Client Got a Fee in Their Bonnet About Agency Prices

Client Got a Fee in Their Bonnet About Agency Prices Okay. Time to talk about something in agency recruitment which can cause all sorts of problems for newbie consultants, and even seasoned ones: the percentage fee. Most recruitment companies work to a set percentage fee based on the basic yearly salary of the candidate; this tends to be somewhere around the 20% mark. Now, clients begrudge paying recruitment companies anything as in their eyes all we do is trawl job boards and bung across any old CV that might fit the bill. So, when the newbie is having a good old chat with a potential new client and the topic of  fees comes up, the conversation quickly goes south (unless the newbie knows how to combat incredulous wails and downright hostility). What do the cries sound like?     What?? 20%????  The recruitment company I usually deal with does all placements at 8% if you want to work with me you’ll have to drop your rates. A newbie consultant might not know how to combat this given they are, you guessed it, new. So how can they (and you) deal with this constant pushback about prices and terms? 1. Acknowledge the  clients concern Consultants  neednt get nervous or worried when they  get pushback from clients about prices and percentages. The first step to mitigating friction over this is to acknowledge the clients issue or concern, perhaps by repeating it back to them, empathising with them by saying, at a first glance the price might seem high. The  next step involves making a great case to support the expense. 2. Explain  why, clearly and concisely This involved explaining the process you  go through to find your clients the perfect Widget Noodler, for that manned site in Samlesbury Bottoms. You  know, the one the other recruitment company couldn’t fill for the last 6 months? The explanation should go a little something like this Firstly, Fred, I will find you 3 candidates who fit the specification you have just given me. I’ll make sure they have Noodled for at least 5 years and that they know how to Firtle with the best of em. Then I will vet them to make sure they have no skeletons in the closet which could cause issues further down the line.  I’ll get them across to you with prospective dates for interview (bearing in mind Fred, all of this work is free). Ill make sure my  candidates can meet you at a time which is good for you to interview them. At that point Ill get you to tell me what you think about each of the.  If one  proves to be your  ideal candidate who  you believe  would be an asset to Fred Quimby Noodlers PLC, and if you then decide to make them an offer, then great! I will then speak to the candidate and put your offer across to them, if they accept, then and only then does the fee come into effect. That is, a fee for the candidate you truly believe  is ideal for the open role with your c ompany. Quite possibly, Fred will  still quibble over percentages,  but the newbie consultant  should still be able to keep him realistic about pricing for your service. You know, the one which is TOTALLY FREE  until they decide to hire. Clients need to know how much work actually goes into finding people for them. Lets face it, if it was as easy as they try to make out it is, then they would fill the job themselves. Be proud of your hard work and let  your clients  know how laborious, carefully thought-out and consultative the process is that goes into  finding the best person. After all,  that’s why the 20% fee is in place, and that’s why YOU  will fill the role with the ideal candidate,  not that 8% CV mail shot crew who he referred to as his  usual recruiter. 3. Stand your ground If youve got a client who just doesnt want to play ball, dont be afraid to walk  away.  Time is money and your time is valuable, so make sure your prices reflect that. *Samlesbury Bottoms is a small village in Lancashire with a rather large underused RAF base *Widget Noodlers are making a comeback (possibly just on this blog though) *Firtling is alive and well