16 October 2023 Commercial Innovation by a Recruiter, Really? In our interview with Shoaib Qureshi, discover how Hyerhub's unique pricing policies redefine hiring with fairness, transparency, and expert support. Hyerhub Resourcing Interview Give an overview of Hyerhub's unique commercial approach to hiring fees and pricingAt Hyerhub, our approach to hiring fees and pricing is rooted in fairness and transparency. With backgrounds as both consultants and hiring professionals, we prioritise trust-building among all parties.Unlike the industry norm, we're dedicated to maintaining a fair and transparent margin. This builds loyalty and trust, which in the long-term we believe is more valuable than short-term profit maximisation. Our unique approach may differ from others, but it aligns with our values and the work environments we've known. Rather than focusing on maximising profits, we're convinced that by earning the loyalty and trust of our clients and consultants, we not only secure valuable referrals and recommendations, but also build enduring partnerships.What challenges or pain points in traditional recruitment led to the development of this approachThe origin of our approach can be traced back to the days when we were all either contracting or working as hiring managers at end clients. Recruiters will often push both the contractor and the client on the commercial terms so they can make as big a margin as possible. If and when the contractor finds out how much of the clients spend is going to them and how much is going to the recruiter its safe to say that is usually the beginning of the end of the relationship. More recently, the challenges posed by government regulations like IR35 should have pushed recruiters and contractors to become more creative and more consultative, but that hasn’t happened. Traditional pricing models often fail to cater to the needs of a true consultant, someone who frequently juggles multiple clients and projects, engages in diverse project work, and seldom commits to year-long roles doing 9-5 every day of the working week.Rather than sticking to a rigid day or hourly rate, we believe milestone based contracting can be a useful alternative, where the model involves agreeing fixed sum payments for each milestone achieved. This approach has proven successful with various clients, from large corporations to medium-sized companies, particularly when consultants have full control over deliverables. While it may not be suitable in all scenarios, it aligns well with IR35 requirements, enhances quality control for clients, and incentivises consultants to work efficiently. By sharing the risk with our clients, we want to transform the contracting landscape.How does Hyerhub's permanent placement pricing model differ from traditional recruitment agenciesWe offer a novel initiative for permanent hires. Instead of burdening clients with a substantial one-time fee upon placement, we offer the flexibility to spread the payment over 6 to 12 months, contingent on terms. This not only eases cash flow for companies but also provides a safety net: if the hire doesn't work out within the agreed term, we won't seek to collect any remaining fees. It's all about risk-sharing and ensuring client satisfaction.What are the key advantages of Hyerhub's pricing model for clients looking to hire talentHyerhub's pricing model offers clients several key advantages when it comes to hiring talent. First and foremost, our fairer pricing model helps clients to allocate their budget more effectively, providing consultants with better rates than with an agency and ensuring that clients get the very best consultant for their budget.Reducing the risk of consultants seeking higher-paying opportunities elsewhere is another benefit for our clients. Our milestone-based approach enhances quality control, ensuring that clients only pay for productive milestones achieved, eliminating costs associated with non-productive days too.And our approach to permanent placement fees involves spreading payments over 12 months, offering clients a safety net. With our lower margins, more of the budget flows to the consultant, ultimately attracting higher-quality candidates. Hyerhub's unique pricing model is designed to empower clients with cost-effective, quality-focused solutions for their talent acquisition needs.Check back in for part 2 of this interview later this week where we look into how Hyerhub is using tech to help achieve our commercial goals.Get in touch to learn more
