The staffing and recruiting industry is a $130 billion market with search and recruiting revenues driving nearly $15 billion in 2014. Until now, the $15 billion of placements have largely been funded by two kinds of recruiting services: contingency and retained searches. In both cases the average fees associated with recruiting a candidate in the pharma or biotech industry ranges from 25% for contingency placements to 50% of a candidate’s first year’s salary, for a retained search.
Despite the disruptive forces of LinkedIn and the penetration of other competing employment platforms, recruiters continue to command the highest search fees for placements in these biotechnology-rich sectors. Will unbundling the recruiting process drive a new way of working with recruiters, to leverage their vital expertise but separate their capabilities from those of internal HR managers and hiring managers?
Can You Recruit a $100K Candidate for Just $6K
An employer can engage a Pay-Per-Candidate recruiter and execute a professional search for highly-skilled passive candidates at low rates. The low fee structure is possible by streamlining and unbundling the recruiting process into separate functions and eliminating overhead and conflicts of interests. Why pay an outside recruiter when much of the process can be handled more efficiently, with improved communication between candidate and employer, without the unintentional but inherent conflicts of interest?
The Pay-Per-Candidate solution empowers the human resources department and hiring managers to prioritize where they add the greatest value – assessing competencies and cultural fit, employee and labor relations, legal and risk management, compensation and benefits, and nurturing an effective working environment.