Recruiter Training: Things To Consider When Deciding Your Fee

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Copyright (c) 2012 Kimberly Schenk

Half way through a search assignment discussion it's time to talk about the fee. Assuming you're talking with the decision maker who has the authority to approve your fee there should be enough information at this stage to set the fee. The client has done 90% of the talking up until this point and provided the search parameters.

While the client's talking Recruiters are listening closely and taking notes. The beauty of working as a Recruiter lies in our ability to design how we choose to work. There are multiple ways to set a fee. Find what works best for you by experimenting. Don't charge a fee you would not pay.

Many recruiters adhere to setting their fee based on the traditional practice of a percentage of a candidate's first years' salary, say 25%. In a competitive market the 'one size fits all' mentality is limiting. After considering a number of factors and if you want to take on the client, present a fee.

A flexible mindset usually works in your favor. It's most important to make placements consistently. Your dependability and performance will keep clients loyal. If a client has ten searches you may want to offer a package rate and a flat fee per hire. The value should match the project.

First, don't work on searches you don't want or won't be able to fill. Recruiters don't need guilt. It's better to back away from a search than accept a search you don't feel is worthwhile. Not respecting a companies' philosophy or the way they treat employees are reason enough to respectfully tell a prospect you're not a good match.

If a company believes constant turnover is cost effective, that's a red flag. If they don't treat employees well or pay below market rates, respectfully explain your search methods typically surface candidates with long-term goals. Advise them your services would not be an efficient use of their resources.

When recruiters take a complete search assignment it saves time. Many of the companies I've chosen not to do business with are exceptionally successful in terms of profit. I don't care. It's not in my best interest to compromise my integrity when I can earn substantial fees with companies I love helping to succeed.

Considerations that enter into a fee decision: What's the company turnover rate? What's the atmosphere like? Are employees excited about coming to work? Is the employer fair minded? Do they promote from within? Do they offer additional training? Is their compensation program competitive? Are they open to employee input? And high on a recruiter's list, will they work in a cooperative and respectful way with their recruiter?

Can the client make a hiring decision quickly? The longer their decision making process the more likely deals will fail. Work with decision makers. Bureaucracies slow down the placement process, so beware. When you've determined you want the search set your fee.

As an Executive Recruiter it's important to offer value. Be picky about the searches you accept or you won't want to work on them. Delight clients by presenting exceptional candidates. Some recruiters want clients to use them exclusively. If you believe in your ability don't worry about other recruiters. Serve your client by finding the best candidate quickly. Your client will turn away other recruiters.

Put your agreement in writing. Keep it simple. Present your fee as due within ten days of a candidate's start date in order for the guarantee to kick in. The guarantee for replacement should be defined; 60 - 120 days is sufficient; clarify the exact number of days. If an employer wants it to be longer, that's a small matter not worth losing a search over, in my opinion.

Don't under value your time and energy. Decide a fee and don't be quick to lower your fee if a client wants to negotiate. Talk about the value of hiring a candidate that contributes above and beyond what they expect. They won't be willing to hire a candidate with 20% fewer competencies. Clients' don't want an 80% effort either. They want a great candidate, and exceptional service.

Know the fee ranges in your industry. Know what constitutes different levels of expertise. Know what motivates you to deliver the candidate your client desperately wants. Set your fee based on the value your client places on hiring the right person.

Your questions, demeanor, and thought process demonstrate your ability. If the client doesn't want to pay your fee, wish them well and move on. Managers have budgets that may not include expenditures for recruiting. Accept no for an answer. Many managers are happy to pay fees and value what recruiters provide. Knock yourself out to set up an interview within 72 hours. Deliver value by providing exceptional candidates. Makes placements happen and your fee will never be an issue.

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