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Resumes/Hourly Pricing
(December 01, 2004)

Hourly Pricing: The Engineering Model
In some cases, employers hire so-called "Contract Recruiters", who are compensated by contract specification on an hourly basis. These companies also have been known to hire Resume research professionals. In these limited cases, Resumes can be acquired for an hourly rate. The circumstances are well known and understood within the industry. Standard contract language is used to describe the tasks involved.

Other than specific Contract arrangements, the hourly pricing model is virtually unheard of.

Interestingly, contract recruiters typically bill their services at $75/hour. When focused on Resume production, they have a relatively standard productivity of 2 Resumes per hour. It is reasonable to suggest that the contract approach, at its most generic, produces Resumes at a cost of $37.50 apiece.

Price In Executive Search
In the executive search process (more correctly called permanent placement), fees range from 20% (the low end, cited in our table) to 40% for extremely rare specialties.

Factors That Influence Price
As in any exchange of goods and services, a range of factors affect the price of what is actually delivered. Freshness, relevance, quality, and utility are all widely understood as factors that affect the price point of specific deliverable goods.

Time Sensitivity
Resumes age. As noted above, Within 6 months of the receipt of a Resume, there is a 100% likelihood that the credential information has changed. Active candidates take new jobs, and additional training is a component of most new employment settings. During that same time, there is a likelihood of 25% change in the contact information. 10% of all new employment involves a move. 15% of Americans have undergone an area code change during each six-month period during the past 4 years.

A Resume has its peak value at the moment it is received. Using it 6 months later involves verifying much of the information contained in the original product.

The value of a current Resume (all information is up to date) adds a $5 premium to the face value of the Resume as described in our matrix. Many services are commercially available that will update a Resume database for a fee of $5 per unit.

Knowing that a particular candidate is available for work at a certain time is worth its weight in gold. As the availability date approaches, the candidate is more willing to compromise on a range of compensation issues. Urgent requirements can be filled more quickly if there is a way to limit the recruiting phone calls to candidates who are readily available.

Current Salary
Knowledge of the candidate's current salary gives the Recruiter a solid advantage in negotiations. Current salary information helps a company keep its compensation costs under control.

Willingness To Relocate
Only 10% of all potential candidates are willing to relocate as a part of a job change. Knowing which candidates in a pool fit these criteria can reduce other recruiting costs by up to 90%.

- John Sumser © TwoColorHat. All Rights Reserved.


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Copyright © 2013 interbiznet. All rights reserved.
Materials written by John Sumser © TwoColorHat. All Rights Reserved.
Mill Valley, CA 94941

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