Hiring new staff is crucial for your business’s success. You want to attract the best talent, but recruitment contracts often heavily favour the recruiter. This imbalance can lead to unexpected costs and wasted time for your business.
Knowing what to look for can significantly protect your business’s bottom line. Here are some of our tips for negotiating recruitment contracts:
- Avoid incentivising resume dumping: Recruiters sometimes send a high volume of resumes to claim exclusivity over introductions. This tactic often results in you paying for unsuitable candidates. Consider a fee structure that rewards the recruiter for submitting fewer, highly targeted candidates. This incentivises them to deliver quality, not just quantity.
- Limit exclusivity periods: Once a recruiter introduces a candidate, contracts typically grant them an exclusive period. During this time, you often cannot hire that individual for any role without paying the recruiter, regardless of how much time passes. Aim to keep these exclusivity periods as short as possible to maintain your flexibility.
- Rethink upfront payments: Many recruitment contracts demand full payment as soon as a new employee commences work. This means you pay even if the new hire doesn’t stay beyond their probation period. Negotiate a fee structure that includes trailing commissions or payments weighted towards candidates who successfully complete their probation, this encourages recruiters to find more stable placements.
- Narrow the scope: Recruitment contracts frequently have an expansive scope, covering any recruitment of a candidate they introduce, even for different positions. This means a candidate they sent for one role might apply for another independently later, and you could still owe the recruiter. Shorten the scope of engagement to specific positions to avoid unforeseen fees.
- Scrutinise additional fees: Always review the contract carefully for any hidden or additional fees that may be charged. For example, some agreements include separate fees for simply conducting candidate searches, which can quickly add up and impact your budget.
It’s important not to let a one-sided recruitment contract create unnecessary headaches for your business. ConMoto Group specialises in reviewing these agreements, ensuring they align with your best interests and protect your bottom line. Drop us a line with any queries.
