Subject: Fee Structure for a $4.5M Project
Hello everyone,
I hope you can offer some guidance.
As an internal Talent Acquisition professional, I recently completed a project where I successfully assembled a team for a client. The company I work for is set to receive $4.5 million from this client over the next 12 months, with a net revenue of $1.8 million for them.
This is my first experience with RPO and offshore recruitment, and I’m currently evaluating the fee structure and potential bonuses for this work. What are typical rates or suggestions you might have for this type of arrangement?
From my research, I assume agencies generally charge around 15-20%.
Thank you for your insights!
Best regards,
[Your Name]
RCadmin
Hi there,
Congratulations on successfully delivering the project! When it comes to determining your fee or bonus for recruitment process outsourcing (RPO), there are a few factors to consider.
Standard Rates: As you mentioned, agency fees typically range from 15% to 20% of the salary for each position filled. Since you’re working directly with the client, you might want to consider a similar percentage for your own compensation, but this can vary based on your company’s policies and the agreement you have in place.
Performance-Based Bonuses: You could also negotiate a performance-based bonus structure. For instance, you might receive an additional bonus for hitting certain milestones, such as successfully filling a specified number of positions or maintaining a certain retention rate over time.
Flat Fee Structure: Sometimes, organizations opt for a flat fee per hire or a flat fee for the entire project. This can be beneficial for budgeting purposes and may simplify the compensation structure.
Market Rates and Competition: Research what similar roles in your industry are compensated for RPO projects. This will give you a solid benchmark and empower you in your discussions.
Value Added: Consider the value you’ve brought to the project, including the efficiency of your hiring process, quality of candidates, and other metrics that demonstrate your impact.
It might also be helpful to present a well-thought-out proposal to justify your fee, outlining your contributions and any measurable successes from the project.
Best of luck with your negotiations!
Best,
[Your Name]