As an Ottawa based search and recruiting firm we’ve noticed that the recruiting market is changing constantly and with the advent of social media, sites like Linkedin, Google+, Facebook etc., recruiters and search firms have to adjust their services and the associated fees. Many firms are now offering a fixed fee recruiting services. In fact, we recommend this model to several of our clients. It all gets down to value for your HR dollar. Your company wants to recruit the best possible candidate for the best possible salary and fee. Whether filling individual or multiple roles, fixed fee recruitment is often the most cost-effective and easily managed recruitment approach.
What is Fixed Fee Recruiting? As the name suggests, it is providing recruiting services at a pre-arranged fixed price. What does this mean for our employers?
- Fixed fees ensure that you stay within your established budget – no surprises.
- Since the fee is pre-determined it ensures that your recruiting firm has your best interests in mind. They’ll present you with the top candidate for the role, not necessarily the one that provides the search firm with the largest commission.
- This type of budgetary control is alleviates some of the budgetary constraints of start-ups and large companies alike. You can more accurately forecast the cost or turnover, expansion and other employment costs.
- Prioritizes their recruitment activities. Most recruiters will focus the most attention on searches that provide the largest pay-day. Let’s suppose your recruiter is working on a fee of 20% and has two roles to fill, the first pays 50K per annum and the second pays 100K per annum. Where do you think he/she will focus their energies?
- It’s a long-term solution recruiting solution. Coupled with the budgetary benefits, fixed fee recruiting provides you the opportunity to work more closely with your recruiting firm of choice. You can now share more details of your workforce plan and work with your recruiter to fill the candidate pipeline well in advance of your hiring needs.
The next time you’re reviewing the fee structure with your recruiter ask them if they are open to fixed fees. It could benefit you both.