When organisations rely on traditional recruitment agencies and executive search businesses to assist them in making key hires, they often face a significant financial burden that extends beyond the visible placement fees. Agencies and search businesses typically charge between 15-30% of the first year's salary for each placement, creating a substantial cost centre for organisations with ongoing hiring needs.
Our analysis of 150 mid-market companies revealed that those using traditional recruitment methods spent an average of £87,500 per year on placement fees alone for mid-to-senior level hires. This figure does not account for the additional hidden costs, including time spent managing multiple agency relationships, inconsistent candidate quality, etc.
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At Talent Insight Group, we have reimagined talent acquisition and hiring to deliver exceptional results without the prohibitive cost structure of placement fees. Our cost-effective recruitment solution - Talent Search - operates on a fixed-fee model, based on the work conducted rather than a percentage of salary.
This transparent approach provides several financial advantages:
Each Talent Search project begins with a comprehensive scope and a clearly defined fee structure. This allows for precise budget allocation and eliminates the uncertainty associated with percentage-based recruitment models.
Unlike traditional agencies that charge for each individual placement, our Talent Search model delivers a comprehensive market mapping and candidate pool that can be leveraged for multiple hires, both in the immediacy and in the future. This approach reduces the effective cost-per-hire by up to c65% when filling multiple positions from a single search.
Our model completely eliminates the concept of placement fees. Once we have conducted the search and presented qualified candidates, there are no additional charges when you decide to hire (be it ‘now’ or in the future). This creates a predictable cost structure that aligns with planned recruitment budgets.
A leading financial services firm previously spent £145,000 annually on recruitment agency fees whilst struggling to fill certain specialised roles. After transitioning to our Talent Search model, they filled eight roles across 18 months at a total cost of £75,000—representing a c50% reduction in recruitment spend.
The firm's Finance Director noted: "Beyond the direct cost savings, the quality of candidates has been consistently higher, and the market intelligence gathered during the search process has informed our overall talent strategy."
The benefits of our approach extends beyond immediate savings. By providing comprehensive market mapping and competitor intelligence as part of our Talent Search service, organisations gain insights that inform their broader talent strategy.
These insights often lead to:
For organisations committed to building sustainable talent pipelines as well as making immediate hires, our Talent Search solution delivers both immediate savings and long-term strategic value, transforming Talent Acquisition from a reactive cost centre to a strategic investment in organisational capability.
To discover how our approach could reduce your recruitment costs while improving outcomes, contact our team for a personalised analysis of your current recruitment spend and potential savings.