Executive recruitment can get costly. We have the solution.
Hiring and keeping strong talent is a top priority for all astute business leaders and owners. A history of disappointing hiring decisions, the burden of extended vacancies, and simply a lack of time leads many employers to outsource executive recruitment to agencies who have the skill, experience, and aptitude to get the job done on their behalf. Yet standard executive recruitment pricing models present a challenging dynamic for traditional agencies and their clients.
Consider this: the average fee for executive recruitment services is 20% to 25% of the new hire’s first year gross salary, paid on contingency - meaning, the agency does not collect anything unless/until the position is filled. If multiple agencies have been commissioned by the client to fill the same role, it becomes a race against the clock to submit the highest possible volume of candidates quicker than any other agency. The inevitable result is that quality suffers. For example, to be first, it is common practice for some agencies to assign multiple lower level agents to the same project, who may not understand the client’s business or their needs. And when a holistic approach is not taken, there is a greater probability that the wrong candidate may be placed. We’ve seen churn/turnover figures as high as 80%. That’s costly.
We can do the math to see the problem: an executive hired at $125,000 per year, for example, earns the recruiting agency $25,000 to $31,250. That’s a fair investment for a strong hire, but a risky investment if the wrong candidate was placed just to close the deal and earn the commission.
Here’s our solution.
A De Novo HRConsulting Project Manager (PM) is assigned to each project to not just oversee the project, but also perform every step within our holistic approach, including the following:
Visiting your offices, touring your facility, and meeting the members of your existing staff who the new hire will be managing, collaborating with, and reporting to.
Performing a job analysis and writing the job description.
Begin recruitment, screening, and interviewing efforts.
Conducting all first interviews in our offices to minimize disruption to your workplace, then guiding you and your interview panel through the second and possibly third round of interviews.
Performing reference checks and conducting pre-employment testing.
After a candidate has been selected, extending a written contingent offer of at-will employment together with all relevant documents (such as an NDA).
Once the position has been accepted, performing a background check and drug screening.
Continuing to provide advisory services as their first day approaches, including an on boarding and orientation guideline to get you well past those very important first 45 days, all the way through the twelve month mark.
In exchange for this holistic approach that we believe best services our clients, we charge our standard hourly rate, managing the project in an ethical, professional, and efficient manner that results in the best candidate experience plus the strongest possible placement.
If you want to compare apples to apples, using the same example as above, our average placement timetable would result in a fee comparable to a 12% commission on an executive placed at the same $125,000 annual salary.
The value for service provided is undeniably high - we don’t work for 50% or 55% or 65% completion rates. We work toward 100% placement rates, 100% candidate satisfaction, and 100% client satisfaction.