BYO TOBs 📑

Admittedly, I’m a little fuzzy. The changing of the seasons has caught me off guard, and I’m officially under the weather. It’s lucky I am self-employed because I don’t think there’s an employer in the land that would’ve believed I was sick on the same day Liverpool won the Premier League. I was actually pretty bold, I booked flights back to Liverpool for the final day after the Leicester game a few weeks ago. I kept it to myself through some sense of superstition and to avoid any potential egg on my face if, by some cruel twist of fate, 1 point wasn’t gained over the last 5 games. Thankfully, the Arne Slot Machine paid out, and the Reds claimed their 20th Premier League Title. I bring this up because the blog topic this week is about money and risk, as you can imagine, last-minute flights to the UK cost a bomb. This isn’t a flex as much as a confession that I am now fully skint, but who isn’t? Everyone is looking to cut costs where they can. I’m sure, like me, you consultants will be encountering that delightful question – “Is there anything you can do about your fee?”

Of course, it isn’t just the fee. Spending money on recruitment these days seems to be a perceived risk, so everyone is looking to alleviate that risk somehow. The four horsemen of terms negotiation ride pale steeds, going by the names: Payment Terms, Guarantee Period, Candidate Ownership, and finally, Rates. Your clients will see these as areas in which there’s room to wiggle, where they can amplify that bang for their buck. Let’s start with the least offensive: Payment Terms. When asked to split a payment over two months, I’m more than happy to oblige. Every business has to deal with cash flow, and if I can make someone else’s life a bit easier, it’s not a problem. Saying that, I no longer have a threshold. Picture this, you make a big placement and earn yourself a mid-20s fee. If you have nothing else for next month and that’s split, you won’t see a cent in comms. That’s hardly a concern to your client, and your manager will have a quick solution: make more placements. Some businesses prefer a specific date in the following month. Again, it’s worth noting as it could potentially hit you in the pocket, but it’s no biggie.

Sliding up the scale, we have the Guarantee Period. 12 weeks, 90 days, 3 months, however you want to cut it. It’s in line with the government standard for probationary period and is considered a fair amount of time to assess if someone is the right fit. Recruiters can be apprehensive about altering this, because they have very little control over what happens once the person starts. A change in reporting lines, a disagreement with an opinionated colleague, a dispute over the correct temperature of the AC. All can make for a disgruntled employee, and none of which is the recruiter's fault, but they will cop it. Extending the period increases the chance of any number of extenuating circumstances occurring. Of course, if the guy or girl turns out to be a Charleton, then it makes sense that the client is protected, but surely that would’ve been flagged in the interview or the first 11 weeks. It's a topic a whole blog could be on, but it really depends on which side of the fence you’re on.

Candidate Ownership is a close cousin of Guarantee Period. If this were a game, they would probably be the boss fight before the big boss, where one was small and fast, and the other was large and packed a punch. Candidate Ownership is a curious concept. Realistically, how long does an introduction last? The industry standard is a year, but some people feel that is too long to have dibs. I think it’s because a year is a long time; you can be forgiven for forgetting someone was represented. But, 11 months is also a long time, as is 9, but is 6? I think it really comes down to trust. Trust that the client won’t be lying in wait to send a DM one day after the agreed time. Like the trust they put in you to find a candidate who can do the job, operate with integrity, and fit into the team. Personally, I’m open to a conversation about it. The dialogue often offers more insight into the nature and intention of the relationship.  

Finally, the big boss, Rates. What percentage do you feel is fair? It’s a delicate conversation because it’s essentially haggling. You wouldn’t go into H&M and ask for a tenner off. However, Khaosan Rd is littered with Europeans driving down the price of a Chang singlet. Again, there are nuances to the conversation. AOG used to make sense, you worked at a lower rate because you got heaps of roles. There must be give and take for a reduction, either there’s a glut of roles on offer or there's exclusivity promised. Otherwise, you’re just chancing your arm. My old boss, tattooed, big head, drives a three-wheel motor bike; he used to glare at me when I got my loyalty stamp from the independent coffee shop we’d frequent. After a few years, I have to concede, his contempt was 100% justified. He was empathising with a fellow small business owner. Knowing what we know about fast fashion, the quality of product between Mr Suwannathat's singlet and A high street retailer's tee isn’t worlds apart. I think there’s a time and place for haggling, and it should be done with a measure of perspective for who's behind the counter.