No doubt you’ve probably seen or at least heard about the new flat fee estate agency approach that’s emerging. Well the recruitment market isn’t far behind. Recruitment comes in many shapes, sizes and different price points. Most people are aware of traditional recruitment agencies and the percentage fees that they charge. This can be an expensive option, especially if you’re a small business but surely the higher cost means they provide a better quality and quantity of candidates, right?
Well not always and with the tightening of recruitment budgets, you have to ask yourself as a business owner is the fee worth it?
One alternative to this traditional approach is the Flat Fee or Fixed Fee recruitment option, which in most cases offers the same service as a traditional agency and sometimes even has a stronger calibre of candidates.
What is Fixed Fee Recruitment?
Well simply it’s when a price is agreed upfront for a recruitment campaign. There are no hidden costs or catches, even if you hire more than one candidate.
How does it work?
You send us the job description, which we turn into a compelling advert, fit for the top UK job boards, that will attract the most suitable job seekers. The advert is then placed on the relevant job boards for 30 days. We sort through the applications for you, carry out initial telephone interviews and send you a shortlist of relevant candidates, within days of your advert going live.
You then conduct the interviews and select the best candidate(s), filling your vacancy fast!
But what are some of the difference, or misconceptions around this form of recruitment:
- Candidates – One of the main things we hear is that recruitment agencies have a better candidate pool of talent or reach and so automatically attract the most suitable job seekers. This is NOT always true. In most cases an agency will use the same options a Fixed Fee or Flat Fee recruiter – job boards and social media to attract and find the best candidates.
- Screening – A large draw for businesses using recruitment companies is it saves time, as the agency manages the process for them. However agencies aren’t the only ones who manage vacancies and screen candidates. Most fixed fee recruiters do too. This includes advertising, telephone interviews and offer/rejection communication (if you want it), meaning you still get the benefits of using an external recruitment strategy, while still saving time and money.
- Cost – Depending on your recruitment requirements, using fixed fee recruitment could save you thousands on your HR costs. For example, if you take an average agency fee of 15% and you hire 10 new employees a year, with an average wage of £25,000, it would cost £37,500 to fill the positions. On average, a fixed fee recruiter charges between £500 – £1000 per campaign, meaning the same 10 roles could see you save over £27,000!
Of course not all Fixed Fee or recruitment agencies charge the same price or percentage but don’t let the term ‘Flat or Fixed fee’ put you off; these companies still offer a great all round service at a fraction of the cost.
At GoldHR we believe the recruitment market needs to change. In a traditional world, we offer an affordable, disruptive solution to solve the challenges faced by progressive growing businesses.
We’ll help you to find the right staff for your business. We work hard to understand each individual business and their unique recruitment needs to make sure you get the best person for the job.