We look into why so many small to mediums sized businesses are adopting fixed cost recruitment vs the traditional (contingency) model?
Traditionally you would be stuck choosing between recruitment agencies charging between 10% – 25% (and sometimes even higher), whilst you may negotiate a lower rate you were always left wondering if that affected the service levels and candidates shared with you.
Paying on average £4,500 per vacancy, many considered managing the process internally.
Whilst some traditional [contingency] recruitment agencies did provide a valuable service, typically in senior and niche areas, you could argue that with the right tools and processes the recruitment process could be managed effectively in-house…
Fixed Price Recruitment – cheaper than traditional recruitment
A fixed priced agency typically charges between £650 – £1,500. Do not be fooled by agencies who simply offer advertising only. This is simply job posting which many businesses could do themselves.
As the market has changed, placing job adverts directly on careers websites has become much easier. The trick is to work out the best job boards for your business and individual roles. The next big question is do you have the time to manage this process effectively? If not then consider a Managed Service
If you need extra support, but would rather avoid high recruitment agency fees, you may wish to opt for a managed service. If so, you are likely to pay from around £650. This service should include telephone screening, booking interview calls/video calls, booking applicants in for your face to face interviews, providing feedback and even offer management support.
A model to suit your business needs
With multiple commercial options available, you can pick the perfect recruitment support model for your business, per hire!
It’s no surprise that businesses are adopting fixed cost recruitment to save up to 95% on their recruitment spend.
Rather than managing the recruitment completely by themselves, the external support of creating and launching the job advert, and filtering the CVs. This means they can focus more time and energy on the latter stages of the recruitment process such as the face to face interviewing and offer management.