Recruiting Agency Fees: Finding a Balance between Value and Cost

Comments Off on Recruiting Agency Fees: Finding a Balance between Value and CostWritten on June 6th, 2011 by
Categories: Corporate Recruiters, Human Resources
RecruitAlliance facilitates successful relationships with recruiting agencies.Your organization has utilized contingency recruiters for years. As budgets tighten, and more talent acquisition software/technologies flood the marketplace, you look for alternatives to high agency fees.

In truth, technology can never replace the human interaction that takes place to "recruit" a new hire. Certainly things like job boards, social media and innovative talent software help HR in their internal recruitment efforts. When human resources can't find and hire that high-caliber candidate to complete your team--headhunting agencies come to the rescue.

Tips to Maximize Value when working with Recruiting Agencies:

1. You get what you pay for. The agency has a top-notch candidate who fits the profile of your next executive. You are only willing to pay 15% of the first year's annual salary. Your competitor will not flinch at a 30% fee, because they know the candidate and the bottom-line impact he will make on their organization. Remember, you can't buy a Cadillac for the price of a Ford Fiesta.

2. Flat fees can surface "flat" candidates. For example, you have an opening for a mid-level professional who earns $55,000.00 per year. Your company sends the opening to their agency partners, at a flat fee of $5000.00. It is likely your agencies will not refer candidates, because you're asking them to reduce their average fee (20%) by more than 50%. In order to set-up a winning relationship with agency recruiters, you must compete with other employers.

3. Partner with RecruitAlliance to manage relationships more effectively. RecruitAlliance enables you to set the fee you're willing to pay, and manages your agency and candidate relationships at no cost. Employers who utilize third-party recruiters can post their most urgent positions, set the terms and conditions, and automate the entire process.

There is no doubt that software, job boards and social media can never replace the human interaction necessary to recruit top-talent.


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