With the right recruitment partner, employers can now find and employ better people in an easy and affordable way.
As more and more SME business owners and leaders wake up to the true cost of in-house recruitment, the recruitment pendulum is set to swing towards professional recruitment firms. Those who can help their clients overcome the cash flow impact of their fee stand to benefit most.
In an earlier article in this series, we compared the true cost of in-house recruitment (using online job boards) with the cost of using a professional recruitment firm charging a 15% fee, and found that:
- In-house recruitment is actually 6.8% more expensive than using a professional recruiter, when all hidden costs are brought to account.
- The biggest impediment to using a professional recruitment firm remains the cash flow impact of having to pay a 15% fee, 7-days after appointment.
However, even once these hidden costs are revealed, the majority of SME owners and leaders are likely to maintain the status quo to avoid the up-front cost of paying a substantial and un-budgeted recruitment fee.
“But, that’s not rational” you say ... and perhaps you’re right.
Let’s take a closer look at the behaviour of most employers and understand why knowledge alone will not change their behaviour.
Below are the commonly available funding options for an un-budgeted fee of $10,000 - $20,000, and know why they are typically rejected as payment options:
In other words, none of the commonly available funding options are considered suitable to fund the unexpected and un-budgeted cost of a large recruitment fee.
This is where HirePay comes in.
By enabling employers to enter into a low-doc funding arrangement online (funding approved in less than 30 seconds), and spread the cost of the recruitment fee over 4 easy monthly payments; HirePay addresses the one remaining reason stopping most SMEs from using professional recruitment firms for more job placements.
Extracting the full benefit of this break-through funding solution is easy. Simply:
- Tell your clients and prospects that you are now accepting HirePay
- Explain the advantages
- Include a HirePay link on every invoice you send out
Even if only 10% of the current online job board placements are switched to professional recruiters, it will grow the professional recruitment sector by over 50% (from 15% to 23.5%).
If that’s not reason enough to get excited, there are also a number of other benefits to using HirePay, including:
- Receive 100% of your fee within 24 hours (no cost to you).
- Eliminate the cost and hassle of debt collection.
- Reduce business risk by making collections HirePay’s responsibility (no recourse on you).
In our next article, we will explore the true cost of a bad hire, and give you one arrow to add to your quiver of reasons why employers should switch to professional recruiters without delay.
Written by HirePay
HirePay is a technology platform that solves cash flow issues associated with the hiring process. The company was founded to help businesses hire better people by enabling them to use professional recruiters, or top consultants and pay their invoices in 4 easy monthly instalments (HirePay pays in full within 24 hours). HirePay also advances funds for contract work and labour hire. HirePay’s solutions have turned financing for hiring from a painful process into an easy one that’s completed and approved in minutes and is a win-win for all parties.