PARTNERING PLAN PROGRAM OVERVIEW
We are pleased to offer your company this program which is designed to do the following;
- Cut your net recruiting costs considerably, and allow you to defer some of them for a period of time so that you can make sure that a recruited employee is going to actually work out in the position they were hired for.
- Remove risk of investment in a recruited employee that just does not stay around.
This program was designed in the spirit of “partnership”. Our goal is to align ourselves with select companies who are growing rapidly, who need to conserve capital (and who seek to invest more into their employees and less into the recruitment process in the short term), and to tie our fate to our clients by producing employees that remain employed with those companies.
Below are the features and terms of this plan. In order to qualify for these terms, all points must be met on each placement. Otherwise, our standard service rates apply, and are to be paid on our usual NET-15 terms. No exceptions.
If you can comply with this plan, you will save a LOT of money.
FEATURES & TERMS OF THIS PLAN
PART ONE – BASE RATES & TERMS
POINT 1 – ON EACH PLACEMENT OUR COMPANY COMPLETES WITH YOURS; OUR SERVICE RATE WILL BE 15% OF FIRST YEAR’S PROBABLE INCOME FOR EACH EMPLOYEE WE PLACE. “Probable income” is defined as 1 – their salary or draws, 2 – any commissions expecting to be paid (at “plan”), and, 3 – any planned, anticipated bonuses. This is typically the number that the recruiter employee thinks is their likely first year compensation. We do not include relocation bonuses, stock option values, or other signing bonuses that you offer to attract talent.
For example. Let’s say we are placing a sales person with a $50,000 salary, plan commission of $50,000, and an anticipate annual bonus of $25,000, would give us at first year probable income of $125,000 and our fee earned would be $18,750.
If you deal with recruiting firms that charge more, then compare the savings….
Another firms standard rates of 20% would yield a placement fee of $25,000.
We will have saved you $6,250!
If their standard rates were 25% would yield a placement fee of $31,250.
We will have saved you $12,500!
If their standard rates were 30% would yield a placement fee of $37,500.
We will have saved you $18,750!
POINT 2 – TWO WEEKS PRIOR TO A PLACED EMPLOYEES START DATE, TEA WILL INVOICE YOU HALF (1/2 THE TOTAL PLACEMENT FEE). In the above example, that would be $9,350. We invoice two weeks prior to the start date, so that you can have the placement fee paid on the employee’s start date.
POINT 3 – YOU PAY NOTHING ELSE ON THIS PLACEMENT UNTIL THEY REACH THEIR 90 DAY MARK . Two weeks prior to a placed employee’s 90 day mark, we will invoice your company the remaining half ($9,350) with NET-15 terms, to be paid by the 90 day mark.
For example, one of our placements begins on January 1st of 2014. On March 15th, we will bill you the remaining have of your placement fee, provided that they made it through their initial 90 days.
POINT 4 – IF FOR ANY REASON A RECRUITED EMPLOYEE DOES NOT REMAIN EMPLOYED PAST THEIR 90 DAY MARK, YOU SIMPLY DO NOT PAY THE SECOND HALF OF YOUR PLACEMENT FEE. This limits your risk to the first half of the placement fee… which was 7.5% (half of the 15% total placement fee. Get it?) If they did not work out, quit, die, or anything other than being laid off, then you simply do not owe anything else. Do you get the beauty here? 15% if we recruit an excellent candidate that you decide to keep, and yet, if something goes wrong, you have only spent 7.5%.
However, if you do have cuts or layoffs, the second half of the fee became due and is to have been paid upon date of lay off.
This cost structure also puts us on the same side of the table. We have to really deliver excellent employees that work out for you, or our income is cut in half. Right?
PART TWO – ADDITIONAL DISCOUNTS AND TERMS MAKE THIS EVEN A BETTER RELATIONSHIP
“QUICK PAY” DISCOUNT – We will also extend our normal “Quick Pay” Discount on all invoices as we do all our other clients, meaning that, if you do in fact, pay your invoice on time as expected (Payment 1 on candidate start date, payment 2 on employee 90 day mark) then you may take an addition 5% off of your invoice amount. In other words, just to use round numbers as an example, if the invoice was for $10,000, then you would be due a 5% ($500) discount, bringing the net due on the invoice, to $9,500 if the payment is post-marked on or before due date.
“QUICK TO FILL. QUICK TO BILL DISCOUNT” – Now, on occasion, we may also fill a position very quickly, because or various circumstances (unemployment at time of offer, less needed search time, etc). On those occasions, if we begin a candidate in their new position within your company within 30 calendar days from the day that we took on the position, you will be eligible for a “Quick to Fill. Quick to Bill” Discount.”
For more information on our “Quick to Fill. Quick to Bill” and “Quick Pay” Discounts, go HERE!
PART THREE – WE WILL SET A CAP ON ALL INVOICES
“INVOICE CAP” – We will never invoice you more than $9,000 for any one invoice. Let’s say we place a high salaried position; like a CXO, and their first year probably compensation is $200,000.
Our rate of 15% would generate a fee for service of $30,000. Get that?
We would then split the $30,000 into two payments of $15,000. One now, and one on the recruited employees 90 day mark. BUT WAIT… Each of those payments exceed $9,000. So, again, if you pay on time, on their start date and 90 day mark, then we will accept payments of $9,000 each with nothing else due.
We just cut our own rate by $12,000. We will NEVER accept payments in excess of $9,000.
So, our end recruitment fee was really just $18,000 on this $200,000 position or 9% net recruitment cost, spread over a year. How does it get any better than that?
COMMITMENTS FROM CLIENT
In order to qualify for this program, the client needs to agree to the following points as well.
POINT 5 – WE HAVE TO HAVE ACCESS TO THE ACTUAL HIRING MANAGERS FOR A POSITION - For national companies, this agreement will cover all branches, offices, territories. We will, together structure a logistical method that makes since for both the client and TEA. While we are happy to work with your human resources department, and understand the importance of their function, when it comes to taking new orders from your company, we HAVE to have access to the actual hiring manager. No one understands their needs better than they do. Without access to the hiring manager, experience has shown us that in a large portion of searches, we just cannot be truly successful. We are happy to include the HR department in all communications.
SUMMARY OF FEATURES & TERMS
This program was developed by all the “best practices” in the recruiting industry. In many cases, this kind of program may not be needed (especially for companies that have no real “time urgency” to their recruiting.
The whole idea is that we want to offer our partners, the opportunity to cut their recruitment costs way back as they grow rapidly.
WE BEGIN WITH A REALLY LOW SERVICE RATE OF 15% – Split the payment into two pieces, bill one of them to be paid on start date, and the other 90 days later. If the client pays as agreed, then their net recruitment cost is 14.25% (After discounts)
And, add to that the fact that we will never, under this agreement, accept more than $9,000 per payment, for a total cost of $18,000, which offers you excellent protections from run away recruiting costs associated with high salary positions.
In order to receive these rates, all invoices must be paid according to these terms regardless, anyways. Invoices not paid on start/anniversary dates will incur a late charge of 1 1/2% of invoice amount per month.
We will guarantee these rates and terms for a period of one year from the date we entered into agreement. Other plans are available and we are happy to structure a plan that meets your needs.
For more information, contact us at (859) 533-5195 or email Todd Oldfield, our founder at email@example.com