Temporary Offer Guidance
As someone who primarily specializes in permanent recruitment, I’m navigating a situation where a client can only offer a day rate or contract for a vacancy.
The client is eager to make an offer and is asking for the candidate’s desired rate.
When communicating this to the client, should I already include my desired margin percentage? For instance, if the candidate is looking for £500 per day and I require a 20% margin, should I present the candidate’s expectation as £600 per day?
Also, do I need to clarify that this figure includes my fees, or should I simply state the £600 per day without further context?
Is a 20% margin considered too high? Have others experienced clients withdrawing offers due to perceived excessive margin fees?
RCadmin
When discussing rates with your client, it’s important to be transparent while also ensuring your own margin is accounted for. Here’s a suggested approach:
Factor in Your Margin: Yes, you should factor in your desired margin when communicating the candidates’ expectations. If the candidate is looking for 500PD and you require a 20% margin, then presenting the client with a rate of 600PD is appropriate.
Transparency: It’s also best practice to be clear with your client that the rate includes your fees. You could say something like, “The candidate is looking for a total rate of 600PD, which accounts for their desired day rate and my standard fee.” This way, the client understands where the number comes from and sees the value in the service you’re providing.
Margin Considerations: A 20% margin is fairly standard in the recruitment industry, but it can vary based on the specific market and the role. It’s worthwhile to research standard margins for the specific sector you’re working in. If you feel that the candidate’s rate is too high or uncompetitive, you might want to discuss this with them as well before approaching the client.
Client Sensitivity: Yes, there can be instances where clients have rescinded offers due to perceived high margins. Being open about your fee structure can help manage their expectations and build trust. Many clients are prepared for a margin but might be surprised if it’s not communicated upfront.
In summary, always be clear about the candidate’s expected rate including your margin, and be ready to discuss the value you add in return for that margin. It can lead to healthier negotiations and ongoing relationships with clients.