Recruitment As A Service (#RaaS): Monthly vs Traditional Billing Methods

By Brian Pho | June 24, 2021 | Industry Trends

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Monthly billings vs traditional recruitment billing methods, what’s the difference? Have you ever questioned the traditional recruitment process that has existed for the past 15+ years. What about the candidate replacement guarantee that recruiters offer to ensure the candidate they place is suitable for the role? Have you (the employer) ever been satisfied when recruiters offer a candidate replacement guarantee? Have you experienced when a recruiter never delivers on a 2nd needle-in-the-haystack candidate and does not fulfil the guarantee? What about asking for a money back refund from the recruiter? Do you think you will ever receive the full refund?

I think its time to change the system. We need to see recruitment as a service (RaaS) based model rather than a commission based model. Below is what our manufacturing practice is doing to better assist employers to partner with us on your next search.

Recruitment As a Service: Monthly vs Traditional Billing Methods

Traditional Recruitment Billing Method

The traditional method of recruitment is for a recruiter to invoice a percentage of the candidate’s base salary and add a 90 day candidate replacement guarantee. If the candidate does not fulfill their obligation within a 90 day probationary period, the recruiter is obligated to re-fill the same position free of charge. This method has been used for years and it has never been questioned.

To me, the candidate replacement guarantee never made any sense.

Once a recruiter has successfully placed a candidate into his new role, the recruiter has no affect on what the candidate does within the corporation. Furthermore, we do invoice our full fee on the first day the candidate starts with a NET30 day payment schedule. This process is advantageous to the recruiter with very little upside to the customer.

Campbell Morden has decided to change this process.

Monthly Billing Direct Hire Process

You pay the recruitment fee for what you get

Campbell Morden’s monthly billing direct hire process gives more control to our customers and more validity to our services. Although our fees will be initially higher than the traditional method of recruitment billings, the recruitment fee will be split into 12 monthly payments. So if a candidate decides to leave the organization anytime within the 12 months, we will stop monthly invoicing our customers.

This gives more control to you and eliminates the need for candidate replacement guarantees. Or any credits related to the customer account by the recruiter.

With the addition of our temporary / contract payroll services last year and our direct hire monthly billing process, we give control back to you.  Giving these new options in recruitment fee billing is a radical shift in thinking in our industry. We will still honor our traditional method of recruitment billings if you choose that option. Campbell Morden wants to build a long term relationships with our customers and by become strategic partners that work together to find the best person for the job. Seeing Recruitment As A Service and using the monthly billing process will propel us into that new direction.

Recruitment As a Service: Monthly vs Traditional Billing Methods

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