How does Flat Fee Recruitment work you ask? Well, what happens is that a company will charge a flat fee for any position being hired in your organization. Whether you are looking for a labourer or a management member the pricing can be the same. Most companies will have a guestimated turnaround time for their recruitment efforts and as long as there are no significant changes to the position during that time, they are meant to deliver a candidate at the end of that period. Where this gets complicated is for some more complicated positions with a known longer recruitment period (i.e. CEO’s, CFO’s etc.), the average recruitment timeline of 6 – 8 weeks may be longer, so some recruitment agencies will do either an increase flat-fee amount or a monthly engagement might be more worthwhile, both options still cheaper than a Contingency based fee. If this hasn’t brought you to our side of preference, here are our top 5 reasons why we love flat-fee recruitment:
1. Motivation for the recruitment team to work quicker (vs. hourly).
The quicker they can find you a great candidate, the faster they can free up their time for new clients.
2. Incentive to find the right hire and send better candidates in (vs. the contingency volume game).
Since the goal is to find the perfect person in an efficient manner, the recruiter will be diligent in isolating the great candidates versus the mediocre ones that contingency based recruiters may send you to just finish up the project.
3. It’s cheaper than contingency.
We mentioned the percentage of salary earlier, that can be a huge expense for your company, especially if you are on the smaller side.
4. You can budget/plan for the expense.
Speaking of cost efficiency, since it’s just the one fee, you don’t have to worry about finding room in your budget if the position is taking a while to fill. No surprise costs!
5. Feels more like working with an extension of your team.
You get to pass on the burden of stress in finding a candidate to someone who loves to find the perfect person for a role. This person, if done right, should feel like an extra team member. They should learn about the company and the team to help find who will be the best fit.