Hiring great salespeople without recruitment agency fees

When it comes to expanding sales teams, smaller businesses often believe that there are only two options available: advertising on a couple of job boards, or hiring a recruitment agency to handle the burden of sifting through CVs and shortlisting suitable candidates.

With time spent on recruitment equating to time lost selling for the business, it’s unsurprising that many businesses hire recruitment agencies. Unfortunately, while recruitment agencies can take the strain of evaluating hundreds of candidates, businesses face a myriad of recruitment agency fees depending on the type of job role. So, what can be done?

Recruitment agency fees broken down

In the UK, employers are responsible for all recruiting fees and will be expected to pay for successful placement. The job role and type of employment will, of course, determine the cost. There are three types of recruitment fees: temp, temp-to-perm and permanent.

Temporary recruitment fees

Under a temporary recruitment fee model, the candidate is paid directly by the agency. The agency charges the employer, plus an additional fee, for basic hourly/daily pay, national insurance, holiday pay, sick pay, other associated costs, and a margin of profit. Temporary recruitment fees have no standard percentage and can fluctuate depending on job, location or sector.

Temp-to-perm fees

Temp-to-perm fees occur when an employer wishes to change an employee’s contract from temporary to permanent. As temp workers are technically employed by the agency, when a client wishes to take on that employee full time, the agency can charge a transfer fee to cover any ‘lost value’.

Permanent placement fees

The fees for permanent hires fall into one of two camps, contingency recruitment or retained recruitment. Contingency recruitment, the most common, is where an agency only gets paid once a candidate is accepted for the job. Typically, the fee charged in this process can range between 15%-20% of a candidate’s first annual salary, but can go as high as 30% for hard to fill positions, specialist roles or executive level jobs.

With retained recruitment on the other hand, businesses can stagger their payments for recruitment services, paying a percentage of the fee upfront, then another when the candidate shortlist is produced, and paying the balance when a candidate has been chosen. This process is still quite expensive and could cost around 30% of a candidate’s salary if successful.

While a recruitment agency might be worthwhile for the occasional vacancy, this may not be a realistic or affordable option for small, rapidly scaling businesses that are looking for talented sales representatives to help drive revenue, while keeping costs low. There is, however, a solution: fixed-fee recruitment and affordable headhunting packages.

Why is fixed fee recruitment the most beneficial option?

Unlike traditional recruitment methods and approaches, fixed fee recruitment is a cost-effective alternative that gives businesses access to traditional recruitment agency services, at a fraction of the usual cost. Job advertising, advert optimisation, candidate acquisition and search, candidate management/screening and shortlisting can all be provided for a single fixed fee, per job vacancy. Typically 90-95% cheaper than a traditional recruitment approach, fixed fee recruitment is an appealing approach to businesses with limited recruitment budget.

Also, some fixed free recruitment specialists, such as ecruit, provide headhunting packages for candidate acquisition. These specialists will operate in a number of channels, such as LinkedIn, to identify the most suitable applicants for a job role and present that role to them. The specialists would then provide the client with a list of people they have contacted, along with contact details. In many respects, fixed fee recruitment is an excellent alternative for businesses that need high-quality candidates quickly and for a reasonable price.

With traditional recruitment agencies charging anywhere between 10-30% of a candidate’s salary, businesses stand to spend hundreds or even thousands of pounds on a regular basis. Taking the time to consider fixed fee recruitment is certainly worthwhile.

At ecruit, we specialise in fixed fee recruitment and can save your business a considerable amount of money while providing you with the highest quality candidates.

Back to Blog

Other Posts

Why Job Seekers Aren’t Clicking Apply on Your Job Listings
Why Job Seekers Aren’t Clicking Apply on Your Job Listings

23rd October 2023

U.S. Recruitment Soars: A Golden Time to Hire
U.S. Recruitment Soars: A Golden Time to Hire

9th October 2023

The Role of Technology in Modern Recruitment: Trends and Innovations
The Role of Technology in Modern Recruitment: Trends and Innovations

21st August 2023

This website uses cookies to ensure you get the best experience. More info