Deciding which model is best when it comes to recruiting sales representatives can really depend on your company’s specific needs and priorities. If you want to hire a large number of employees, or you need to have more control over your costs, then flat-fee recruitment could be a good option. If you are looking for a more personal approach and you are willing to pay a little more, then traditional recruitment may suit you better. In order to choose the best option for you it is important to understand exactly what each method involves, along with their pros and cons.
Understanding Traditional Fee Recruitment
Traditional fee recruitment typically involves paying a recruitment agency a percentage of the candidate’s first-year salary for successfully placing the candidate in their role. This fee usually ranges from 10% to 30% for permanent positions, or a percentage of the hourly rate or a flat-fee for temporary roles. This fee will cover the agency’s services such as sourcing candidates, screening resumes, performing assessments and interviews and negotiating the offer with the candidate. Once a candidate is successfully placed, the employer will pay the fee, so if an agency doesn’t find a suitable candidate that is hired, the employer won’t pay anything.
Pros & Cons Of Traditional Recruitment
Traditional recruitment has its advantages, and these can include a faster hiring of candidates as agencies often have established networks and processes that allow for the faster identification and selection of suitable candidates. As the recruiters have the potential to increase their earnings with the percentage of the candidate’s salary there is greater incentive for them to find and place the most successful and most suitably qualified candidate for the job, so motivation can be high in finding and choosing the right person. This method of recruitment is widely used and understood in the industry and it is a commonly accepted way to find employees.
The down-side for the employers is that this method can be costly, especially if you’ve hired a top-performing representative, or are offering a high-salary position, because you will be paying a percentage of that salary to the agency. Some employers also feel they have less direct control over the recruitment process, which can also take more time than they might prefer.
Understanding Flat-Fee Recruitment
Paying a flat-fee to a recruitment agency means you pay a fixed price upfront for the service they provide, and there are no extra costs based on the number of hires or the salary of any successful candidates chosen. The cost to the employer is fixed regardless of the final outcome. Employers typically have more control over the hiring process and decisions with flat-fee recruitment.
Pros & Cons Of Flat-Fee Recruitment
The biggest advantage of flat-fee recruitment is the money that is saved by the employer. Because you pay a fixed fee you get predictability and budget transparency, and these flat fees are often significantly lower than the fees charged by traditional recruiters. The process involved with flat-fee recruitment is generally quicker and more streamlined, and by using online platforms, networks and a wide range of job sites, the recruiters are able to access a larger pool of candidates. This means they are often equipped to handle recruitment across various sectors and industries, and because this service attracts applications quickly, they generally have a quick turnaround, meaning they can be invaluable when urgent job vacancies arise.
A potential disadvantage in choosing flat-fee recruitment is that because there is a fixed fee paid, there is less incentive for the provider to search for the best candidates for the job. As long as the position is filled the fee will be paid, so there may be less emphasis on high-quality screening. Flat-fee recruiting does not always provide as much of a personal service and in-depth candidate assessment as traditional recruitment agencies, so you may end up with quantity over quality.
The Best Practices Used When Recruiting And Selecting Successful Candidates
In order to attract the right person for the job you need to create a clear and outlined job description, stating the responsibilities, skills and experience required to fill the role, and it always helps to emphasize what the role will achieve, not just the tasks involved. The wider selection of recruitment channels you advertise on, the more likely you are to reach your ideal candidates, so make use of online channels and job boards, social media platforms and industry-specific events.
Next you need to establish and implement a structured selection process that is standardized and consistent, to ensure that you are fair and non-bias with your candidates, otherwise you risk selecting a candidate based on bias. You can incorporate various assessments such as skill tests, personality assessments and on-the-spot judgement tests to evaluate each person’s suitability to the role.
By implementing practices like anonymous applications you can help promote diversity and inclusion in your organization, which in turn leads to a better hiring outcome and a stronger workforce.
Why Not Recruit Candidates Myself?
If you own a small business, recruiting employees yourself may seem like a great money-saver, but really, do you have the time and the energy? Unless you can dedicate a lot of time and effort into advertising, sifting through applications, reading CVs, selecting potential candidates and interviewing, then you will be better off letting an agency handle the process. Flat-fee agencies like HyperHired are experts in the entire recruitment process; we have a huge database of potential employees to cover most sectors, and we can get you the best employees fast.
You have better things to do with your time – like running your business, so let us find your next team member. We can handle all aspects of the recruitment process for you. You pay a flat-rate price, and we provide ongoing client support throughout the hiring process, ensuring you get a smooth and efficient recruitment experience.
