# Introduction

1 Many people complain about the high cost of using Consultants in selecting staff.

2 Many Consultants charge a fixed fee of 15% (or much more) of the first year’s remuneration. These rates put people off using Consultants – particularly small to medium-sized Companies. One Manager stated that he had spent $65,000 in the previous twelve months on Consultants’ fees for obtaining staff. He could have saved 20% or more if he had used a different approach.

# Negotiate for Time-Basis Payment

3 One approach to saving money involves arranging for your Consultant/Agent* to work on a time basis. In this case, the following objectives apply – :

(a) Check whether you can link the fee with the time any Consultant you consider employing will spend on obtaining, assessing, and reporting on, Applicants (i.e. seek a rate-per-hour charge).

(b) Ask your Consultant – “How many hours did you spend on our last assignment.” What would you charge on a rate-per-hour basis?

4 Usually the total fee on a rate-per-hour basis of charging will amount to less than a fixed fee. However this point depends on the rate-per-hour charge.

# Decide the Work you can do

5 Once you have a rate-per-hour approach You can decide what you want to do and what you want the Consultant to do. Continue reading