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| Fixed Term Contract Fees |
| Author: | Mooresby |
| Date: | Monday, 9th Jun 2008 15:30 |
| Views: | 646 (excluding Digests and RSS feeds) |
| Category: | Fees and Terms of Business | | URL: | http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=101079 |
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Recruiters - I run my own recruitment training business, Mooresby and a large proportion of my clients work in the IT recruitment arena.
One client practice which seems to have become more prevelant over the last couple of years is to hire on a fixed term contract.
To the un-initiated, this is where a client will pay the equivilant of a permanent salary, but only need someone for say 6 months.
This is all well and good, flexible workforce and all that, but what i'm seeing more and more is the client only being willing to pay a proportion of the agents fee and even more worrying, agents accepting this!!
So, where recruiters would get for example a £7K fee for placing a permenant role, they would only make £3,500 for a 6 month fixed term contract.
If you encounter a fixed term assignment, I would urge you to ensure that your client knows that the bill will not be reduced just because the need is for example only for 6 months.
If a client does expect your bill to be halved (or quartered for a 3 month assignment) then it is our duty to educate the clients that:
1. Our advertising costs remain the same regardless of fixed term
2. The number of people we must speak to remains the same
3. The effort we put in remains the same
4. Our salesmanship has to increase as fixed term is not generally as attractive as permanent
If we don't make a stand about this now, then don't be suprised if clients come looking to squeeze your margins time after time after time!
www.mooresby.com |
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| Re: Fixed Term Contract Fees |
| Author: | CREC |
| Date: | Monday, 9th Jun 2008 18:08 |
| Views: | 99 (excluding Digests and RSS feeds) |
| Category: | Fees and Terms of Business | | URL: | http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=101079 |
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Bizarre suggestion,
The candidate will be free for you to place into another role in 6 months. The employer only gets 6 months worth of service from the candidate rather than the years of service a perm candidate potentially provides. Do you not think a client will ask what value is he getting for his money? He doesn't care about how much work you put into sourcing the candidate, that is reflected in the %level of fee you charge. |
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| Re: Fixed Term Contract Fees |
| Author: | Jacko |
| Date: | Tuesday, 10th Jun 2008 13:36 |
| Views: | 99 (excluding Digests and RSS feeds) |
| Category: | Fees and Terms of Business | | URL: | http://web.ukrecruiter.co.uk/forum/Forum/read.php?i=101079 |
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Not so bizarre as many areas of generalist areas of ICT recruitment are Client driven so having the candidate free to place elsewhere in 6mths isn't necessarily the boon it might be if you were operating in a solely candidate driven market place.
That being said for niche, hard to fill roles the type of candidate the client is hoping to attract will usually not touch fixed term with a barge pole as it offers few advantages so, most will be contracting the rest looking for Perm, so if you have a strong candidate who is willing to consider the role on this basis then you are in a strong position to negotiate terms.
Fixed term contracts have been pushed heavily by the public sector for several years now and whilst many do expect agency bills to be pro rata'd to meet the length of service negotiation comes as standard as with any other placement.
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