Across the majority of businesses that employ people, staffing costs will be the largest overhead on their P&L however it is also true to say that it is the talent of the individuals within that drives a company to perform.
The success of your company truly does boil down to how your team delivers on your promise to your customers so surely getting the very best people is absolutely non-negotiable.
There are generally 3 popular approaches to recruitment agency charges;
- Fixed monetary fees, percentage of annual salary (ranging from roughly 10-25% depending on the supplier)
- Retainers which historically went hand in hand with “head hunters” but has become more commonplace within specialist recruitment.
- Outsourced recruitment team approach (RPO) which is on a bespoke basis.
- It is a bit “pot luck” and unregulated but the real question is not of cost, but what value should you be getting?
Let’s start with what goes on behind the scenes with a good recruiter in order to find suitable candidates for their clients from start to finish so we can start to justify the fees involved.
The first piece of the recruitment agency puzzle is to win the hiring clients in the first place so a huge part of our role is business development which in itself takes investment.
When we are given a brief we have an in depth consultation with a client (normally in a face to face meeting where possible) but failing that a comprehensive call /zoom which goes through the needs of the client in full, including finding out about culture and what makes the company tick.
Once we are fully aware of what is required the next step is to start to bring together suitable candidates and this is done through another number of approaches.
We write a specific job advertisement for the role and we will then access multiple advertising platforms, including our own growing social media channels to place these to ensure that we spread the net as wide as possible. We have our own database of candidates that has been cultivated over many years and continuously cleansed which we will search based on the criteria given.
In recent times, pre-Covid, we were experiencing challenges with labour shortages so we have also had to invest heavily in resources whereby we seek out passive candidates who are not necessarily looking for a role but would be of interest to our clients.
Once we have candidates who are showing interest, we go through an in depth, two stage interview process with those individuals to ensure that they meet the brief for our client before we even discuss the role or the client.
We put each candidate through a robust process before presenting a suitable shortlist to our clients. At which point, we will arrange interviews, confirm them all in writing, hold the hand of the candidate and obtain and provide feedback at every stage. This provides reassurance to both parties and helps to keep the process running as smoothly as possible.
There is nothing more frustrating than putting aside time in your diary for an interview, only for someone not to turn up and our process ensures that this does not happen to our clients.
Once the client has decided upon their chosen candidate, we will liaise and negotiate on their behalf to gain an acceptance – pure joy!
As before, we will check in regularly with both parties throughout to ensure that any queries are resolved and things go to plan until the happy day that they come together on the person’s first day!
What does our involvement provide;
- Gives clients access to the widest net of available candidates for their roles
- Provides up to date recruitment market knowledge to all clients who may or may not recruit regularly
- Gives advice and support on employer brand, job descriptions, specifications, interviewing techniques
- In a candidate abundant market we sift through hundreds of CV’s to ensure only the most suitable sit in front of a busy client in interview – saving time and money
- In a tough candidate market we find people that would have remained out of reach
- Provides support and a safety net against things getting lost in translation and people being let down through irregular communication
- Gives some financial protection for the cost of hire not working out through a rebate