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Writer's pictureNicolas Revol

Success-based Recruitment or fixed price Sourcing?



In the competitive world of recruitment, it's essential to understand the different strategies available to attract top talent.

Today, we will explore two popular methods: success-based recruitment and sourcing missions.

Each has its advantages and disadvantages, and the choice will depend on your specific needs.


Of course, there are other modes of working with recruitment partners (RPO, temp, try & hire, etc.) but we will not cover them here!

 


1. Success-based Recruitment ✍️


This method is often preferred by companies looking to minimize financial risks and for a specific and urgent recruitment need.

You only pay when you hire a candidate proposed by the recruitment firm.


However, the cost can be significant, reaching 20 to 30% of the candidate's annual gross salary.


 

✅ Advantages :

  • 💶 Reduced financial risk: You only pay if a candidate is hired (at Source to Match, to ensure that both the recruiter and the client are truly invested in this search, we charge a part of the fees at the start of the mission).

  • 🔍 Specialized expertise: Recruitment firms are often specialized in certain sectors or types of positions, offering valuable expertise.

  • Guarantee: Often, recruitment firms offer a guarantee clause (either reimbursement or replacement under conditions).

 

❌ Disadvantages:

  • High cost: The fees can be substantial (20% on an €80,000 salary is still €16,000).

  • Less control over the process: The recruitment firm acts independently and does not (most often) use your brand during headhunting. You remain in control of your hiring process, but the firm is not in contact with your Hiring Managers.

  • Dependency: If a candidate previously presented is hired later, fees may apply (under condition but generally if you hire a candidate presented by a firm within 6 to 12 months, the firm is entitled to send you an invoice).

 


2. Sourcing Mission 🕵️‍♂️

 

The sourcer's mission, over a defined period (for us, it's 1 month with iterative 1-week sprints), is to provide you with a list of people who are interested, qualified, and available to become candidates for your company.

Your Talent Acquisition team then takes over the recruitment process.



This option is ideal for companies wanting more direct control over the recruitment process and looking to build a candidate pool for future needs.

And it's ideal for your talent acquisition partner to talk about you openly (and we know how much candidates hate being approached with phrases like:

"I'm recruiting for my client, a market leader in such-and-such...")


 

✅ Advantages :


  • 💶 Fixed cost: You pay a flat rate, regardless of the outcome (and often cheaper than success-based recruitment).

  • Strengthening employer brand: The sourcer acts as an extension of your brand, improving your image among potential candidates.

  • 🤸‍♂️Flexibility: Suitable for recurring recruitment needs (you leave with a list of qualified, interested, and available profiles, and there is no restriction on the number of recruitments you do...).

  • Also, you remain in control of the timing for your hires.

 

❌ Disadvantages:


  • No guarantee of success: You pay even if no candidate is hired.

  • Internal management required: Your team remains in charge of the selection and integration process.

 



Your choice between these two methods will depend on several factors: your budget, the frequency of your recruitment needs, the level of control desired over the process, and the importance of employer branding in your recruitment strategy.


If you prioritize reduced financial risk with specialized expertise, success-based recruitment might be the way to go.


On the other hand, if you're looking to strengthen your employer brand and build a talent pool for the future, the sourcing mission is probably your best option.

 



At Source To Match, we offer both approaches but only propose the one that seems most suited to our clients' needs.

As recruiters, our role is to guide our clients towards the strategy that best meets their specific needs.


And what better way to guide a client than an article that simply explains the different approaches? 😊


 

Looking forward to discussing this with you in 2024.


Nicolas.

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