What is Fixed Fee Recruitment?
It won’t shock you to know Slice buck the trend in our industry by working on a Fixed Fee Recruitment model, but what does that actually mean and why does it matter to you as a hiring manager?
Your traditional recruitment agency will work on what is known as percentage terms, which means your fee will be a percentage of the candidates starting wage, however working on fixed fee terms, means you are charged a one-off fee for your service. This model is a lot more cost effective and means you know your costs upfront.
Fixed fee recruitment can save you money
With agency fees generally sitting between 15%-20% of the candidate’s first year salary you would be looking at a fee of around £3750 – £5000 for an entry level candidate, our fees start considerably less than that freeing up your cash for other areas of the business.
When we talk about the cost of recruitment, the cost per hire is one obvious element. But the cost to the business is much broader than this, with many factors making up the whole cost of recruitment.
Estimates for this cost can vary widely. The CIPD estimates the average cost of filling a vacancy, including labour costs, is £6,125. For a manager role, these figures rise to £19,000. So, if you can save in your cost per hire this is a bonus!
Fixed recruitment can save you time
Unless your sole purpose in the business is to recruit then finding the time to execute this process could well be time you just don’t have. Fixed fee recruitment helps you outsource the project, saving you time and safe in the knowledge that you don’t need to ramp up your activity just to pay your bill.
You will find with traditional agencies their sole purpose is find you the candidates, after that it is down to you to continue shortlisting, with fixed fee the whole project from advertising to offer can be completing outsourced.
Fixed fee recruitment reduces risk
Imagine paying out the £5000 we mentioned earlier only to find out that the candidate hasn’t worked out as you hoped. That’s a large investment financially as well as your time to just write off. Whilst fixed fee doesn’t always come with a rebate if your hire doesn’t work out or offer a like for like replacement, financially however you will have saved significantly. Fixed fee recruitment enables you to keep your costs low but still access the support you need to get it right.
With the traditional model if you decide to inflate the starting salary to secure that perfect candidate it will also mean that your fee will go up. Fixed fee recruitment means your fee is your fee regardless of the salary offered to your new employee.
Fixed fee recruitment means you are in control of the process from a financial point of view, no nasty shocks, no moving the goal posts.
If you would like to know more about how Slice Recruit can help you with your recruitment needs, please get in touch.