Some businesses try to go it alone and recruit themselves. The current economic downturn has put a lot of pressure on cost and efficiencies so businesses think that using an external recruiter is too expensive. But there are many different ways that an organisation can tap into the services of a professional recruitment agency while still keeping the costs to a minimum. Here are five of them…...
Make the relationship an exclusive one
If you are using a recruiter, then why not consider getting them engaged on an exclusive basis. There so many advantages to an exclusive arrangement with your recruitment agency but one of the big cost benefits is that most recruiters will agree to a discount in exchange for the certainty that comes from an exclusive relationship. Just because the relationship is exclusive, don’t assume the candidate catchment area won’t wide and far. There are many recruiters in the market that are also members of a group or network. These networks are able to confidentially shares their listings with likeminded similar boutique style recruiters which will give you an extremely broad reach without paying any more. This arrangement will also save time and money simply for you not having to deal with multiple recruiters.
Offer to pay something upfront
There are many occasions where the recruiter will offer a discount in return for an upfront “skin in the game” type commitment. This also has the effect of installing a kind of “pay-in-advance” arrangement which will also provide the recruiter certainty. This has a double effect of protecting them from clients who change their minds halfway through the process and thus provide little or no return for the work that has been completed, a further reason that some recruiters charge a higher fee for secured work.
Set fees in advance
Many recruitment fees are tied to salary or even a salary package, suggesting salary plus super being the most common trigger. Therefore, it is quite often that employers don’t know exactly what the total recruitment fee is that they are going to have to pay until the salary offer is made and accepted, the last par to f the process. There are even instances where less reputable recruiters may even talk up the salary to boost their final fee commission. Some recruiters may be willing to negotiate an “agreed salary” up front, on which the fee will be based – almost like an insuring your car on an “agreed” or “market value” basis. This kind of certainty can really help clients with budgeting and can also save thousands. For example, we recently had a candidate request a higher offer and to protect the client we agreed to lock our fee at the original offer, saving them over $2,000.
Pay by the hour
On certain recruitment assignments, some recruiters may offer an “a la carte” choice of recruitment options charged at an hourly rate (Wood Recruitment is one of them). For instance, some employers like to do their own reference checks or place ads under their own brand name, but it doesn’t make sense to carry through with the whole process. So they use a recruiter to do time intensive or low value parts like screening applications and notifying candidates of their application outcomes. These components of the recruitment process can be done at a cost effective hourly rate, saving employers both time and money.
Outsource the inefficient parts
Building on the concept of going “a la carte”, another effective cost-saving approach can be to outsource the sourcing element of the recruitment process. Recruitment firms, including Wood, have been able to mix and match the recruitment process or develop a “custom made” offer for individual employers. Wood are able to draft and place an employment advertisement on about 50 job boards, contact existing candidates from our extensive database, spread the word on social media and then send any appropriate resumes and applications to the employer. And, because we already have the job board subscriptions, applicant tracking software and experienced resources to do all of this, we can offer this service far cheaper than many employers could do it themselves in-house. So not only completing the task more efficiently but allowing the office management or human resources department to move onto what they do best.
Once that’s done, employers can pay for further upgrades – for example face-to-face interviews or reference checking and other evidence based recruitment checks. So don’t be put off using a recruiter because of the perceived expense – there are many ways to get value, use their expertise, tap into their connections and get the results you need in a cost effective way.