Why paying a Recruiter a Retainer Fee is the smart move
Why paying a Recruiter a Retainer Fee is the smart move.
The current Recruitment market, almost regardless of industry, is tight. Skills shortages are high. Loyalty amongst employees is questionable. Markets are unsettled. Ever since Covid, which was over 3 years ago at the time of writing, the markets have been up and down like Tower Bridge.
Where does this leave Employers trying to hire
Employers ten years ago would likely scoff at how much things have changed when it comes to hiring people. Employees now have demands. The demands they have, they tend to get. Remote work and flexible hours are commonplace. This is where despite you the employer paying someone a wage, they can dictate where they work and when they do it. Imagine paying for a flight, but the pilot deciding when they fancy flying and where to. It is literally the tail wagging the dog.
Furthermore, competitor companies are bending over backwards to give people what they want. If you are willing to bend to the talent, they will go elsewhere.
Therefore if you want to hire talent in this mad world you need to be very smart about it.
What is a Retainer Fee?
A Retainer Fee involves paying a Recruiter or Recruitment agency an upfront fee to exclusively obtain their services to find you candidates. But why? What is so smart about that?
For every job out there you probably have 9 people in work who are good and 1 out of work. That 1 out of work candidate is probably out to 5 interviews without even having to apply. All the recruiters are after them the second they become out of work.
Therefore if your tactic is get a headhunter to approach the 9 in work, without any prior relationship, and somehow convince the 1 out of work candidate to go for you over 5 other companies is wishful thinking. It just won’t happen as an ongoing solution. It’s pot luck. Roll the dice. Have a gamble.
Paying a Recruiter a Retainer Fee Solution
The way the best Recruitment agencies work – Revorec being one – is that we are pro-active rather than reactive. What is the difference in layman terms?
We work STEM sector niches – Engineering, Manufacturing, Energy, Science and Tech.
Each recruiter here knows all the candidates in their given niche who are in work, but have an eye out for the right opportunity. We therefore know what that right opportunity looks like for them. And we have a relationship and trust with them. So when a client comes along and asks for candidates who do x, we know what candidates fit the bill and they’ll listen to us.
That takes work, time, effort and experience. If a company comes along and says here is a 1 off possible fee – send us what you have – we can help. But if a company comes along and says we will pay you a retainer fee for your services and it is exclusive who do you think we will prioritize?
If you are struggling to hire – do the smart thing – get a retainer fee in place.