a position and the one that successfully fills it, is the one that can invoice for the service. In theory, you would think that this competition is a good thing. In reality, it is a race to the bottom, with quality quickly out of the window and KPIs such as speed of CV send winning the day.
It is not that anyone sets out to do a bad job, it is just a case that in these situations there is not the time to write quality advert copy, create a long list, carry out thorough assessment and therefore present a quality and relevant shortlist of candidates. Agencies working on this basis, will report a fill rate of c 1 in every 4/5 vacancies, with every successful placement in effect compensating for the assignments where no revenue was produced.
If, however a recruitment business was to fill every position that they worked on, then it makes sense that their fee could be significantly lower than the standard terms we see in the market today. The traditional contingency, multi agency model does not allow this to happen and so in our view is no longer fit for purpose.
We realised that if we work exclusively with our clients, we would benefit from significantly higher fill rates than average. When combining this with our ability to work flexibly, using technology to reduce our operating costs, we understood that we would be much better off working with fewer clients but in a much more mutually beneficial arrangement.
In short, we get exclusivity allowing us to do our job properly and increase our fill rates. We work with clients that want to work with us and in return our clients get a very competitive fee arrangement and importantly the full attention of a highly-experienced recruiter.
It’s the classic Win Win!
RAD Business Support invoice 10% + VAT of the annualised salary for all successful recruitment assignments. We ask for 14 days exclusivity to allow us the time to compile a quality shortlist and also offer a competitive replacement policy. This has worked well for us on a number of assignments with success recruiting across the range of commercial functions, and at all levels, including roles such as Financial Controller, Product Manager, Sales Executive, Marketing Assistant, Customer Service and Administration Assistants as well as a number of Graduate roles.
You can register your vacancy here or give us a call on 01603 919019 and we will happily discuss this further with you.