While most firms want to talk about anything but how much they are going to cost you, we prefer to present our business model right up front because we think it is part of what makes us unique. Frankly, we hope it unique enough to give you a reason to take a chance on RDC Talent!
RDC Talent will handle contingent searches for 20% of the successful candidate’s first year base salary. This is approximately 5% below the going rate. Our overhead and infrastructure is minimal and we can pass the savings through to you. Moreover, if you are willing to offer us exclusivity on searches, we are willing to offer even more competitive fees. Additionally, if you can offer us more than 10 positions in a six-month period, we are willing to offer more competitive fees. We would much rather do quite a bit of business with a few firms as opposed to a single search with many firms. We think this is far more efficient and effective for both of us. As with all contingent searches, we don’t deliver, you don’t pay.
RDC Talent offers you a “Personal Recruiting Department” which you can learn more about as you peruse our website. Basically, we will function as your private-label recruiting department, with dedicated representatives who will work transparently as members of your team. This is a flexible, scalable model that is far more efficient than building it yourself, especially for start-ups, high growth companies and also for companies that need to rapidly staff new locations or even ramp-up for seasonal hires. Fees are based on a monthly run rate and are dependent upon the number of resources required to meet your recruiting needs. Once we understand the scope and deliver the quote, you can compare the costs to hiring and tally up the savings. RDC Talent is willing to discuss these arrangements on a short or longer-term basis, as required.
This is where it really gets interesting. We think the retained search business is badly broken and the big firms operate like a monopoly in terms of fees and fee structures. Worse, it is a business that cares primarily about its own self-interest, not yours. Think about it. What does that partner at the big firm care about most? Your search? No! They care about getting your confirmation letter because that’s how they get paid! And what do they care about next? If you said “my search”, wrong again! They care about their next confirmation letter – from wherever it may come. That’s the dirty little secret of the commission-based compensation systems used by the top firms in the industry. Sure, they may tell you its “base and bonus” but make no mistake about it – it is direct drive sales commission and the only metric that matters is collecting confirmation letters. Sadly, it gets even worse. While they will tell you all about their quality surveys, the reality is, they may or may not even send you one and, if you take the time to complete it, no one really cares. Why? Because there is no quality or satisfaction measure in the compensation plans at the major firms. Here is another dirty little secret – it is widely known in the industry that something less than 70% of retained searches close successfully. That’s the truth and they could care less – they already got their money, typically within 90 days of signing the confirmation letter. As you can surmise, this leads to all sorts of bad outcomes and drives the transactional nature of the business we so desperately seek to avoid. Clients only matter when they have a search, candidates are treated like commodities, and you and your search suffer along with the junior team as the high-flying partner you hired slowly vanishes in pursuit of the next all-important confirmation letter. (not to mention, the typical “successful” partner has 15-25 searches on their plate at any given time!).
Here is what is different at RDC Talent:
- We staff and pay like a professional services firm. Base salaries are paid and are not recoverable. Bonuses are based on successful search completion, time to complete AND client and candidate satisfaction with our process.
- We developed a fee structure that aligns our interest with yours. We collect 25% of the retainer at search confirmation, 25% when you interview your first candidate(s), and the final 50% at placement or 180 days, whichever occurs first. You may cancel anytime after the first payment is collected and no further payment will be due. Also, because of our lower cost structure and limited infrastructure, our retainers are set far below the going industry rate. Call us to learn just how far below.