I know, it’s odd that a Recruiter is writing about how they saved a company money in recruiting fees, because as you know, recruiting fees are up there. Typically, recruiting fees run anywhere between 25% to 30% of a candidates first year salary, sometimes even higher with retained search firms working on C-Level positions.
Today, I’m happy to be sharing how I saved a company over $19,000 in recruiting fees.
The Situation: A small financial investments firm was looking to hire a CPA with some background in financial investments. This person will play a crucial role in the company as they only have 1 CPA right now, who in the next few years will be retiring. The position was posted on LinkedIn, which didn’t have the outcome they were hoping for. After trying to utilize some other resources to attract the talent they were looking for without any luck, they realized they needed to get more creative with their hiring process.
Solution #1: Since the company was not ready to go the “recruiter” route, they hired me to conduct a virtual training session with some of their team, training them on my recruiting techniques using LinkedIn, that they could use to aggressively search for this key person.
Result: They were extremely pleased with the training and learned things about LinkedIn they never knew existed. They seemed hopeful that they could search and find this person on their own. As a small business, they all had their own jobs to do, and realized they just didn’t have the time to do the recruiting and screening on their own.
Solution #2: Knowing this is a small company and that they don’t have the budget to pay a typical recruiting fee, I offered my freelance recruiting model to them. The company will receive the same high quality recruiting process I offer my fee paying clients, except on an hourly/flat rate basis.
Result: After weeks of cold calling into competitors, researching CPA’s with financial investment background, and making 5 to 7 touch points to individuals in order to get responses and conversations going, someone was identified, interviewed and hired.
The Savings? This individual was hired at a base of $110,000, my typical recruiting fee would be 25% of that, which is $27,500. Our Consultant & Advisory Service saved them over $19,000 in recruiting fees; and they hired a high quality individual, who wasn’t actively job searching and wasn’t on a job board.
Why do I agree to work on an hourly/flat rate basis making less money you ask? First, I got paid for the work I was doing. When working with clients on a fee basis and only get paid if they hire one of my candidates, I’m working for free and sometimes never get paid for the work I do. Second, there are many small companies and start-ups that need help with recruiting and don’t have it in their budget to pay a high fee. I love helping companies identify talent, as well as helping people find their next career. If that means making $19,000 less than what I could have made, then so be it. Third, when working with a client utilizing the Consulting & Advisory Service, I’m able to build a great working relationship with some of the team members.
Whether I’m working with the Owner, CEO or Human Resources Management, there’s a mutual commitment on both ends and open communication during the entire process. I become a true extension of the company.