I have two primary offerings for companies seeking recruiting services
Most recruiters work on a contingency basis, where hiring companies only pay fees to the recruiter when a hire is made. Fees may range from 15-30% of starting salary. Contingency search has obvious advantages (low risk) and some disadvantages (loss of time, recruiter conflict) for the hiring company, but these searches are often a low priority for recruiters. In contingency search the recruiter assumes 100% of the risk, meaning the recruiter could invest substantial time and effort without receiving any compensation.
In retained search arrangements the recruiter receives the full fee immediately (or in installments), and that full fee is paid regardless of the search outcome. Retained searches are clearly in the recruiter’s best interest, and 100% of the risk is assumed by the hiring firm.
Fecak Inc. has introduced a hybrid model and implemented a flat fee structure which we call Engaged Search. I know of no other firm using this method with flat fees. Here's how it works:
- Clients pay a small engagement fee to initiate search activity, and this fee is invoiced and payable when the agreement is executed.
- Clients pay small flat placement fees for each new hire, invoiced on start date.
- At the time of any new hire, the client has the option to (A) pay the full placement fee for a hire (which continues our services) or (B) use the engagement fee as a deposit and pay the difference (placement fee less the engagement fee) to discontinue services.
Under this arrangement, both parties have great incentive to complete a search. Many of my clients using this model are serial hirers that always want to hear about best available talent, and want a recruiting firm that keeps their needs in mind regardless of whether they are actively hiring.
Because my clients are willing to reduce my risk by providing some small initial investment, I am able to offer much lower fees than other firms. Since 2012, fees have averaged out to 10-12% of base salary.
MOnthly OUtsourced Recruitment
For companies with limited internal resources looking to make multiple new hires quickly, my services can be made available on a monthly basis.
- Clients pay a small flat monthly fee for recruiting services.
- Clients pay small fixed placement fees for each new hire.
- Optional: Some clients choose additional paid advertising. We will evaluate advertising options, propose a strategy, and place ads on your behalf.
Services under this arrangement typically include:
- Development of recruitment strategy
- Job description creation and editing
- Advertising and ad placement recommendations (optional)
- Candidate sourcing, review of incoming applicants, initial candidate screening
- Interview scheduling and coordination
- Candidate debrief after each step in the process
- Offer presentation
- Salary negotiations and closing
- Reference checks
- Transition consulting (to minimize counteroffer or candidate loss)
A minimum one month commitment is required. Rate for the first month is slightly above the cost of renewal, as the first month requires additional set-up time.