Fixed Price Recruiters vs Contingency Recruiters
Recruitment fees are fees that businesses pay recruitment companies to find and recruit new employees. This article will identify two of the most common ways recruitment companies charge for their services.
Fixed Price Recruitment Fees
Recruitment companies who offer a Fixed Price Recruitment service take a substantially smaller fee upfront in comparison to Contingency Recruiters.
Some of the benefits of using recruitment companies who offer a Fixed Price Recruitment service are:
Complete transparency. There are no hidden fees or surprises, the price you see is the price you pay.
Multiple hires from one fee. If you choose to hire several candidates from one campaign, you will not be charged a penny more, meaning the more candidates you hire, the cheaper it is. Contingency Recruiters would charge you a fee for each placement which can quickly add up when making multiple hires.
Save time on screening applicants. Let the professionals screen the pool of potential candidates using pre agreed requirements set by the hiring manager, leaving you more time to focus on running your business.
Increasing trend of companies opting for Fixed Price Services. Fixed Price Recruitment companies like Crooton have seen an increase in recruitment activities being allocated to them from their existing clients. It is not just fixed price recruitment companies who are benefiting from this increase in preference for using fixed price services. Purple Bricks have disrupted the estate agent industry by offering a fixed price fee for their services instead of the traditional percentage-based fees, and as a result have seen their company grow substantially.
Contingency Based Fees
Contingency Recruiters charge a percentage of the candidate’s salary as a fee once the position has been filled. Usually, this fee will be in the region of 15% to 20% of the candidates starting salary, so companies hiring candidates starting on £25,000 would usually expect to pay between £3750 to £5000.
Although contingency recruitment fees seem like a straightforward solution to recruiting, one should consider the disadvantages:
Quantity over quality. With this method of recruitment, quantity often exceeds quality, so you can expect to receive tons of poorly screened, sometimes irrelevant applications. Fixed Price recruiters like Crooton work their socks off during the screening process to ensure they deliver a pool of highly suited candidates.
More expensive way of recruiting. Contingency recruitment fees can be very expensive, especially when making multiple hires for the same role, i.e. Teaching Assistants, Support Workers or Lorry Drivers.
If you want to get your company on the right track, you need to hire individuals who can get the job done. Fixed Fee recruiting helps your business from the inside out and helps your company put its best foot forward on its journey to success.
Contact one of our friendly, dedicated account managers today to find out how we can help you get the right person, for the right price!