Temp Offer Advice
I typically focus on permanent recruitment, but I’m seeking clarification on handling temporary roles.
I have a client ready to offer a day rate for a position and they’re inquiring about the candidate’s expected rate.
When discussing the candidate’s expectations, should I include my desired margin percentage? For example, if the candidate expects £500 per day and I need a 20% margin, would it make sense to quote the client a rate of £600?
Additionally, should I inform the client that this figure includes my fees, or simply present the rate of £600 without further context?
Is a 20% margin considered too high? Have others experienced situations where clients revoked offers due to the margin fees being perceived as excessive?
RCadmin
When discussing rates with your client, it’s important to be transparent while also ensuring you protect your interests. Here are some steps to consider based on your situation:
Factor in Your Margin: Yes, when communicating the candidate’s desired day rate, you should factor in your margin. If the candidate is expecting 500 PD and you require a 20% margin, you should present the total rate as 600 PD. This way, you cover your fees while also aligning with the candidate’s expectations.
Be Transparent: It’s generally beneficial to communicate that the rate you are providing is inclusive of your fees. This builds trust with the client and helps manage their expectations. You can phrase it like, “The candidate is looking for a total package of 600 PD, which includes all fees related to the recruitment process.”
Assess Industry Standards: Twenty percent margin isn’t necessarily too high, as margins can vary widely depending on the role, market, and skill set. It’s worth checking standard rates in your industry or local market to gauge whether your fee aligns with what is common practice.
Client Feedback: While some clients may balk at a higher margin, it’s essential to remember that there’s often a balance between quality candidates and the fees associated with their expertise. If a client is serious about filling the role with a quality candidate, reasonable fees are typically accepted.
Avoiding Rescinded Offers: While clients may rescind offers for various reasons, it’s usually due to a lack of understanding or miscommunication about fees. Being upfront about your margins from the get-go can help mitigate this risk. Make sure both the client and candidate have a clear understanding of the final numbers involved.
In summary, communicate openly about the total expectations, include your fees in the context, and be ready to justify your margin based on market standards. This approach should help maintain client relationships and secure successful placements.