• Recruiters
    • For Recruiters
    • About NPAworldwide
      • About NPAworldwide
      • International Recruiters Network
      • Practice Groups
      • Geographic Areas Facilitate Split Placements
      • Split Placement Network Return on Investment
      • Split Fee Network Leadership
      • Governance of NPAworldwide’s Recruiting Professionals Network
      • Meetings & Events
    • About Membership
      • About Membership
      • 9 Reasons to Join NPAworldwide’s Split Network
      • Group Discounts for NPAworldwide Members
      • Join Our Recruiting Professionals Network
      • Cost of Membership in our Split Fee Recruitment Network
    • Recruiting Resources
      • Recruiting Resources
      • Help
    • Find A Member
  • Employers
    • For Employers
    • About NPAworldwide
      • About NPAworldwide
      • How NPAworldwide Works
      • The Benefits of Working with NPAworldwide Recruiters
    • Services
      • Services
      • Recruiting Resources: Contracting Employees
      • Recruiting Resources: Background Checks
      • Recruiting Resources: Pre-Employment Testing
      • Recruiting Resources: Outplacement
    • Links for Employers
    • Find A Member
  • Job Seekers
    • For Job Seekers
    • About NPAworldwide
      • About NPAworldwide
      • How NPAworldwide Works
      • The Benefits of Working with NPAworldwide Recruiters
      • Practice Groups
    • Find A Member
  • Sponsorship Opportunities
  • Job Board
  • Resources
  • Blog
    • Independent Recruiting Blog
    • Press Releases
    • Video Testimonials
  • Ready to Apply?
  • Contact Us
  • Facebook
  • Twitter
  • LinkedIn
  • YouTube
  • Instagram
  • —
  • —
  • —
  • —
  • Job Seeker Resources
NPAworldwide - Global Recruitment Network
  • Recruiters
  • Employers
  • Job Seekers
  • Blog
  • Member Login
NPAworldwide - Global Recruitment Network
Apply Today
  • Navigation
    • Home
    • Recruiters
    • Employers
    • Job Seekers
    • Blog
    • Member Login
    • More
      • Recruiters
        • For Recruiters
        • About NPAworldwide
          • About NPAworldwide
          • International Recruiters Network
          • Practice Groups
          • Split Placement Network Return on Investment
          • Split Fee Network Leadership
          • Governance of NPAworldwide’s Recruiting Professionals Network
          • Meetings & Events
        • About Membership
          • About Membership
          • 9 Reasons to Join NPAworldwide’s Split Network
          • Group Discounts for NPAworldwide Members
          • Join Our Recruiting Professionals Network
          • Cost of Membership in our Split Fee Recruitment Network
        • Recruiting Resources
          • Recruiting Resources
          • Help
        • Find A Member
      • Employers
        • For Employers
        • About NPAworldwide
          • About NPAworldwide
          • How NPAworldwide Works
          • Advantages of Working with NPAworldwide
        • Services
          • Services
          • Recruiting Resources: Contracting Employees
          • Recruiting Resources: Background Checks
          • Recruiting Resources: Pre-Employment Testing
          • Recruiting Resources: Outplacement
        • Links for Employers
        • Find A Member
      • Job Seekers
        • For Job Seekers
        • About NPAworldwide
          • About NPAworldwide
          • How NPAworldwide Works
          • The Benefits of Working with NPAworldwide Recruiters
          • Practice Groups
        • Find A Member
        • Job Seeker Resources
      • Sponsorship Opportunities
      • Job Board
      • Resources
      • Blog
        • Independent Recruiting Blog
        • Press Releases
        • Video Testimonials
      • Ready to Apply?
      • Contact Us
      • Social Media
        • Facebook
        • Twitter
        • LinkedIn
        • YouTube
        • Instagram
      • International
        • —
        • —
        • —
        • —

Maintaining Fee Integrity During a Downturn

by Veronica Blatt

When I’m not wearing my marketing/communications hat for NPAworldwide, I’m hard at work planning and executing our in-person meetings around the world. There is an interesting parallel between hotels and recruiters as it pertains to room rates and fee integrity. Hotel room pricing is very much subject to the laws of supply and demand. When supply is low and demand is high, hotel rooms become more expensive. Conversely, when supply is high while demand is low, hotel rooms typically become more affordable. However, a few economic downturns ago, hotel rooms got MUCH more affordable – hotels offered fire-sale rates in a desperate attempt to fill rooms and bring in lucrative meetings business.

Eventually, the market turned around, but you know what? Room rates did NOT rebound to their pre-recession levels. For YEARS. That’s right – it took YEARS for room rates to recover, even though demand was high. It seems that consumers who had been used to paying bargain-basement prices could not be convinced that the hotel rooms were “worth” more. Hotels learned from this and now operate from a “rate integrity” viewpoint – so as meeting planners, we might see additional concessions during a slow economy, but we are NOT seeing huge discounts on room rates. And that’s where fee integrity comes in.

During a slow economy, your clients will be in money-saving mode. One of the first things they are likely to do is ask for discounts on recruitment fees. I strongly believe recruiters need to tread VERY carefully here. If you have been charging 25% or 30% fees to your clients, and all of a sudden offer to provide the exact same service for 18% or 20%, it is extremely difficult to recover those higher fees when the market improves. You will be stuck discussing price instead of value. Clients will not believe that your service should “cost” 25% or 30% if you were willing to sell it for a much lower price in the recent past. Much better if you can adopt a fee integrity mindset in the form of offering additional (or different) concessions while maintaining your fee structure. What could that look like? Here are some ideas:

  • Try a flat discount of $1,000 or $2,000 dollars (or some other amount that makes sense for you)
  • Even better, tie that discount to shorter payment terms – this has the added benefit of giving you better cash flow AND fewer receivables to manage
  • Consider unbundling your services to allow clients to select an a la carte package at a lower price point
  • If you feel you MUST offer a significant percentage reduction, remove some services so that you are not offering 100% of your normal service for 75% or 80% (or less) of your normal fee
  • Offer your clients the option to pay in installments. Services like APositive and HirePay (we have relationships with both) pay the recruiter upfront for a nominal fee and then collect installment payments from the client.

This is a uniquely challenging time for all businesses and business owners. Recruitment firm owners will need to be creative and flexible to maintain strong client relationships. That includes creativity and flexibility in pricing. Deeply-discounted fees may help you in the short-term but are likely to be damaging to you (and the profession as a whole) in the long-term. Listen to your clients, understand their needs, and work on creative solutions that allow you to maintain your fee integrity.

Subscribe to our blog
Tags: lowering fees | Posted in: Recruiting Resources

  • Explore Membership Split-Fee Sample
  • Subscribe to our Blog
  • Recent Posts

    • Mastering the Art of Employer Branding
    • Introducing NPAworldwide PowerUp Conferences
    • What Are Soft Skills and Why Are They Crucial for Career Growth?
    • Building Trust in a Recruitment Network
    • The Most In-Demand Sales and Marketing Jobs in 2025
  • Press Releases

    • Taufik Arief of People Search International Receives Prestigious 2025 NPAworldwide Chair’s Award
    • NPAworldwide Welcomes New and Returning Board Members to Drive Strategic Growth and Innovation
    • NPAworldwide Unveils Bold Brand Evolution to Reflect Global Growth
  • Blog Topics

    • Mastering the Art of Employer Branding
    • Introducing NPAworldwide PowerUp Conferences
    • What Are Soft Skills and Why Are They Crucial for Career Growth?
  • Quick Links

    • For Recruiters
    • For Employers
    • For Job Seekers
    • Apply Today
  • For more than 60 years, NPAworldwide has been connecting independent global recruiting firms to facilitate split placements. NPAworldwide is the oldest recruiting network of its kind, with an international membership of recruiting firms located throughout Europe, Asia, Australia, Africa, and the Americas.
    ©2025 • NPAworldwide
    Privacy Policy
    Please ensure Javascript is enabled for purposes of website accessibility