Fixed Fee Recruitment Changes The Recruitment Industry
Traditionally, when an employer needs to fill a vacancy, there may be several routes that he or she would take. They can include outsourcing the process by contracting the services of a recruitment agency, or in previous cases, the employers would advertise the vacancy via newspapers or classified advertisements, or word-of-mouth to receive several candidates and applications, many of which may be unsuitable. The next step involves screening candidates for the interview process, in order to determine the ones that would be deemed to be most suitable. The process turns out to be time-consuming and labor intensive, time-consuming and not very cost-effective. The recent innovation known as fixed fee recruitment attempts to solve some of the problems while lowering associated costs involved with hiring new employees.
The fixed fee recruitment package will normally include all of the components of a recruitment process that will range from creating the advertising message and publishing it in appropriate places. Recruiters will also assume responsibility for collecting and screening all applicants and arranging interviews for suitable candidates.
Usually recruiters will be commissioned on fees based on the annual compensation of the employee. However change was needed as employees became much more mobile and were forced to change jobs much more often. The cost of hiring new employees has kept increasing as employers sought ways to keep costs under control and the concept of fixed fee recruitment was introduced.
For a single flat fee, any position can be filled, regardless of job level, location or compensation. This now offers tremendous advantages to the employer, and especially to the small business owner who may have several tasks that may be essential to the operation of the business. There is a now much less costly inconvenience, as resources are directed to maintaining essential operational activities.
Although hiring employees is essential to the operation of any business, many business owners will indicate that there other tasks that often take much higher priority, and fixed fee recruitment allows them to control costs while they tend to matters that appear to be more urgent.
Knowing replacement costs in advance offers much more flexibility, and allows business owners to better plan and execute parts of the process or operations. There is no fee for placing employees, and the costs involved may be as much as 70% less than the traditional recruitment process. For the hiring manger, the only inconveniences with which she is then left, is deciding which candidate is most suitable for the vacancy as the short list of screen applicants can be delivered to an email.
It is not uncommon for employees to be hired without a personal interview, as employees rely more on the judgement and expertise of the agencies. The process may even be short circuited by a telephone interview or a conference call that involves several different parties, because in business time is money.
Employers can save money on filling vacancies by using only agencies that offer fixed fee recruitment. With fixed fee recruitment, employers can better plan their operations, as they have a firmer concept of what it will cost to replace employees. For more information you can click here.