Holding a recruitment fee under pressure from a good client

3 days ago
3 min read

Updated: 2 days ago

Introduction

A client you have wanted for two years asks for a reduced percentage. The brief is attractive, the relationship could be worth a great deal, and the request is reasonable in tone. Every instinct says agree, and most recruiters do.

The arithmetic is unforgiving. Sourcing, screening, arranging interviews and managing an offer takes the same time at any percentage, so a discount comes entirely out of margin rather than out of a cost that scales. And the rate you agree becomes the rate for every subsequent brief from that client, and frequently for the desk.

Holding the fee is not stubbornness. It is recognising that the work does not shrink with the number. Saying that plainly is usually enough.

1. Holding a recruitment fee under pressure means having something to trade

Never concede for nothing.

Give the discount for exclusivity

An exclusive brief can be worked properly and has a far higher fill rate. That is a real exchange rather than a concession. Put the exclusivity period in writing.

Or for a retained or staged arrangement

An engagement fee, a shortlist fee, a completion fee. The client commits and you are paid for work rather than outcomes alone. Senior roles support this readily.

Or for volume, defined in advance

A lower rate above a stated number of hires in a period. Not for the promise of future work. Promises are not consideration.

2. Justify the fee with the process

Clients discount what looks like a database search.

Show what the work involves

Market mapping, approach, screening, referencing, offer management. Clients who see the process defend the fee themselves. Send a one-page summary with your terms.

Never lead with the percentage

Discuss the role, the market and the difficulty first. A rate quoted before any value is established will be negotiated. Let them explain the difficulty first.

3. Know which briefs are worth a discount at all

Some are not worth working at full rate.

Score the brief first

Exclusivity, realistic requirements, decision speed, whether they have hired before. A poor brief at a reduced rate is worse than no brief. Write the criteria down.

Be willing to decline politely

Declining raises how you are regarded and preserves capacity. Recruiters who never decline are treated accordingly. Suggest somebody better suited.

4. Protect the rate across the desk

One discount spreads.

Record the agreed rate and why

Exclusivity, volume, a specific circumstance. Without a reason on file, the discount becomes the standard. Note the date and the reason.

Review discounted clients annually

If the exclusivity stopped or the volume never arrived, the basis for the rate has gone. Say so. Return them to the standard rate.

5. Defend the fee after the placement too

Revenue leaks after the invoice.

Tighten rebate and guarantee terms

A generous rebate on a candidate the client mismanaged is a cost you cannot control. State the conditions precisely. Require the client to have run a proper process.

Invoice on start and chase on a schedule

Placement fees are frequently the last invoice a client pays. Terms, follow-up, escalation. Do not let it drift past ninety days.

Conclusion

The work does not shrink when the percentage does, so never concede for nothing: trade a discount for exclusivity, for a staged or retained arrangement, or for volume defined in advance rather than promised.

Justify the fee by showing the market mapping, screening and offer management involved, and never lead with the percentage before any value is established. Score briefs before deciding anything, because a poor brief at a reduced rate is worse than no brief, and decline politely when it fails. Record why any discount was agreed so it does not become your standard rate, review discounted clients annually, and tighten your rebate terms so you are not carrying somebody else's management failure.