Pay-per-hire recruitment is a model of recruitment that allows companies to only pay for the hires they make rather than incurring a large fee for the recruitment process. This model is becoming increasingly popular among companies of all sizes as it provides a more flexible and cost-effective solution for their recruitment needs.
What is Pay-Per-Hire?
The pay-per-hire model provides several benefits to companies, and it can be particularly useful for businesses with fluctuating recruitment needs or limited recruitment budgets.
In this model, a recruitment agency provides its services to a company for a fee that is only payable if the company makes a successful hire. This means that the company only pays for the hires that it makes and does not incur any costs for unsuccessful hires. This is a cost-effective solution for companies, especially for those that may only need to make a few hires per year.
Benefits of Pay-Per-Hire Benefits
One of the most significant benefits of the pay-per-hire recruitment model is that it doesn’t require companies to pay a large upfront fee for the recruitment process.
This allows companies to have better control of their recruitment costs as they can choose to only engage in recruitment activities when they need to, without incurring additional costs.
In return, the recruitment agency takes on the responsibility of finding suitable candidates, and they handle all aspects of the recruitment process, including:
- Advertising the role
- Sourcing candidates
- Conducting initial interviews
- Presenting a shortlist of candidates to the company
The benefits of pay-per-hire allow companies to focus more on their core business activities as they don’t have to invest so much time and resources in the recruitment process.
Pay-per-hire recruitment also allows companies to work with a specialist recruitment agency that has a deep understanding of their industry and can provide tailored solutions to meet their specific recruitment needs. As a result, the recruitment process is more efficient and effective, and the company is more likely to make a successful hire.
Who Needs Pay-per-Hire Recruitment?
The pay-per-hire model is suitable for a wide range of businesses, including small and medium-sized enterprises, as well as large corporations. It is particularly beneficial for businesses that:
- Have fluctuating recruitment needs – Companies that only need to make a few hires per year can benefit from the pay-per-hire model as they are only paying for the hires they make and not incurring any costs for unsuccessful hires.
- Have limited recruitment budgets – The pay-per-hire model allows companies to control their recruitment costs, and they are not required to pay a large upfront fee for the recruitment process.
- Want to focus on their core business activities – By outsourcing the recruitment process to a specialist recruitment agency, companies can focus on their core business activities and not have to invest time and resources in the recruitment process.
How Much Does Pay-Per-Hire Cost?
One of the biggest benefits of pay-per-hire as a recruitment model is that it decreases the initial cash burnout by dividing the recruitment services costs into six equal monthly fees. Pay-per-hire includes paying 14% of the new hire’s gross annual salary in two installments. These installments are payable twice per year.
In conclusion, pay-per-hire recruitment is a cost-effective and flexible solution for companies that are looking for new hires. Pay-per-hire provides an opportunity to work with a specialist recruitment agency to meet their specific recruitment needs and save time and money on the recruitment process. Thanks to these benefits, this model is becoming increasingly popular among companies, and it is expected to continue to grow in popularity.
