Subject: Seeking Guidance on Fee Structure for a $4.5M Project
Hello everyone,
I hope you can provide some insights.
I’m currently working as an internal Talent Acquisition specialist and have recently completed a project where I assembled a team for our client. Over the next 12 months, our company is set to receive $4.5 million from the client, alongside a net revenue of $1.8 million.
This is my first venture into RPO and offshore recruitment, and I’m now in the process of discussing the fee and potential bonus structure. I would love to hear your thoughts on what is typically charged in these situations.
I’m anticipating that agencies might bill between 15% and 20%.
Thank you for your help!
Best regards,
RCadmin
Hello,
Congratulations on successfully delivering your project! That’s a significant achievement, especially in RPO/offshore recruitment.
When it comes to fee structure for recruitment, it can vary widely depending on the scope of services provided, the complexity of the positions being filled, and the specific agreement made with the client. Here are a few considerations:
Industry Standards: As you mentioned, agencies typically charge between 15-20% of the annual salary of the roles filled. However, if you’re providing ongoing support, you might consider a retainer model or a flat fee structure based on the total project value.
Performance-Based Bonus: Since you’re contributing to an RPO model, implementing a performance-based bonus can be beneficial. This could be tied to metrics like time-to-hire, retention rates, or satisfaction scores from the client.
Tiered Fee Structure: For significant projects, a tiered structure may work well. For example, you could charge a lower percentage for the first few hires and increase it for additional hires or based on the scale of the recruitment effort.
Negotiation Leverage: Given the scope of your project and the overall value, you might have room to negotiate a higher percentage. Just ensure that you clearly articulate the value and quality of the service you’re providing.
Consult with Industry Peers: It’s often helpful to reach out to colleagues, or industry groups to get insight into what similar companies are charging.
Ultimately, the key is to ensure that your fee reflects the value you’re delivering to the client while staying competitive in the market. Good luck with your discussions!
Best,
[Your Name]