Why do recruitment agencies charge a percentage of annual salary rather than a fixed fee?
On paper, it might seem like we’re offering exactly the same recruitment service for an entirely different price.
We hear where you’re coming from, as the actual process is basically the same…
However, there are two key reasons why recruitment agencies base their fees on annual salary as opposed to a fixed recruitment fee.
The first is because of the volume of suitable candidates. The higher the salary, the smaller the talent pool. This means that agencies have to work harder to find the best candidates for your role and use more innovative tactics to grasp the attention of passive, senior candidates.
It’s very similar in this regard to the Estate Agency market. On face value, being instructed to sell a property worth £1,500,000 is awesome; the fee is of course going to be much bigger than a house worth £325,000. BUT as the value of the property goes up, the number of people who can afford it goes down, making it a smaller pool to fish in.
In a hierarchical job market the pyramid of talent decreases as the salary increases.
Secondly, it requires a different skill set to recruit senior level professionals. There’s a specific type of experience needed by recruiters to qualify and assess senior level candidates and engage them in a process. You’re essentially paying a premium for the recruiters’ expertise and ability to represent your brand credibly with prospective candidates.
About PEEQ HR Recruitment Agency
PEEQ is a specialist HR Recruitment Agency based in London. We partner with CEOs and business leaders to recruit high calibre HR professionals aligned to their purpose, who take ownership of employee wellbeing and enable our clients to achieve their business goals.
Why Choose PEEQ HR Recruitment Agency?
The average fill rate amongst HR Recruitment Agencies is 46%, but at PEEQ our average fill rate sits above 90%, So you are twice as likely to make a hire if you choose PEEQ.
This is due to two reasons: recruitment agency fees
Firstly, we only partner with our clients on an exclusive basis, so we ‘own the responsibility’
Secondly, we don’t employ recruiters. Instead, we work with trusted and proven freelance HR recruiters, to hire for our clients.
We give them the tools and infrastructure to be successful, and the rest is down to their magic and experience. Our Associates are not employed by us and only get paid for making a successful hire.
This makes them incredibly tenacious and committed to finding the best talent, which is why our fill rate sits above 90%, compared to the industry average of 46%.
More reasons to work with PEEQ
Psychometric insight reports
Obtain a unique insight into your candidates’ Cultural Fit, Strengths, Decision Making and Resilience through our accredited assessments.
Post-hire executive coaching
Set your hire up for success with a tailored coaching programme that helps them achieve their full potential personally and professionally.
Up to 6 month guarantee
Confidently select your preferred candidate with our ‘surety of hire’ 6 month rebate period. The ultimate comfort for a big decision.
BeTalent Accredited Approach
We are proud to offer the BeTalent Accredited approach that enables us to deliver scientific candidate assessment, in accordance with the British Psychological Society standards.
This solution is for you if you want:
- An objective way to determine who is the best fit for your role
- A comprehensive understanding into your new hire before they start
- Peace of mind that you’ve made the right hiring decision
recruitment agency fees
Get in Touch with PEEQ HR Recruitment
We are here to help you. If you have any questions, queries or would like to discuss a potential hire, a job application, or require clarification on anything detailed on our website, then we would love to hear from you.
Please feel free to call, email or complete the form provided and we will assist you.
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PEEQ HR Recruitment Agency
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