The existing paradigm of recruitment in which recruitment agencies generally charge anywhere between 12% to 20% of a candidate’s totalremuneration package has been, for many years, a cause of significant financial pain for many companies and HR managers.
Too often, busy HR managers with hectic schedules (but tight budgets) have had to reluctantly conduct their own recruitment campaigns in order to meet their budgets, or save money to put against other important HR initiatives.
Emergence of new players
In response to this Australia has, over the last several years, witnessed the gradual increase of exciting and highly viable alternatives to the conventional agencies. We now have, as recruitment consumers, the ability to access agencies offering high quality recruitment solutions at affordable pricing.
Unfortunately, these new agencies are not as well-known as they should be (especially in the corporate world) due mainly one suspects to their small marketing budgets. However, the word is slowly getting out and savvy HR managers are starting to save serious dollars for the same recruitment services.
Response to high quality recruitment at affordable pricing model
Initial reactions have ranged from disbelief to delight. The latter has mainly come from small businesses, who for years have cried out for affordable recruitment only to be denied by agencies tied to the big end of town. The disbelief, or scepticism, has mainly come from HR managers who have never known anything else other than high priced agencies. But this is starting to change.
Thousands of HR managers are starting to understand that a quality recruitment service does not have to be expensive. There are a growing number of recruitment agencies who have repeatedly demonstrated that great candidates can be found at a fraction of conventional pricing models. They mainly work with price sensitive small businesses but are starting to get traction with bigger firms.
Service levels of this model exceed the norn
One of the pleasantly surprising aspects of these affordable agencies is that their service levels are often better than the larger conventional agencies, where staff turnover is a common bug bear. Their smaller size and thinner profit margins compels them to provide very high service levels so they can get that all important repeat business. When you’re only making small profits on jobs, you can only remain financially viable by minimising expensive marketing campaigns and maximising word-of-mouth referrals.
More and more companies with an eye to sensible pricing are starting to reap the rewards of this new affordable recruitment model. They are saving money and getting great results.
Case in point: The Recruitment Alternative wins Anytime Fitness preferred supplier contract Australia wide
Recently, we filled 6 roles for Anytime Fitness and as a result of our affordable pricing and excellent quality of service, we’ve since been awarded ‘preferred supplier status’ for recruitment for their hundreds of gyms around Australia. We couldn’t be more thrilled with the relationship and success we’ve had, and will continue to have, with Anytime Fitness.
Julie Mazzarella, Franchise Support Manager from Anytime Fitness, said, “ We had such a great experience when Anytime Fitness Head Office worked with The Recruitment Alternative to recruit for over 6 key positions, we felt we had to share that great service, result and cost with our Franchisee group”.
