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If you change nothing, nothing will change

Posted by: Jessica Wood on Thu 18 June 2015


If you change nothing, nothing will change

The financial advice world has undergone significant change in recent years, not least in how it charges for its services, moving away from the commission driven sales to a fee based services approach. Within my industry, recruitment, it’s still by and large a commission driven charging structure.

Rightly so there has been increasing feeling of resentment in the market place for being charged a percentage of salary to have a position filled. Largely because firms don’t feel as though they’re being charged fairly for the service. I agree as I feel it’s perceived to be a form of ‘commission’ rather than an actual service related fee.

Over recent years, we have offered our services based on either a percentage of salary or a fixed fee amount and have found the fixed fee option has become increasingly more popular. So I’m delighted to reveal we’re stepping completely away from charging on a percentage of salary basis and instead offer our clients a range of fixed fee options, dependent on the type of position and how our clients would prefer to engage with us.

I’m sure I’ll look back on this and wonder why we didn’t make a stronger move on this sooner, but at this moment, I’ll admit, doing something different is a little scary. When the standard is that most are charging on a contingency based commission structure, will the market place choose what’s designed to be a fairer charging structure for all?

My vision is to be able to work with all my clients on what we’ve termed our Engagement or Retained basis. However, realistically getting our clients onto an engaged basis will be a real win for both parties based on where the industry is right now. I’ve spoken about how I believe the recruitment industry is broken and what changes need to made to improve it, and it feels right to be able to deliver on just that.


So how does this all look?

The Engagement arrangement is best suited to using a recruiter you trust to act as an extension of your business, who will champion your company & employer brand, who take the time to fully understand your business, your culture & values and present the best people to help you achieve your company goals and assist in the growth of your business, a much more efficient & better controlled interview/hiring process all underpinned by the fact your initial investment ensures much more buy-in from the recruiter to fill your position.

  • An exclusive arrangement between you and Sandringham Wood - this ties us both into exclusivity for a specific time frame (exact time frame to be agreed at outset)
  • During the agreed time frame you agree not to appoint other recruitment consultancies
  • You’ll pay approx. a third of the fee upfront (please note once paid, this is non-refundable)
  • Only upon the successful placement of a candidate with you will the remaining two-thirds of the fee be payable; upon the candidate’s start date
  • Working on this basis enables us to offer you a considerable discount on the overall fee coupled with an even greater level of dedication and resource allocation; we will work in complete partnership to promote your employer brand to attract the best candidates, assist (if needed) with role profiles, help plan the hiring process from beginning to end in the most attractive, efficient and comprehensive way

Retained:
Very similar in style to the engagement arrangement, this arrangement is probably best suited to Senior Appointments; where more head-hunting maybe required, a greater need for discretion and commitment by both parties in terms of loyalty and end goal.

  • An exclusive, retained agreement between you and Sandringham Wood; we will be the only recruitment business engaged to source candidates for you. You agree not to accept CVs from any other recruitment consultancies
  • Any candidates put forward by us are ‘owned’ by you until the position has been filled or you have confirmed you do not wish to proceed with the candidate. During this time, we will not present these candidates for any other opportunities
  • This allows us to offer you a considerable discount on the overall fee and work in complete partnership with you to promote your employer brand in the most attractive and comprehensive way
  • Our fee is broken down into three payments at specific times throughout the process (commencement of the recruitment process, on shortlist and start date of the successful candidate.

Exclusive Contingency:
This arrangement is better suited to when you want to engage and build a more long-standing relationship with a recruiter as your business grows; who you have time to spend with to enable them to fully understand your business, your culture & values. In return, as the recruiter will not be in a ‘CV race’, you’ll benefit from a more dedicated service, tighter & better controlled interview/hiring process, better qualified candidates & commitment to fill your role.

  • An exclusive arrangement between you and Sandringham Wood – this ties us both into exclusivity for a specific time frame (exact time frame to be agreed at outset)
  • During the agreed time frame you agree not to appoint other recruitment consultancies
  • As with the Contingency option, our fee is payable upon the commencement of employment of a candidate sourced by Sandringham Wood
  • No fee is payable, for our service, if we are not successful in placing a candidate with you
  • This enables us to offer you a reduced fee with a greater level of commitment and resource allocation; assisting (if needed) with role profiles, market information and promotion of your employer brand.

Contingency:
This arrangement is probably more suited to lower-level or higher volume recruitment. You may believe the benefit is that you potentially have access to a wider talent-pool by using multiple recruiters; however, if the role is an important position to fill and you don’t have the time/resource to spend fully briefing all the recruiters you engage it may result it duplicate CVs, not so well matched candidates, a more protracted interview/hiring process (based on hiring manager/candidate availability and parties involved) potentially resulting in loss of candidates along the process and more costly overall in terms of management time.

  • Our fee is payable upon the commencement of employment of a candidate sourced by Sandringham Wood
  • You’re free to use other recruitment consultancies for the same role if you wish
  • All candidates presented will be briefed & pre-screened thoroughly, will have a genuine interest in your opportunity & will be well-prepared for interview
  • No fee is payable, for our service, if we are not successful in placing a candidate with you.

Just as many IFAs have tweaked and adjusted their fees and services, we will continue to look to offer what’s best. I’d personally love your thoughts on what we’re doing. Despite our hard work are we off the mark, or are we offering something the market wants?


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What others say...

I would like to thank Sandringham Wood for all their help during my search for employment. Everyone was extremely helpful and friendly. The information given to me prior to my interview was excellent and very useful.


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Sandringham Wood
54 Parrys Lane, Stoke Bishop
Bristol, BS9 1AQ

Sandringham Wood Recruitment Ltd is a company registered in England and Wales
(Reg No. 6822844) Registered Office: 54 Parrys Lane, Stoke Bishop, Bristol BS9 1AQ.

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