Fees
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Hi Dem,
While interviewing a candidate for a position he informed me he had interviewed at my client about 2 years ago; both were interested, but couldn't agree on the salary. He is still very interested in this opportunity. How should I present him to my client? Should I inform my client of their past encounter with him, if so how do I ensure I will get my fee?
While interviewing a candidate for a position he informed me he had interviewed at my client about 2 years ago; both were interested, but couldn't agree on the salary. He is still very interested in this opportunity. How should I present him to my client? Should I inform my client of their past encounter with him, if so how do I ensure I will get my fee?
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Hi Dem,
I am fairly new to candidate marketing. I have been having my best candidates make lists of the companies that they are interested in working for. A troublesome situation keeps presenting itself. Twice already, the companies have responded back to me enthusiastically when they hear what a great candidate I have. But when it comes down to the fee agreement, they put me off; they don't want to commit to working with me or paying a fee. Then I feel guilty, because I think, if my candidate had submitted his CV on his own he may have had a chance at this opportunity? What can I do about this? What do I tell my candidate?
I am fairly new to candidate marketing. I have been having my best candidates make lists of the companies that they are interested in working for. A troublesome situation keeps presenting itself. Twice already, the companies have responded back to me enthusiastically when they hear what a great candidate I have. But when it comes down to the fee agreement, they put me off; they don't want to commit to working with me or paying a fee. Then I feel guilty, because I think, if my candidate had submitted his CV on his own he may have had a chance at this opportunity? What can I do about this? What do I tell my candidate?
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Hi Dem,
I wish I had clients like this all the time. In the first 4 months of this year we will invoice one of our best clients R600K. We have given them a slight discount in previous years when they asked for a discount. Our fee with them is 17.5%.
My question is, should we be proactive and offer a discount before they ask us for one? Our hope is that this would strengthen our relationship further. We are currently working on two more high level positions for their company.
I wish I had clients like this all the time. In the first 4 months of this year we will invoice one of our best clients R600K. We have given them a slight discount in previous years when they asked for a discount. Our fee with them is 17.5%.
My question is, should we be proactive and offer a discount before they ask us for one? Our hope is that this would strengthen our relationship further. We are currently working on two more high level positions for their company.
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Hi Dem,
My client is about to hire a replacement candidate from me at a higher salary than the candidate who left. Should I try and collect the fee difference between the original and the replacement?
The original candidate was hired in February. The client paid about R60 000.00 within 10 days. The candidate was fired around day 55. The client takes part of the blame for making a bad hiring decision. So we gave them a credit towards the next placement. Our replacement candidate is about to get an offer and the fee would be R75 000.00. Am I entitled to push for the additional R15 000.00? If so, how do I word it to the client? The client has been very cooperative and we can probably make 2 or 3 more placements there. It’s a good company to work for. They would also be an excellent client to ask for a testimonial in the spirit of, ‘the recruiter kept her word and replaced...’ What do you think?
My client is about to hire a replacement candidate from me at a higher salary than the candidate who left. Should I try and collect the fee difference between the original and the replacement?
The original candidate was hired in February. The client paid about R60 000.00 within 10 days. The candidate was fired around day 55. The client takes part of the blame for making a bad hiring decision. So we gave them a credit towards the next placement. Our replacement candidate is about to get an offer and the fee would be R75 000.00. Am I entitled to push for the additional R15 000.00? If so, how do I word it to the client? The client has been very cooperative and we can probably make 2 or 3 more placements there. It’s a good company to work for. They would also be an excellent client to ask for a testimonial in the spirit of, ‘the recruiter kept her word and replaced...’ What do you think?
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Hi Dem,
I attended your last Webinar on fees and everything you said made sense to me.
Right after your Webinar I got a phone call from an HR director who had 8 job orders for me and was willing to give me an exclusive for them. I responded with a fee agreement that included a sliding scale model of 2 placements at 20%, 2 at 17.5%, etc. I received a phone call from their procurement manager who wanted a lower fee, discount for early payment, 90 day guarantee) and told me I was competing with other agencies. I said I would do all placements for a 17.5% fee and a 90 day guarantee. Two days later the HR director called me back & said the difference in fee was too great and they were going with someone else. I didn't try to change his mind, but I did say that the 15% fee they got in the end was only a good deal if the placements were made successfully and retained. He agreed and said it wasn't his decision. What else could I have done?
I attended your last Webinar on fees and everything you said made sense to me.
Right after your Webinar I got a phone call from an HR director who had 8 job orders for me and was willing to give me an exclusive for them. I responded with a fee agreement that included a sliding scale model of 2 placements at 20%, 2 at 17.5%, etc. I received a phone call from their procurement manager who wanted a lower fee, discount for early payment, 90 day guarantee) and told me I was competing with other agencies. I said I would do all placements for a 17.5% fee and a 90 day guarantee. Two days later the HR director called me back & said the difference in fee was too great and they were going with someone else. I didn't try to change his mind, but I did say that the 15% fee they got in the end was only a good deal if the placements were made successfully and retained. He agreed and said it wasn't his decision. What else could I have done?
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Hi Dem,
I have been working with a client, and we have placed a couple of candidates in the past two months.
Most recently, I marketed a top software engineer into their company. The CEO interviewed the candidate and decided they wanted to present an offer to him. Before extending the offer, he wanted to re-negotiate our fee (asked for a 5% decrease) due to the fact that we had been successful in placing several people, and they were giving us "good business". I was put in a place of an ultimatum, which was either I sacrifice my fee or sacrifice an offer going out to the candidate.
Unfortunately, this is not the first time I have had a client attempt to renegotiate a fee when it comes down to the final stage of drawing up an offer. Do you have any advice on how to handling this situation effectively?
I have been working with a client, and we have placed a couple of candidates in the past two months.
Most recently, I marketed a top software engineer into their company. The CEO interviewed the candidate and decided they wanted to present an offer to him. Before extending the offer, he wanted to re-negotiate our fee (asked for a 5% decrease) due to the fact that we had been successful in placing several people, and they were giving us "good business". I was put in a place of an ultimatum, which was either I sacrifice my fee or sacrifice an offer going out to the candidate.
Unfortunately, this is not the first time I have had a client attempt to renegotiate a fee when it comes down to the final stage of drawing up an offer. Do you have any advice on how to handling this situation effectively?
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Hey Dem,
I have been working with a client, and we have been successful with placing several candidates within their organization in the past two months.
Most recently, I marketed a top candidate into their company. The CEO interviewed the candidate and decided they wanted to present an offer to him. Before extending the offer, he wanted to re-negotiate our fee (asked for a 5% decrease) due to the fact that we had been successful in placing several people, and they were giving us "good business". I was put in a place of an ultimatum, which was either I sacrifice my fee or sacrifice an offer going out to the candidate.
Unfortunately, this is not the first time I have had a client attempt to renegotiate a fee when it comes down to the final stage of drawing up an offer. Do you have any advice on how to handle this situation effectively?
I have been working with a client, and we have been successful with placing several candidates within their organization in the past two months.
Most recently, I marketed a top candidate into their company. The CEO interviewed the candidate and decided they wanted to present an offer to him. Before extending the offer, he wanted to re-negotiate our fee (asked for a 5% decrease) due to the fact that we had been successful in placing several people, and they were giving us "good business". I was put in a place of an ultimatum, which was either I sacrifice my fee or sacrifice an offer going out to the candidate.
Unfortunately, this is not the first time I have had a client attempt to renegotiate a fee when it comes down to the final stage of drawing up an offer. Do you have any advice on how to handle this situation effectively?
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Hi Dem,
What are the risks (legal and ethical), to a company choosing to do its own direct, target headhunting, i.e. doing what we do, calling into competitors, other companies? I have a prospect who just told me that they would rather do themselves what we would charge them to do.
What are the risks (legal and ethical), to a company choosing to do its own direct, target headhunting, i.e. doing what we do, calling into competitors, other companies? I have a prospect who just told me that they would rather do themselves what we would charge them to do.
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Hi Dem,
I saw the following email today:
Dear HR/Recruitment Manager,
With the current economic situation we have encountered many work seekers and companies who urgently need the other but do not have the time or money for an appropriate match.
We would like to offer our assistance to you as valued client (or potential client) in proposing a lower recruitment rate.
If you have used agencies before you will know that the current placement rates vary between 13 and 20%. Our normal rate is 13%, but we would like to offer you a rate of:
6% on all placements until end of the year.
We are generalists, and have over 10 000 candidates on our database.
Should you be interested in using our service to get suitable staff, please contact us on the details below.
At first I was incensed that someone would devalue our profession in such a drastic way. I fight for 20% fees every day. What value does a recruiter offering 6% fees really bring to the table? Why on earth would they offer a fee so low? In my opinion recruiters offering "promotional pricing" muddy the waters that we fight so hard to keep pristine.
I want to call this agency and tell them there is a better life for them, selling something that can be discounted, like photo copying machines.
So, my question for you is “Why?” But, I think at this point it's more rhetorical in nature.
I saw the following email today:
Dear HR/Recruitment Manager,
With the current economic situation we have encountered many work seekers and companies who urgently need the other but do not have the time or money for an appropriate match.
We would like to offer our assistance to you as valued client (or potential client) in proposing a lower recruitment rate.
If you have used agencies before you will know that the current placement rates vary between 13 and 20%. Our normal rate is 13%, but we would like to offer you a rate of:
6% on all placements until end of the year.
We are generalists, and have over 10 000 candidates on our database.
Should you be interested in using our service to get suitable staff, please contact us on the details below.
At first I was incensed that someone would devalue our profession in such a drastic way. I fight for 20% fees every day. What value does a recruiter offering 6% fees really bring to the table? Why on earth would they offer a fee so low? In my opinion recruiters offering "promotional pricing" muddy the waters that we fight so hard to keep pristine.
I want to call this agency and tell them there is a better life for them, selling something that can be discounted, like photo copying machines.
So, my question for you is “Why?” But, I think at this point it's more rhetorical in nature.
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Dear Dem,
Six months ago I was asked to recruit for a Sales Director for a large office supply company. I was paid a retainer and successfully completed the search earning a very substantial fee.
The company then asked me to help them find 11 Business Development Managers all across South Africa. They sent me a contract with a 15% contingency fee. There is no exclusivity. So far they have hired 5 candidates all of which were mine. The average fee is R60 500.00.
I am now hearing from a couple of their HR recruiters that there is some discussion at management about the cost of placement fees.
I’m looking for the" best answer" or starting point to give when the issue formally comes up. These positions are not easy to fill and take a lot of time. The volume is there, but it also takes me away from other potential clients. I have been recruiting for 13 years and I have never had a big client that has represented a large % of my income. As an aside I have been told there are potentially 30 other positions next quarter.
Six months ago I was asked to recruit for a Sales Director for a large office supply company. I was paid a retainer and successfully completed the search earning a very substantial fee.
The company then asked me to help them find 11 Business Development Managers all across South Africa. They sent me a contract with a 15% contingency fee. There is no exclusivity. So far they have hired 5 candidates all of which were mine. The average fee is R60 500.00.
I am now hearing from a couple of their HR recruiters that there is some discussion at management about the cost of placement fees.
I’m looking for the" best answer" or starting point to give when the issue formally comes up. These positions are not easy to fill and take a lot of time. The volume is there, but it also takes me away from other potential clients. I have been recruiting for 13 years and I have never had a big client that has represented a large % of my income. As an aside I have been told there are potentially 30 other positions next quarter.
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Hi Dem,
I have a client (12 placements with him in his prior company) who is with a new company where he is restricted to pay 12% fees (he used to pay 20% at his old company and can’t get it changed in his new company). He wants to use us, but I have been refusing due to the rate. Otherwise this would be a good client and job orders that are right in the middle of our niche.
I have a new recruiter needing job orders. Should I consider it or not? Should I give these 12% searches to the rookie as a tooth-cutting exercise or should I practice what we preach and make him keep searching for better jobs?
I have a client (12 placements with him in his prior company) who is with a new company where he is restricted to pay 12% fees (he used to pay 20% at his old company and can’t get it changed in his new company). He wants to use us, but I have been refusing due to the rate. Otherwise this would be a good client and job orders that are right in the middle of our niche.
I have a new recruiter needing job orders. Should I consider it or not? Should I give these 12% searches to the rookie as a tooth-cutting exercise or should I practice what we preach and make him keep searching for better jobs?
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Hi Dem,
I had a really interesting visit with a client yesterday. They are an international company with business interests in [SA City]. The company essentially deals in the Energy market. One of their Divisions is an outsourcing service that they provide to their clients on an international level.
They currently have a Call Centre based in [CITY] that services international companies with Surveys, Telemarketing and so on. Next Friday, they will be launching another phase of their business (cost effective business processes) where they will offer an admin service to clients like overflow data capturing and so on, on an international level.
They are looking to partner with one agency in [OUR REGION] that would provide them with quick and easy access to staff. They anticipate around 5 to 6 people a month depending on their contracts and would need people like data capturers that will earn salaries of up to R4 500 per month.
The company wants me to give them a quote around a sole agency basis. And I thought we could quote them on a progress basis, for example:
First position 15%.
2nd, 3rd, 4th, 5th, positions 12.5%.
Everything after that 10%.
I don't know if it would make sense to do it this way.
How would you quote? I mentioned to the client that I would start at 15%, which is our standard fee. He thought that was still quite high for the amount of business we could potentially get from them.
How would you quote?
I had a really interesting visit with a client yesterday. They are an international company with business interests in [SA City]. The company essentially deals in the Energy market. One of their Divisions is an outsourcing service that they provide to their clients on an international level.
They currently have a Call Centre based in [CITY] that services international companies with Surveys, Telemarketing and so on. Next Friday, they will be launching another phase of their business (cost effective business processes) where they will offer an admin service to clients like overflow data capturing and so on, on an international level.
They are looking to partner with one agency in [OUR REGION] that would provide them with quick and easy access to staff. They anticipate around 5 to 6 people a month depending on their contracts and would need people like data capturers that will earn salaries of up to R4 500 per month.
The company wants me to give them a quote around a sole agency basis. And I thought we could quote them on a progress basis, for example:
First position 15%.
2nd, 3rd, 4th, 5th, positions 12.5%.
Everything after that 10%.
I don't know if it would make sense to do it this way.
How would you quote? I mentioned to the client that I would start at 15%, which is our standard fee. He thought that was still quite high for the amount of business we could potentially get from them.
How would you quote?
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Hi Dem,
Please see below what I received from a potential client. I sent him my engineering brochure and he responded with what he is looking for. I sent my fees and explained to him what I do and that this position would entail headhunting as I am looking for a PR Eng with design who is born in SA so it is not an easy task and I don’t have anyone at the moment that fits what he wants so it will be a lot of search.
I really am struggling to compete with people charging those fees, I normally charge 15% - 18% for the engineers which I think is hell of a cheap already as the work that goes into finding the civil guys is a lot and many hold shares in companies and don’t want to move. Do I respond or walk away? He is looking for a potential director with 8-10 yrs design exp and he wants to pay such a little?
Please see below what I received from a potential client. I sent him my engineering brochure and he responded with what he is looking for. I sent my fees and explained to him what I do and that this position would entail headhunting as I am looking for a PR Eng with design who is born in SA so it is not an easy task and I don’t have anyone at the moment that fits what he wants so it will be a lot of search.
I really am struggling to compete with people charging those fees, I normally charge 15% - 18% for the engineers which I think is hell of a cheap already as the work that goes into finding the civil guys is a lot and many hold shares in companies and don’t want to move. Do I respond or walk away? He is looking for a potential director with 8-10 yrs design exp and he wants to pay such a little?
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Hi Dem,
Do we still need SIGNED Fee Agreements before we commit to working a Job Order?
Do we still need SIGNED Fee Agreements before we commit to working a Job Order?
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Dear Dem,
My client is going to make an offer to my candidate at R360K which is what my candidate said he would accept when they met. I have talked with the candidate and I think he will actually feel a little remorse if he accepts an offer at R360K (although I know he'll still take it). When he answered the question about salary he hadn't done any research. In the meantime he has and he thinks it's a little low. I've told my client this and he says he will offer R370K if I take a 1% cut in my fee. The difference in fees for me is I miss out on about R3700. For a happy client, candidate and to get the deal done I don't mind doing it. But I wondered what you thought about it?
My client is going to make an offer to my candidate at R360K which is what my candidate said he would accept when they met. I have talked with the candidate and I think he will actually feel a little remorse if he accepts an offer at R360K (although I know he'll still take it). When he answered the question about salary he hadn't done any research. In the meantime he has and he thinks it's a little low. I've told my client this and he says he will offer R370K if I take a 1% cut in my fee. The difference in fees for me is I miss out on about R3700. For a happy client, candidate and to get the deal done I don't mind doing it. But I wondered what you thought about it?
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Hey Dem,
I know your feeling about discounting Fees, but in a tough market do you still stand firm? I suppose my question is, how much has the current market forced you to reduce your Fees?
I know your feeling about discounting Fees, but in a tough market do you still stand firm? I suppose my question is, how much has the current market forced you to reduce your Fees?
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Hi Dem,
Here we go - I recently recruited for a client of mine and during the process, an ex-contract employee of the client responded to my advertisement. He was now unemployed and I interviewed him, and as he was a very strong match, referred him to the client for an interview.
He went through the entire interview process, and the end result was that he was appointed by the client and commenced there at the beginning of this month, at which time I invoiced them.
NOW I have been advised that the client is not prepared to pay the fee as the candidate was an ex-employee of theirs!
I have considered the way in which I am going to approach this but would sincerely appreciate some input from you as well as it would help me tremendously when it comes to couching my response to them.
Could you please let me know how YOU would approach your client in this situation?
Here we go - I recently recruited for a client of mine and during the process, an ex-contract employee of the client responded to my advertisement. He was now unemployed and I interviewed him, and as he was a very strong match, referred him to the client for an interview.
He went through the entire interview process, and the end result was that he was appointed by the client and commenced there at the beginning of this month, at which time I invoiced them.
NOW I have been advised that the client is not prepared to pay the fee as the candidate was an ex-employee of theirs!
I have considered the way in which I am going to approach this but would sincerely appreciate some input from you as well as it would help me tremendously when it comes to couching my response to them.
Could you please let me know how YOU would approach your client in this situation?
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Is it unprofessional/legal to tell a candidate that they will not be receiving an offer based on the reference check?
Our candidate went on 3 interviews and the client then asked her for references. She gave our client three names. The client said she checked them and wanted to make an offer. I told the candidate that they wanted to make an offer. The client and I start discussing start date, etc. In the meantime, the candidate sent over a fourth reference to the client separately. This reference apparently did not give the candidate a raving review. Therefore, they will not be moving forward with an offer based on a bad reference. What do we do now?
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