How You Can Overcome the Placement Fee Objection
“There isn’t any money in the budget.”
“We’re under a hiring freeze right now.”
How many times have you heard a fee objection like the two listed above? Or this one: “We’d love to use you, but we just can’t afford the placement fee right now.”
It doesn’t matter in what kind of economy you find yourself. It could be a good one, a bad one, or a lukewarm one. Chances are that you’ll hear “No” to a direct hire more than you’d like. (Actually, any more than once is probably more than you’d like.)
Fee objection misdirection
But there is another option you could consider that helps the client and is easier on the budget: a contract-to-direct hire solution. This allows the client to get the skill set they need and “try out” the candidate.
With this option, your client will pay the placement fee over time rather than in one lump sum. In a contract-to-direct hire situation, the placement fee can be part of the weekly invoice. Consequently, the fee is paid in small increments over time instead of one large, lump sum payout.
Using the contract-to-direct option helps many recruiters overcome the placement fee objection.
That’s because a contract-to-direct situation is an audition. It’s an audition for both the candidate AND the company. That way, they can determine if they meet each other’s needs before they make the direct hire commitment. By providing the contract-to-direct option to your clients and candidates, you can help both parties make a decision they can feel good about.
But if you’re going to use this technique, you may want to use a contract staffing back-office to employ the candidates during their contract period.
Otherwise, YOU will be responsible for payroll funding and processing, Workers’ Compensation, unemployment benefits, invoicing and collections, etc. A contract staffing back-office can handle all of those tasks for you so that you can concentrate on closing your next placement!
For more information, call Top Echelon Contracting at 888.627.3678. You can also download our “Quick-Start Guide to Contract Staffing.”
This guide is designed to help you “hit the ground running” so you can make contract placements as soon as possible!