Flat Fee vs Recruitment Agency: One Simple Cost Example
Hiring on a £35k salary and facing a 20% agency fee? That’s a whopping £7,000 gone before you even meet a candidate. Flat fee recruitment cuts through the guesswork with one clear price, no surprises. Let’s break down the numbers so you can see exactly where your money goes. If you’re hiring more than once this year, this matters.
Cost Breakdown: Agency vs Flat Fee
Exploring the real numbers behind recruitment costs can be eye-opening. Let’s dive into a straightforward example highlighting the differences between agency fees and flat-fee recruitment.
£35k Salary Example
Imagine you’re hiring for a role with a £35k salary. At first glance, it might seem straightforward. But what happens when you factor in recruitment costs? Many businesses don’t realise how quickly these can add up. With a traditional agency, you’re looking at a hefty percentage of that salary as a fee.
20% Agency Fee Costs
Now, consider a 20% agency fee. That’s £7,000 on top of the salary. Before your new hire even starts, you’re already significantly over budget. This extra cost often surprises business owners and HR managers, affecting the bottom line more than anticipated. It’s a prime example of why many are reconsidering traditional recruitment methods.
Flat Fee Recruitment Savings
Enter flat-fee recruitment. Instead of a percentage, you pay one fixed price. This approach can save you thousands. Say goodbye to surprises and hello to a predictable budget. Businesses often find this model not only cost-effective but also easier to manage. The savings can be substantial, especially if you’re hiring multiple roles.
Benefits of Flat Fee Recruitment
Switching to a flat-fee model isn’t just about saving money. It’s also about gaining other significant advantages that can improve your recruitment process.
Predictable Recruitment Costs
Knowing exactly what you’ll pay upfront brings peace of mind. No more guessing games or unexpected invoices. When costs are predictable, planning becomes easier. You can allocate resources more efficiently, focusing on what truly matters: finding the right talent for your team.
No Commission Recruitment Benefits
With flat-fee recruitment, there’s no commission. This means more of your budget goes towards attracting the best candidates. Avoiding commission fees means you spend less while still accessing top-tier talent. This model shifts the focus back to quality, rather than quantity.
Quality Candidates with Better Job Adverts
Flat-fee recruitment often results in higher-quality candidates. Why? Because investments go into crafting better job adverts and targeting the right audience. Well-written adverts attract more suitable applicants, saving you time in the long run. It’s about getting it right from the start.
Making the Smarter Choice
Choosing the right recruitment strategy can feel daunting, but understanding the benefits of flat-fee options can make the decision easier for SMEs.
SME Hiring Support
Small to medium enterprises benefit greatly from flat-fee recruitment. It provides the support needed without breaking the bank. With tailored solutions, SMEs can compete with larger corporations in the talent market. It levels the playing field, offering expertise without the heavy price tag.
Reducing Time to Hire
Time is money, especially when it comes to hiring. Flat-fee recruitment streamlines the process, reducing the time it takes to fill positions. With strategic advertising and expert guidance, vacancies are filled faster. This means less downtime and more productivity for your business.
Cost-Effective Hiring for SMEs
In the end, it’s all about cost-effectiveness. SMEs need solutions that offer the best value for money. Flat-fee recruitment fits the bill, providing a straightforward, budget-friendly approach. It’s a smarter, more efficient way to bring great talent into your company without the usual stress or expense.