This article originally appeared in ShortList on 24 April 2012 1:00pm
Discount demands are a red flag: Clennett
Recruiters who win business by
agreeing to clients' requests for fee discounts might find in the end that those
clients are not worth having, says industry trainer and expert
Ross Clennett.
"Many years of recruitment experience tell me the clients who want the biggest
discounts are the hardest to please and also tend to be the biggest
time-wasters," Clennett told an RCSA webinar last week.
Difficult clients often made difficult employers, he added, which increased the
risk of candidates leaving within the three-month guarantee period.
Ironically, discounting could also harm the relationship with a client, he said.
"It makes your original fee like an ambit claim and therefore damages your trust
and credibility with your client.
"It's easy to drop the fee, but the client will be thinking, 'Well, were they
trying to shaft me in the first place?'"
Clennett said recruiters
needed to do their homework if they were to come out on top in a discounting
conversation.
"If you're tentative [or] if you're dreading negotiations, you will lose 19
times out of 20 because your fear and lack of preparation will be sensed by your
clients and they will take advantage of it," he said.
"[In negotiations] the most confident person wins and you won't be confident
unless you have rehearsed, role played, and practiced."
A common mistake was becoming defensive and attempting to justify the fee, when
in fact the client was the one who should explain why the cost was unreasonable
in the first place.
"If you are defending or justifying then you are losing," said Clennett.
He suggested asking the client a series of polite but assertive questions to
gain the front foot - what fees had they previously paid? What level of service
did they get for that? What price did they expect to pay now, and what service
did they expect for that price?
While discounting was generally something to steer
clear of, if unavoidable, the recruiter should always get something in return,
Clennett said.
For instance, he said, if the recruiter was reducing their fee, the client might
agree to a part payment upfront, a cancellation fee or a reduction in the
guarantee period.
A discount for multiple roles was also an option, but such a deal should be
clearly structured and agreed in writing � rather than a vague promise of future
work.
"Clients are like the thirsty alcoholic who will do anything to get a drink, and
when they're sober the next morning they can't remember what they've said or
what they've promised," Clennett said.
"Never negotiate away anything unless you get something worthwhile
now
in return - not in the future."
ShortList is the number one source of information for both corporate recruiters and recruitment companies.