A blog by Director Mike Bowler (FIRP).
I have always been a contract recruiter. It suited me because….
Perm is very different - I appreciate there is a great deal of control and relationship building that goes on, but in its crudest form perm is a one-time fee, then fingers crossed that the candidate makes it through the rebate period. The end!
Will this model change?
We no longer buy CDs, we subscribe to Spotify; no real box sets, we watch what we like on Netflix; we don’t spend hundreds of pounds on Microsoft software, just pay as you go with Office 365.
So how could Pay-as-you-go Perm work in the recruitment industry?
Let's use an example of a £60k job with a 15% fee - £9,000.
Best case scenario, a candidate retires at the company, everybody is happy and the client returns to the recruiter again and again for all future requirements. In reality, it is more likely that the candidate may move on. The client replaces directly or through a competitor. Control is lost. Business is lost.
So how about a Pay-as-you-go model – same £60k job but a 20% fee paid in monthly instalments of £500 over 2 years.
What’s not to like if you are a client?
At this point traditional perm consultants may be spitting their tea out! £500 a month instead of £9k...and the cash stops if the candidate leaves!
But think about it...
This is just a thought. I don’t actually see it happening in the market, but I’d be interested to know if anybody does work this way? What do recruiters think? Is it something clients would welcome? Let's connect on Linked In and chat.
Mike has worked within the recruitment industry since 1995 — as a top-billing consultant before moving on to a managerial and directorial role. As part of the executive management team, Mike helped grow a small business into an AIM listed company — establishing a business unit from scratch and developing it into a £multi-million perm and contract division, where he oversaw 50 members of staff. Mike is a Fellow of the Institute of Recruitment Professionals (FIRP) and has mentored a number of IRP award-winning consultants throughout his career.