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What Is Fixed Cost Recruitment?

What is fixed cost recruitment?

And why are small to mediums sized businesses (SMEs) using fixed cost recruitment agencies?

Historically you would be limited to either using a traditional recruitment agency who will often charge a large fee (UK average is £4500), or try and do the recruitment all by yourself. 

Whilst some traditional [contingency] recruitment agencies provide an invaluable service, especially in niche areas; the reality is that all businesses could do most recruitment by in-house.  Providing that the processes and resources are in place to manage the workload. 

Placing a job advert – cheaper than buying directly

A fixed cost agency typically charges between  £200 – £1000.  You may just wish to place a job advert with them and manage the rest of the recruitment in-house.  If so, you are likely to pay from around £200. Most fixed cost agencies will let you use their Candidate Management Software too, which will improve your hiring processes and make ‘doing it by yourself’ easier.  Placing a job advert through a fixed cost agency is also likely to be cheaper than buying a job advert directly from a job site.

Extra support- managed service

If you need extra support, but would rather avoid high recruitment agency fees, you may wish to opt for a managed service.  If so, you are likely to pay from around £800.   This service could include telephone screening, the agent may offer to book applicants in for your face to face interviews.  Of course, a fixed cost agency cannot be an expert in every industry, so the support they provide is more likely to be administrative.

Flexibility and 95% saving

Either way, the flexibility of support will provide you with as little or as much support as you need to be able to manage the workload.

More and more SMEs are using fixed cost recruitment agencies to save up to 95% on recruitment fees.  Rather than doing the recruitment completely by themselves, the external support of creating and launching the job advert, and filtering the CVs helps them to focus on the latter stages of the recruitment process such as the face to face interviewing. 

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