Exceptional Service at a Value:
Placement fees are a thing. That is how recruitment firms stay afloat. But this is where I think our industry is a little top-heavy and the big agencies keep those rates up to pay for their operations.
Being small means we are not having to pay for a CEO, a secretary for 5 different departments, or for Harriet in accounts payable. We aren’t padding the margins to fund the new class of recruiters who started last week or the sales trainee who lasted a week and have to replace. We also don’t have to worry about: buildings and office spaces, security, copy machines, telephones, assistants, account executives and management. We don’t have to worry about satisfying shareholders by applying pressure on our clients to give us more while we do the same, or less work.
Industry Standard Direct Hire Placement Fee is 20-25%:
- That is a percentage of the first year salary
- This could even include fringe benefits and/or bonuses
- In-demand skillsets can drive it up to 30% or higher
A Blanket Fee Structure Is Not Good For Anyone
One thing is for certain; we understand that a higher salary doesn’t equate to a more difficult search most of the time, so why does the bill reflect that? With so many factors involved in talent acquisition, it would do a disservice to throw out any arbitrary number. However, In an effort to be transparent as possible, we do typically start at 15%.
Price Breaks May Include:
- Exclusivity
- Multi-Search
- Fee-Per-Action Model
- Placement Confidence
- Payment Terms
- Referrals
Let our commitment to value work for you by reaching out to us today!