
Drop your fees and triple your billings. Seriously
I wrote recently about my Post-COVID nirvana.
How the recruitment industry can be re-invented, with massive benefits for clients, candidates and recruiters.
My ‘dream’ includes killing off the scourge of contingent, multi listed-order recruitment, which drives much that is bad in our industry. Speed over price, short cuts, resume racing, fee-discounts, poor service to candidate and client – and recruiters spending 75% of their time on work they don’t get paid for!
I got a flood of support for my ‘dream’, but people were not sure how to do it.
You need to change your terms of business. You need to set up the process and the infrastructure. And you need to train your staff to sell exclusivity and deliver on it.
So I prepared this 10-minute video for you (Actually I made it for my good friends at Recruitment Juice, along with another 50 minutes of good gear, but I am posting it here for you, because I love you.)
Watch it, please.
Show it to all your recruiters.
Discuss and finesse my points, and build them into your process.
The video covers;
- The story of two recruiters. Exclusive vs contingent. And how it affects their lives.
- The commercial reality of filling 1 job out of 4 vs 9 jobs out of 10.
- How COVID gives us the chance to change our model.
- It’s not only money. It is self-esteem.
- It starts with the belief that exclusivity is the interests of the client.
- Why is it in the clients’ interests?
- Why it’s in the interest of the candidate.
- The underlying lie of contingent recruitment.
- Speed over quality. Effing madness!
- Transactional recruitment is dead. Consultative recruiting is back!
- Understand the value in the parts of your service.
- Take fewer jobs. Take better jobs!
- Commitment is the key!
How about dropping fees and increasing billings?
Follow my logic. Closely;
- You charge a fee of 20% for permanent placements. (Yay!)
- But you fill one job out of four. (Boo)
- Which actually means you are charging 5 % per job worked. (Boo! You ARE. Work it out)
- So your real fee is really 5% (Big fucking boo)
- How about you take every job exclusively. (Yay!)
- You drop your fee to 15% ( Hold that ‘Boo’ till you get to the end)
- You take fewer jobs (Boo. No wait, Yay! Because they are better, qualified and real jobs)
- You fill 9 jobs out of 10. (Massive Yay!)
- So your average fee is actually 13.5% (Yay!)
- 13.5% is better than 5% , right?
This is just an illustration to show you how dysfunctional our business model is.
Plug-in your own percentages.
Maybe do not drop your fee at all.
But maybe DO, for REAL exclusivity, perhaps even a small retainer.
Make my post-COVID dream come true.
And change your life, your self-esteem, and your bank balance.
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- Posted by Greg Savage
- On August 18, 2020
- 12 Comments
12 Comments