Negotiate With Your Agencies
The purpose of our blog is to provide tips and tricks to improve the efficiency of recruitment in your organisation. The tools, tips and tricks that we share with you are taken from over 30 years in recruitment. We know our stuff and are prepared to share it with you.
Reduce your agency costs
Recruitment agencies are doing it tough. With a reported 3000 + agencies in Australia there have never been more recruitment companies in the Australian marketplace. As a comparison, there are apparently, 6000 recruitment companies in the US with a population of over 300,000,000. What was Australia’s population again? Oh thats right, 22,000,000. That makes our recruitment market around 10 times more competitive than the US!
Couple this with the number of In-House Recruitment functions that are established and you have a rapidly diminishing market.
Therefore, negotiation is now one of the first things you should be doing with your agency of choice. Why? Because you can!
The standard rates are fixed (at least that is what they will say to you) however I guarantee you, if you asked them to take 25% off, they will.
However, I strongly suggest you give something in return; a reason for them to say yes.
Here are some suggestions.
- Give them exclusivity for a period of time, e.g., 3 weeks. It costs you nothing and gives the recruiter a chance to tackle this role head on with no interruptions
- Pay 20% upfront. This takes you to the top of their pile of jobs as you have already paid a component. It also shows the recruiter that you are serious.
- Refer them to other parts of your organisation; obviously after they have finished the assignment and proven themselves. This once again costs nothing but is priceless from a recruiters perspective
Obviously, the other option on reducing costs is to establish your own in-house recruitment function which is easier than you can imagine. To find out how, simply call 02 8005 6299 or click here to visit our website and complete the form and we will call you.