I am working on a college project where I set up a small company and need to hire 50 employees. Quotes I received from recruiting and hiring agencies are a bit too much for our budget. How can we negotiate? Thanks.
closed as primarily opinion-based by The Wandering Dev Manager, JasonJ, IDrinkandIKnowThings, gnat, Chris E Nov 29 '16 at 21:22
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As you mentioned, this is a college project and not a real-life example. This means every single element should be challenged.
You do not have the budget. This part is straightforward. You can ask the agency if they can lower their price, the answer will most likely be no.
The agency is asking too much. As this is a college simulation in my understanding, there is a good chance that asking "can we change agencies?" will be met with "you can find the same service 5-10% lower with Agency XYZ".
We need to recruit 50 employees. Does it have to be 50 ? Wouldn't 45 or even 40 do the trick ? You only specified in the question that you need 50, but this should be challenged. In addition to that, 50 induces a threshold effect in several countries, so going from 49 to 50 employees can be extremely costly.
We need to recruit 50 employees. Do you need employees, or can you add some interns in the mix ? Their cost will be cheaper, but they can still realise most tasks.
Your entire project probably has more things which should be challenged, this answer only answered the elements you identified.
I think you are vastly underestimating the value that hiring through an agency can give to your organization. They charge high fees because a lot of prospective placements actually fall through the cracks. The recruiters' time isn't free, nor the account managers', nor the fancy office you expect to go visit them in, or the time of the custodian who cleans them. Agencies have expenditures for phone, internet, advertising, and everything else you'd find in a service business.
Again, given that many like yourself will have an agency running like a chicken with its head cut off to fill a position, and THEN decide later that you don't really need the position filled -- how do you expect the agencies to stay afloat if you're trying to be cheap? There's a point where they can't negotiate AND stay in business.
If cheap is your motivation, try Craigslist. But you'll get what you pay for.
How can we negotiate? Thanks.
First, you google for the word "negotiation" and you educate yourself as to what "negotiation" is and how the negotiation process works. Seriously.
Second, you say that you want to negotiate. WHAT do you have to offer? A negotiation is a trade. If you have nothing to offer, then you have nothing to trade. And if you have nothing to trade, then you have nothing to negotiate with. If you have nothing to negotiate with, then you are wasting everyone's time.
Recruiters usually ask for two months of an employee's salary. It's clear that you can't afford to pay two months of an employee's salary let alone 12 months of an employee's salary. Let's assume that you somehow managed to get the recruiters to work for free, how do you intend to pay your 50 employees? It doesn't look like you have thought things through.