Do you all remember when fuel prices were skyrocketing? It really was not that long ago. Everyone raised their prices. Airlines started applying added fees to your ticket. Delivery charges went from $25 for local furniture companies to $50. Everyone was tuned into the hardships created by the rising costs. We choked down the increases and went on with our lives.
So has anyone heard of a company or service that has reversed those increases driven by high fuel costs? I don’t know about you, but I can now fill my car with fuel for the week for less than half of what it cost just two years ago. Are airlines offering those who booked tickets six months ago a $50 check when they board the flight? Is a company that does landscaping saying costs are down for one of the major components of variable costs and now you, the customer, will see a 10% decrease?
What the heck does any of this have to do with recruiting? Here is my point…we live in a world of supply and demand. It is difficult to raise prices, but easy to keep the increase for a longer than a deserved period of time once you make the effort to implement an increase. Check your invoices this month for surcharges driven by old news regarding fuel if you do not believe me.
Have you been filling jobs with ease in record numbers, or are you getting more difficult assignments for a very limited collection of candidates? Thinking that tough jobs with limited candidates to fill from describes a typical job now. Am I right? Guess what that means? Good recruiters are in demand…supply is low!
Now is the time. Charge what you are worth. Once you battle through the pain to increase recruitment fees, you will reap the rewards for many months, perhaps even years after.
A word of caution…do not be that company that fails to pay attention and keeps surcharges well beyond the period they are appropriate. Adjust recruitment fees to market conditions…your services are in demand right now, so act accordingly.
Perhaps a surcharge is a way to make this more palatable to a client. “Wow, that is a tough job in a limited candidate pool. We charge a 5% premium for those types of positions. Or, this type of search requires an engagement fee of 25% of the fee up front.” Figure out a plan and a message that will work for you. No gouging or being unfair. Be realistic and strike a balance with regard to recruitment fees.
Not too long ago it was Valentine’s Day here in North America…maybe the customs are different around the world but a dozen red roses is considered a nice way to mark the occasion for your loved one. Guess what happens to prices for roses at this time of year? Yes, they double or triple in price. And red roses, a sign of love (in greatest demand), rise in price the most.
Convertible cars cost more to buy in the spring than at the end of the summer. Concert tickets cost more for popular groups or performers than those that are out of style (demand). Hotel rooms cost more on Friday and Saturday nights. A beachfront vacation rental home costs more in the summer than in the dead of winter. I could go on….
Supply and demand…think about how your recruitment fees are connected to the bigger economy and act accordingly.
Good idea and thanks for making me think about my fees!
yea sometimes i feel the salary is too low
I would like to know more about the fees charged for placing FTE’s. I usually see the standard 20% and sometimes 25% and rarely 30% depending on the job.