Temporary Offer Guidance
I typically focus on permanent recruitment, but I’m navigating a situation with a client who can only provide a day rate for a role.
The client is keen to extend an offer and is inquiring about the candidate’s expected rate.
Should I factor in my desired margin percentage when advising the client on the candidate’s expectations? For example, if the candidate is asking for £500 per day and I need a 20% margin, would I present the candidate’s demand as £600 per day?
Should I clarify to the client that this amount includes my fees, or would I be better off simply stating the £600 per day without further context?
Is a 20% margin too high in this context? Have others experienced situations where clients withdrew offers due to high margin fees?
RCadmin
It’s great that you’re seeking clarity on how to handle day rates and margins in a temporary recruitment context. Here are some insights that might help:
Factoring in Margin: Yes, when discussing the candidate’s rate expectations with the client, it’s a good practice to factor in your desired margin. If the candidate is looking for £500 per day and you desire a 20% margin, communicating £600 per day makes sense. This ensures that you cover both the candidate’s expectations and your fees.
Client Communication: Transparency is key in recruitment. It’s advisable to mention that the quoted rate includes your fees. You could present it as “The candidate is looking for £600 per day, which encompasses their desired rate and our fees.” This helps to manage expectations and builds trust with your client.
Margin Percentage: A 20% margin is not uncommon in contract recruitment, but it can vary based on industry norms, the specific role, market conditions, and the client’s budget. It’s important to know your market to assess if this percentage is competitive.
Rescinded Offers: While clients can rescind offers for various reasons, excessive margin demands can be a factor. If the client perceives your fees as too high without justification, it could lead to reconsideration. Make sure your value proposition is clear and that your expertise justifies the margin you seek.
Ultimately, clear communication and justification of the rates can help mitigate concerns from clients regarding margins, leading to a smoother negotiation process.