Are recruitment agency prices accessible?
Recruiting for a vacant position in a company can be a time consuming exercise, especially if you do not have a fully-fledged HR department. But the cost of keeping a position vacant is high. Recruitment agencies are a way that so many businesses look to save time to help with filling that vacancy. However, that time saving does not always come cheap. In fact, are recruitment agency prices even accessible, let alone affordable?
Here, we look to answer that question by approaching recruitment agency fees and prices in terms of their affordability as well as accessibility. Accessibility is the sum of affordability in addition to what an agency offers per pound. So, while some recruitment agencies may charge broadly the same, one agency may be accessibly priced, while the other may offer a package that is totally inaccessible to a company’s means.
How to calculate a recruitment agency’s prices:
The accessibility of a recruitment agency’s prices really does boil down to a number of other factors. Those factors mean that even when an agency’s final price looks expensive, it actually will work out far more accessible to a business in the long run. It is for that reason that a business should never decide on a recruitment agency on price alone. It is necessary first to weigh up what they are offering – and how, to see whether the final cost is a possibility for a company or not.
Of course, one of the main ways that two agencies with the same final cost will differ from one another is the value that they provide their client. Value comes from a number of different areas, but a high level of competency and effectiveness throughout is required for a recruitment agency to have accessible prices. Being effective comes from knowing how to be as productive as possible in the shortest amount of time.
A vital way that a recruitment agency will have a fee structure that is accessible to a firm is due to the time that it saves in the recruitment process. If no significant time is saved in comparison to if recruitment was taken in house, then the fee structure of an agency increases significantly too. A significant saving of time will result in money-saving in the grand scheme of things. That saving will be derived from hiring a firm that has streamlined processes and highly skilled employees.
If an agency’s quote is far higher than a competitor’s, it can be tempting to dismiss them straight away as having an inaccessible fee. However, it can be prudent to investigate further why they do charge so much. Some, may not have the goods to back it up with – in fact, there’s a high chance of that. However, others may have so much experience in what you are asking of them, that their high fee suddenly looks good value. So if an agency does have a great deal of experience in what you are recruiting for, it actually could be money saving over a period of time hiring them instead of someone cheaper.
– Vacancy level
Recruitment agency fees and structures vary from company to company, sector to sector – but, importantly, according to the level of the vacancy. For that reason, if a company has a high-level vacancy to fill, an agency’s prices will be correspondingly higher. The agency will have to do more deep level research into finding suitable candidates who have a specific skill set and experienced CV. In short, the higher fee structure is a reflection of the amount of work involved from the agency’s point of view. Or it should be anyway. It is vital to question, therefore, before signing a contract with an agency if the level you are filling is reflected in their prices.
Of course, being able to justify a big bill from a recruitment agency due to all the gains that a company makes using them is all well and good. Sadly, however, a company still needs to be able to afford any agency’s final price. While over the long term using that agency may save money, a company needs to be able to meet its costs and pay its invoices on time in the short term too.
For that reason, unfortunately, if an agency’s price is too high for a company, they will remain inaccessible to firms that are yet able to meet those costs. That’s not to say that the recruitment agency will not be open to negotiation. The agency may see that in time, working with a company may be finally advantageous to them due to a long-running relationship. Or, it could be they offer a lower cost option that still provides the company with a recruitment solution suitable for their needs.
Recruitment agency prices – key takeaways
Recruitment agency fees can be high, but that does not automatically mean that they are not worth paying either. In fact, agencies that have a wealth of experience in recruiting in a company’s sector can be worth their weight in gold by taking the hassle out of the recruitment process. Agencies like this are worth keeping an eye out for as well as when they have clear and efficient in house processes. Agencies that use effective techniques, time saving software and display good teamwork, will be the ones to keep an out for when sifting through quotes.
Keep in mind the above factors and, then, allocate how much you value each of those factors too. Your priorities can have a huge bearing on what you finally conclude is an accessible price and what isn’t. Finally, work closely with agencies that you admire to see where close business relationships can be forged. That too can save you money in terms of better fee structures but also much improved communication.