IN THIS MARKET YOU SHOULD NOT NEGOTIATE YOUR FEE
Published on 4 Oct 2006 at 12:38 pm.
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I know that I don’t have to make YOU aware that it is a Candidate’s market!! The current economy has more job opportunities available than it does qualified candidates to fill these openings! This situation creates many additional problems for recruiters. Candidates are definitely more demanding, usually throughout the entire interviewing process. Your candidates ARE aware of the market and they are also aware that their competition is not as fierce as it was 6 month ago.
The above situation describes exactly why you should NOT negotiate your fee in this market! Your candidates are in the driver’s seat, NOT your clients! Now more than ever your CLIENTS NEED YOU! They NEED and DEPEND on you! It is their responsibility to hire the best candidate for their open positions. They need to sell their position in their interviews. They must also convince the job seeker that their company is the Best Company to work for! Again, your clients NEED YOU! If they need you, then there should NEVER be a situation where any of your current or prospective clients ask to negotiate your fee.
If you are asked to reduce your fee simply and professionally, you need to explain to them that you have clients who are actually CALLING YOU to RAISE their fee in order to get the Best Talent you have to offer! If they try to reduce their fee, walk away from the business. As recruiters the idea of walking away from any job order is painful. You need to remind yourself that the market is different! It is your job to select the orders that have the highest fees and have best chance of being filled successfully. You will put the same amount of time into a lower fee as you will in to your highest fees. Where do you want to put your energy? Obviously negotiated fees also affect your income! It is very effective to compare your fee to what they charge for their services. For example: A hotel is not going to give you the penthouse suite for $49. It really isn’t about the dollar amount, all your clients want is a RETURN ON THEIR INVESTMENT.
I’ve had recruiters ask me if they should reduce their fees when a client gives them multiple openings. I have never reduced a fee for multiple openings, if anything I might offer some sort of reduction for multiple “HIRES” within a quarter. Multiple openings don’t ensure you will even make one placement!
The most important thing in fee negotiations is the level of confidence you present and you must believe that you are worth the fee you are charging! It’s also interesting to note that many times the same companies that negotiate their fees, turn into collection issues. Many of you are compensated based on “cash in” so it is vitally important that you put your efforts where you know you can get results and get paid!
Barb Bruno, CPC, CTS
