Anyone in charge of building teams understands the difficulty of finding great talent in an economy where unemployment is at an all-time low, and actually negative in some industries like tech. There are more ways than ever to connect to great talent (LinkedIn, Facebook, ZipRecruiter, etc) but even less time for resource strapped department heads or HR leaders to take advantage of those outlets. This is where staffing and recruiting companies can come in to help find that elusive new hire and luckily there are several options—some newer and more innovative—to make these services even more affordable.
In the world of small businesses and start-ups many companies take advantage of fractional leaders (Fractional COO, CTO, CFO, etc). In addition, there are Fractional HR and Fractional Recruiting options (find a useful video here). Fractional recruiting is paid for per hour worked so you can easily budget for how much time you need rather than dealing with a large invoice after a recruiting firm finds you that perfect candidate. This option allow you to turn on the service when you need some extra recruiting help and then turn it off when you have enough candidates or have the bandwidth to do the work internally. You do pay for the hours worked regardless of the outcome so you could pay a bunch of money and not have a new hire to show for it.
- Pay per hour
- Turn on/Turn off and can set exact amount of time
- Easy to budget for monthly
- Often much less expensive than typical contingency model
- Costs regardless of a finding you a candidate so can be more risky
Recruiting firms have been around forever. They are the matchmaker of the corporate world. They have outstanding professional networks, strong tools, and work hard to help their clients fill tough roles. Working with these firms will cost you 20-30% of the new hires’ annual salary if they find you a candidate you hire, and nothing if they don’t. You never fully know how much time or attention you are getting from your third-party recruiter as they have many clients and prioritize the roles they are more likely to fill and get paid on. For exceptionally difficult roles you pay for their expertise and weeks of work to find you candidates—that can be quite a steep invoice for high paying roles and small budgets.
- Pay 20-30% of new hire’s salary
- No visibility into how many hours they spend on your roles
- Large invoice at the time of hire
- No priority status for your needs
- You pay nothing if you don’t hire, so low risk
Hybrid Recruiting Model
For many clients a hybrid recruiting model can be the best choice. This model involves a smaller hourly fee or a monthly retainer fee that is typically less than fractional recruiting, plus a smaller contingency fee (between 5-15%) than the typical contingency model. This model allows for you to reduce your risk and how much you will pay if the recruiting firm can’t find you a new hire, but then if they do find your perfect new person, you will have an additional invoice at the date of hire. Depending on the recruiting firm they will have different levels of insights provided to you and priority status based on different models with the hybrid usually giving you more precedence than contingency but less than fractional.
- Pay lower per hour fee plus a smaller percentage of annual salary
- Turn on/Turn off and can set amount of time usually with minimums required
- Smaller invoice at the hire
- Some priority status for your needs
- Some cost regardless of finding you a candidate
Your team’s hiring needs are unique and your recruiting partner should have the flexibility to accommodate your needs. Whether you are looking for some extra bandwidth for a time, have a difficult role that needs to be a priority, or need a partner to take on all your recruiting like an internal HR, Agile Partnering can work with you to determine which of the models makes most sense for you and the roles you are looking to fill.