We have mentioned Fixed Fee Recruitment in a previous blog, but it really does come into its own for multiple hires.
As a reminder – fixed fee recruitment means no nasty surprise invoices upon successful hire of a new employee! You have pre-agreed the cost of the recruitment project. It also removes the uncertainty of what your final bill may be as traditional percentage fees are based on the salary offered to the successful candidate. You may advertise a certain salary but that isn’t always what is negotiated at offer.
In Slice’s model you pay a project fee that covers everything from scoping out the job advert right the way through to interview support; this is fixed and agreed at the start. You then pay a fixed placement fee when your new starter begins employment. All the costs are the same regardless of role or salary.
So, fixed fee recruitment for multiple hires can be really cost effective in comparison to traditional recruitment where fees are typically a percentage of the hired candidate’s salary.
Let’s use hospitality as an example. A hotel is wanting to recruit three new part time receptionists. The job advert is the same and the scope of the role. So only one job advert is required and one process required to shortlist the applications, so you only need one project fee.
Using Slice’s model you would then pay a fixed placement fee per employee you hired.
If you put some numbers to this you can see the difference.
1 x project fee – £999+VAT
3 x placement fee – £945+VAT
Total on fixed price = £1944+VAT for all 3 candidates.
Traditional recruitment agencies can charge 15-25% of the starting salary, so using our example on a minimum wage part time receptionist role (£9523.80 per annum), the 15% fee would be £1428.57 each! If you need 3 staff this would be £4285.71 (we’ll do the maths for you).
There are also other efficiencies to be had for using a fixed fee recruiter for multiple hires. One job advert means one stream of enquiries that your recruiter needs to handle; streamlining the process. This is one of the reasons that fixed fee recruiters can keep the costs down.
When you consider the overall cost to hire, making savings at this early stage is going to really benefit you.
So if you have more than one of the same job role to recruit for, fixed fee is going to be the most efficient option for you. If the numbers you see above look enticing then please get in touch and we would be happy to scope out your next recruitment project.