At GSR2R, we know that when you’re building a relationship with a potential new client, it is vitally important to make sure they know the value of your fee. As a rec 2 rec company we are filling recruiter jobs for other agencies and it isn’t any different for us. We need to demonstrate our value. Remember the value of your fee should not be confused with ‘how much you cost’, because these are two very different things.
As an example, let’s say your fee is 20-30%. At first glance, that may seem like a lot to your client. Recruiters are often mistakenly undervalued – the danger being that your client thinks all they’re getting for their money is you filling a vacancy for them. Of course you’re actually doing much more than that, which is what makes your role as a recruitment ‘consultant’ so important, and therefore valuable.
Your client might think ‘I could go to a bog standard agency and pay 10%’ or even ‘I could post the job on social media myself and pay nothing!’ Both of those options would probably result in them finding ‘someone’ to fill their position. Whether that someone would be a good fit in the long run, is another question.
Let’s say the client takes the ‘DIY’ approach. They send out a tweet about their vacancy, shortlist a few CVs, conduct interviews and take on the best qualified candidate. A month down the line, said candidate turns out to be less capable than they had hoped, fails to pass their probationary period, and is denied a permanent position. The client then finds themselves back at square one, needing to spend time, money and effort on the recruiting process all over again.
Had they come to you to fill the same vacancy, they would have benefited from your professional expertise, your market knowledge and your experience in recruitment. You would have used all your experience and tools to tailor a well suited shortlist of candidates – all while the client was able to carry on running their business without distraction.
From your shortlisted candidates, the client would appoint a fully screened, amply competent and capable new employee. A month down the line, they are more likely to have been a fantastic fit and an obvious choice for a permanent position. Moreover, that candidate is likely to become a valuable employee who will help your client’s business grow and ultimately increase their profits by many times the ‘cost’ of your fee!
This is the point you need to make to your clients when it comes to fee negotiations. One of the most important recruiter tips we can offer is to know the value of your fee, and make sure your client knows it too. In understanding the value rather than just the cost, they will in turn see your value as an individual and keep coming back to you with all their future recruitment needs.
It is your job to make the client see that you know how to be a great recruiter. Make them understand that a candidate recruited by someone with a wealth of industry knowledge, for whom recruitment is a full time career and passion rather than just another task on a to do list, is far more likely to excel and help their business grow.
Make it clear that your fee is in fact a very valuable investment in their company’s future.
Till next time,
Cheryl Wing