The big question as always is how much does this all cost?
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 a number of agencies work on a position and the one that successfully fills it, is the one that is able to 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 model does not allow this to happen and so in our view is no longer fit for purpose.
We endeavour to work exclusively with all of our clients, meaning we benefit from a significantly higher fill rate than average. We also work flexibly, using technology to reduce our operating costs, meaning we are able to pass on these savings to our clients in the form of a highly competitive fee arrangement.
With this in mind, if a recruiting client engages with us exclusively for a period of 14 days then our fee for recruitment services will be reduced from a standard 20% contingency fee to 10% of the annualised salary.
You can register your vacancy here and we will happily arrange a time to discuss this further with you.