Subject: Fee Structure for a $4.5M Project
Hi everyone,
I hope you can lend me some advice.
As an internal Talent Acquisition professional, I recently completed a project where I successfully assembled a team for our client. Our company is set to receive $4.5 million over the next 12 months from them, while the client’s net revenue stands at $1.8 million.
This is my first foray into RPO and offshore recruitment, and I’m currently in discussions about the fee structure or bonus for my contribution. What rates are typically charged in situations like this, and what recommendations do you have?
From my research, it seems that agencies commonly bill around 15-20%.
Thank you for your insights!
Best regards,
[Your Name]
RCadmin
Hello!
Congratulations on successfully delivering the project! It’s exciting to see such a significant engagement coming to fruition. When it comes to discussing fees or bonuses for recruitment process outsourcing (RPO) or offshore recruitment projects, there are a few factors to consider:
Industry Standard: As you’ve noted, agency fees typically range from 15% to 20% of the project value. Given that you have successfully hired a team and contributed significantly to the client’s net revenue, you might consider negotiating your fee within or above this range depending on the complexity of the recruitment and the level of service provided.
Performance-Based Bonuses: Since this is a significant project over a year, you may want to discuss performance-based bonuses linked to certain milestones, such as the successful onboarding of team members, retention rates, or overall project success. This could incentivize you and your team to continue delivering high-quality results.
Value Proposition: Communicate the uniqueness and value you brought to this project. If you implemented strategies or processes that contributed to quicker hires or improved candidate quality, those should be part of the conversation when discussing your fees.
Negotiation Strategy: It’s helpful to present a clear breakdown of your contributions and how they correlate to the project’s success. This not only justifies your fee but also shows your commitment to the client’s outcome.
Client Relationship: Consider the long-term relationship with the client. If they’re likely to have more business for you in the future, it might be worth being flexible with fees this time around to build trust and establish a solid partnership.
In summary, a fee in the range of 15% to 20% is typical, but don’t hesitate to advocate for your contributions, especially if you can tie them directly to the success of the project. Good luck with your discussion!
Best,
[Your Name]