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TIME FOR CHANGE TO REDUCE RECRUITMENT RISK

TIME FOR CHANGE TO REDUCE RECRUITMENT RISK
 
Pay Monthly 2Recruit Launches Revolutionary Service
 
At a time when businesses need to keep an even tighter grip on cash flow, many organisations are keen to avoid the expense and potential risk of using recruitment consultants.  Following extensive research among 3000 SMEs and larger corporates*, the founders of a new agency, Pay Monthly 2Recruit, believe that the time has come for a revolution in the way that recruitment agencies are paid and their success is measured.
 
2Recruit director Louis Dimmock explains the thinking behind the agencys revolutionary new business model, which spreads the cost of recruitment over two years: Our approach was developed through the directors review of their own businesses staffing requirements and their first hand experience of running a successful recruitment business.
 
As seasoned business owners, they asked themselves: For what recruitment service would I be happy to pay full rate fees? They came to the conclusion that they certainly wouldnt want to pay a substantial fee up front, tying up significant amounts of cash, with no guarantee of the success or longevity of the eventual placement. Often, using a conventional agency means that if a new employee leaves after only six months the client has already paid in full and has to fund the whole process again from scratch. he explains.
 
We then tested the theory by conducting telephone interviews with 3000 potential recruiters to find out their views.  The general consensus was that a product that made the recruitment process less risky and expensive would be welcome. In fact, some had even stopped using recruitment agencies altogether, either because of disappointing past experiences, perceived cost or a combination of the two.
2Recruits founders believe that it is unique, in that the full recruitment agency fee is paid only if a suitable candidate is placed and then stays with the clients company for over 24 months. The agency makes every effort to supply the right employee and is paid in equal monthly instalments for the duration of the candidates employment up to a maximum period of 24 months. This equates in total to no more than average agency costs. Therefore reducing the upfront of cost implications normally associated with traditional agency fees.
 
Dimmock explains how this system provides extra security for employers:
Our clients can be assured that we will do everything we can to send them suitable, well-vetted candidates who will become an asset to their business.  It makes absolutely no commercial sense for us to place a candidate as a quick fix. If a placement fails in the first two years we share the financial risk!  It also means that the employer has a longer window of opportunity to trial a new employee without incurring full recruitment costs.
 
Dimmock believes that 2Recruits unique approach redresses the relationship between employee viability and financial risk. Why should the client be the only one out of pocket if a candidate stays with their organisation for only a limited period? he asks.

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