The Flat Fee Recruitment Debate @ #trumanchester

I have been meaning to write this up for ages – Better late than never?!

This was an event not to miss.  What makes it even more amazing, is that people are still tweeting about it today! Check out #trumanchester hashtag on twitter or google it and see for yourself.

There was so much to digest from the whole event and so much has already been covered.  As a track leader, I am keen to discuss the topic closest to my heart “The Flat Fee Recruitment Debate” and follow up on my pre-#trumanchester blog post 

Unfortunately, I got accosted in a Japanese restaurant and so I was late for my own track, however, we did set up a secret track with the help of @lisascales and defined what we thought flat fee recruitment was.  Thankfully, Alan Whitford held the track floor for the first 15 minutes and got the discussions started.  My sincere apologies to everyone who waited and thanks for being so patient with me!

To set the scene; there was a variety of talent in the group from Online Recruiters (or are they Flat Fee)?  Advertising Agencies (or are they Communication Agencies)? Traditional Recruiters, Online Tendering Platforms, Jobboard Sites and Employers.  The perfect mix for a lively debate! 

So, what is Flat Fee Recruitment?  Can it be defined and is there a recognised industry term out there now?  The general consensus is that Flat Fee Recruitment is the process of charging a flat fee for a recruitment service.  Logical!  That service could be traditional recruitment, or one of the many alternative services available in today’s market.   But is it a recognised industry?  There were a few people in the group who felt that “Flat Fee Recruitment” was a specific type of recruitment service (similar to our On Demand e-Recruitment solution & as agreed at the secret track), but this was not the majority.  What was clear, was the huge array of flat fee solutions available.

With all these solutions, is it confusing to the employer?  This prompted a mixed response.  Some instantly jumped on the “yes” bandwagon, where as others strongly believed it was not confusing.  To find a way through all the different services available, it was agreed that the employer needs to know what questions to ask.  Unfortunately, unless they have been exposed to alternative approaches, it would be difficult to know what you were looking for and as such, it would be confusing… confused yet?

So, as there was no clear definition and a potentially confusing market, where does this leave the recent surge in Flat Fee Recruitment Agencies?    Andy Pierson from Networx, raised a valid point on whether these new (and very, very low cost models) are detrimental to the industry as a whole? But, it was agreed that it isn’t just the flat fee recruitment companies that are creating a bad reputation for the recruitment industry, but the recruitment industry has a very poor reputation anyway!  

A recruiter from a high street retailer made some valid and commonsensical comments to help us understand how we (the recruitment & flat fee industry) is perceived.

They use a variety of recruitment methods, including Flat Fee (like our On Demand), traditional Recruitment Agencies, Direct Head hunting, social media and their website etc.  The recruiter felt that there is a place and a time for all approaches.  It depends on the vacancy, the budget and the time required to fill the position.  Although cost is obviously an issue for recruitment, when you look at the growing resurgence of Flat Fee Recruitment Agencies, the difference between a couple of hundred pounds is not the deal breaker.  Interestingly, as all these flat fee recruiters offer something unique, it is the service that they offer and their strategy in helping the employer fill the role that is important.  Their recent Flat Fee PSL process, has highlighted just how many Flat Fee suppliers there now are, and how many different services exist under this one term.

It was a good debate, but raised more questions than answers really… How confused is the market?  Does it matter how flat fee recruitment agencies define themselves? How would an employer know what questions to ask these suppliers when so many services exist?  How do you filter through the poor and find the good suppliers to meet your needs? 

At the end of the day, one thing was clear, there are a whole variety of flat fee models on the market and all offer a different kind of service.  The recruitment industry has a terrible reputation and flat fee recruiters are not really making this better or worse!  Finally, if a company is looking to use these suppliers, get savvy and research the market!

Cheers Bill – Brilliant event!

Lis