PAY MONTHLY 2RECRUIT MAKES RECRUITMENT AFFORDABLE AND RISK FREE
Recruitment can be a real headache for smaller companies. Even though 7.8% of the UK labour market is seeking a job*, weeding through hundreds of candidates to find the right one is a task that shouldnt be underestimated. Meanwhile, traditional agency recruitment is often priced beyond the reach of smaller companies and theres no guarantee that employees who cost a small fortune to recruit will stay at their new job. An answer to this common conundrum is provided by Pay Monthly 2Recruit, a company that offers a different way of recruiting personnel based on a 'pay as you go' monthly billing model that spreads the risk of recruitment between client and agency.
A typical recruitment agency will charge between 15-30% of a candidates starting salary within seven to 28 days, with a rebate period from eight to 12 weeks. The founders of Pay Monthly 2Recruit conducted research into this model amongst 3,000 SMEs and larger corporates and, on the back of the results, modernised the way that recruitment agencies are paid and their success is measured. Offering an entirely different and more accountable model, Pay Monthly 2Recruit spreads the cost of recruitment over two years, which can be a godsend for companies whose HR budgets are under pressure.
Louis Dimmock, director of Pay Monthly 2Recruit, comments: "Our service is based on the idea that recruitment fees must be justifiable. Speaking from our own personal experience in recruiting personnel, we wouldn't want to pay a substantial fee up front: this ties cash up with no guarantee of the success or length of the placement. Often, with the conventional agency model, if a new employee leaves after just six months, the client has already paid in full and must fund the whole process again from scratch. The agency 'wins' and has very little incentive to ensure it finds employees who are likely to stay in their jobs. This costly and unpredictable system clearly isn't attractive to smaller companies, especially during the downturn."
With the Pay Monthly 2Recruit model, clients only pay the full recruitment agency fee if a suitable candidate is found and then stays in the job for over 24 months. Pay Monthly 2Recruit works hard to supply the right candidate and is paid in equal monthly instalments for the duration of their employment, up to a maximum period of 24 months. This amounts to no more than average agency costs and avoids a big payout at the start, which can hurt the cash flow of smaller companies.
Dimmock says: "We send our clients suitable, well-vetted candidates who will become an asset to their business. It makes 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 of this failure. Our model also means that the employer has a longer opportunity to 'test drive' a new employee without subjecting themselves to full recruitment costs.
"After all, why should the client be the only party who is out of pocket if a candidate leaves their job shortly after being recruited, adds Dimmock. At Pay Monthly 2Recruit, if a recruit doesnt work out, the client either stops paying the fee or we source another candidate while receiving the same monthly fee as before, so theres no financial strain and very little risk."
He concludes: "Pay Monthly 2Recruit puts professional recruitment within easy reach of smaller companies who can benefit from our expertise and avoid the trials and tribulations of performing their recruitment function in-house."