- Cost and cash flow impact of professional recruitment fees
- Hidden cost of DIY recruitment using job boards
- Burgeoning on-costs
- Balance sheet impact
- Complexity and cost of dismissing underperforming staff
We live in an age of disruption where businesses are required to invest and adapt to new products, services and processes on an almost-daily basis.
But no matter how fast things change, one central business requirement remains the same: the need for cash flow.
At a consumer level, these divergent needs have seen the rapid and widespread adoption of 'Buy now, pay later' services like Zip and AfterPay.
However, when it comes to business, ‘Buy now, pay later’ is yet to gain traction as a way of overcoming the funding constraints that every business faces from time-to-time, no matter how well planned and run.
One such cause of cash flow pressure is the un-budgeted cost of recruiting new staff. Depending on the impact of your cash reserves and the way your business hires new staff the impact of this can range from moderate to severe.
Blended - a Hybrid of Both
Whilst every industry is affected by the key hiring challenges detailed above, they are particularly evident in industries where rapid change and skill-shortages fuel competition for experts with high-demand skill sets, and where businesses that are growing rapidly need to recruit high paid resources that they cannot afford.
Driven largely by a desire to avoid the cash flow impact of the fees charged by professional recruitment agencies, over the course of the last 10 years, SEEK and other online job boards have become the favoured method of recruitment for most Australian SMEs.
Whilst many of these companies still use professional recruitment firms to help them find and recruit senior staff (reporting directly to the CEO), they use online job boards to fill most other positions. And many are paying a high price in terms of higher staff turnover, lower staff retention rates and an increasing incidence of bad hires.
Whilst some business owners and leaders are happy to accept this as the price you pay for saving tens or hundreds of thousands of dollars a year in recruitment fees, others are starting to question the wisdom of taking a penny-wise / pound-foolish approach to improving the most valuable asset in their business. Their people..
To investigate the true cost benefit of in-house recruitment we built a financial model that compares the true cost of inhouse recruitment and compares this to paying a typical recruitment agency fee of 15%.
In the example below, we apply this model to the recruitment of a senior salesperson on an $80,000 package.
The results might surprise …
|The expense details||In-house cost||Recruitment agency fee (15%)|
|Probability of a Bad Hire||40%||20%|
|6 Month Replacement Guarantee||No||Yes|
The easiest 'Pay Later' solutions for every part of the hiring process.
HirePay is a technology platform that solves cash flow issues associated with the hiring process. Our innovative financial products make HirePay the easiest way to grow your business.
Our frictionless, transparent & affordable solutions enable:
In the current business environment, the cash flow burden of paying professional recruitment fees is causing many businesses to try ‘’going it alone’’.
For the employer, the result is often a significant amount of wasted time, effort and some very substantial hidden costs associated with bad or sub-optimal hires. Whilst recruiters are forced to offer discounts to entice companies to engage their services. It’s a lose-lose situation for both parties.
HirePay was founded to help businesses hire better people by enabling them to use professional recruiters and pay their invoices in 6 easy monthly instalments (HirePay pay recruiters in full within 24 hours).
Fill out the registration form in 2 minutes
Preview the instalment amounts when paying an invoice over 3 or 6 months and choose the plan you prefer.
Sign the HirePay contract online and submit your recruiter's invoice, which will be paid in full within 24 hours.
Nominate an account for direct debit
Pay your recruiter's invoice in 3 or 6 easy monthly instalments*
To unlock business growth potential by improving the quality of the people engaged. Better people ... Better results!
To provide innovative funding tools that make it easier and more affordable for businesses to recruit the best available staff, consultants and contractors.
“HirePay has been nothing but amazing. Lisa, our superstar account manager, has been so helpful and quick to respond! They really are on your team! David, the CEO, has been nothing but extremely helpful and understanding during these tough times. They genuinely want to help you out and do everything in their power to do so! Highly recommended and will ALWAYS be my first go-to for quick funding.”
William Du Co-founder, Short Story
“We were recently introduced to HirePay and offered their instalment payment option to a small number of clients as a test. It proved to be quick, simple and popular with our clients, so we quickly rolled it out and now offer HirePay on all our invoices to all our clients. They also eliminated the problem of collections from a difficult client for us. I’ve recommended other agencies to HirePay and don’t see why anyone wouldn’t offer it to clients- lots of benefits and no downside."
Adam Weraksa MD, W Talent
HirePay does not invalidate the contractual agreement between the recruiter and the employer, replacement guarantees will be administered on a case by case basis.
You can choose to spread the payments over 3 or 6 months to suit your cashflow requirements
Just fill up a simple online application form and receive approval in seconds.
Each monthly instalment is inclusive of a small HirePay fee charged to the Employer. Fees are calculated on a case-by-case basis and can be as low as 0.65-1.3% of the candidate’s salary spread across the monthly instalments.
In the event of a non-payment, HirePay collects from the Employer.