Recruitment as a Service (RaaS)
We are the only recruiter across Ireland and the UK that offers true Recruitment as a Service (RaaS).
In 2020, for consumers and businesses, the most common way to purchase important services is via an ‘As a Service’ model.
Let’s run through a few examples. A company that isn’t large enough to warrant an in-house legal counsel, will perhaps procure the services of external legal advisers, who will charge for their time based on an hourly rate plus expenses.
Companies that would not benefit from an internal finance department, will sometimes buy the services of 3rd party accountancy providers or similar. These providers will charge for their time either using billable hours or a pre-agreed time and materials service contract.
In fact, any professional consultancy services that businesses need, are routinely charge using a ‘pay as you go’ model or a fixed price based on the scope of work required and the time it will take to complete that work.
People are also used to the ‘As a Service’ model in their private lives too. The Physio, GP, Dentist, Personal Trainer, Music Teacher, Pilates Instructor etc, all charge what they think is a relative price for people to consume an hour of their services, roughly speaking. (Perhaps the GP and Dentist should be 30 mins, if even….)
Paying only for what you use is fast becoming the de facto approach for technology and professional business services in particular.
At Schwarz & Vogel, we believe that a simple ‘pay as you go’ model is now required for executive recruitment.
The high fees charged by other agencies are locking some businesses out of the recruitment market, which is having a negative impact on economic growth as they struggle to attract the people they need to move forward.
So how does it work?
Let’s imagine your business is looking for an IT Project Manager. We’ll assume that this IT PM will attract an annual salary of €55,000.
Within the recruitment industry today, a company looking for an IT PM via an agency, can expect to pay anywhere between 10 and 30 percent of that annual salary upon placement. In some cases there will be an additional placement fee, with the percentage of annual salary charge coming once the placed candidate has successfully completed their probation.
Let’s use a 20% charge for the calculation. €55,000 pa @ 20% = €11,000.
That €11,000 is chargeable no matter how long it took the recruitment consultant to find the right candidate. It may have taken them two days, it may have taken them a week. The company will pay that €11,000 fee irrespective of the time and effort it takes.
So how do we do it differently?
Because we offer Recruitment as a Service (RaaS), we only ever charge our clients for the work we actually do. We have completely removed the relationship between the recruitment fee and the annual salary of the role required. Why? Because there is no legitimate business or economic need for these two things to be connected.
When recruiting within the Tech industry it takes us an average of two days work to find the right candidate for the roles our clients need to fill. That’s based on the data we’ve collected regarding the candidates we have already placed for existing clients.
Using the IT PM role as an example again, if a company moved from the traditional recruitment pricing structure to our Recruitment as a Service model, they can expect to save anywhere between 50-60%.
Moving to a Recruitment as a Service model does two things. Firstly, it will introduce huge cost benefit to the business. Secondly, it will ensure that companies take the time to select the right agency, that can recruit effectively and quickly. Choosing an agency that lacks the required industry knowledge could lead to a long recruitment window and costs could spiral out of control.
Contact us today on +353 91 373911 for more information about our Recruitment as a Service offering.