Harrison McMillan’s alternative approach to taking on temporary employees on permanently has been recognised by Shortlist as a way to reduce our client’s recruitment agency spend, hire top talent and offer greater value than our competitors.
The fact that we don’t charge a buy-out fee if you take one of our contractors on permanently after 6 weeks, is a major differentiator for Harrison McMillan. We feel that this creates a strong relationship with both our clients and candidates and allows them to obtain great support and talent when they need it.
Our Director and Co-Founder, Jodi Walton, recently sat down with Shortlist, who are known as a premier source of independent recruitment news and provide in-depth analysis and insights all free from bias, to talk about our alternative recruitment model. Take a look at the excerpt below to see how the conversation unfolded.
Alternative temp-to-perm model helps quadruple revenue
Electing not to charge temp-to-perm fees for most conversions has helped an award-winning recruitment business attract more clients and significantly boost its contracting revenue.
Harrison McMillan co-founder Jodi Walton says her company only charges temp-to-perm fees in the first six weeks of a temp engagement, noting that after that point an agency has generally recouped its costs. (Within the first six weeks of a contractor engagement, clients are usually charged a flat fee of $2.5k.)
Traditional agency models, where a temp-to-perm fee is payable for up to 12 months, “definitely do not lend to a trusted partner relationship”, Walton says.
And this approach has helped Harrison McMillan quadruple its professional services contracting revenue in the past financial year, she says.
“We’ve seen a lot of take-up in the not-for-profit sector; the NDIS is driving a lot of change in that area and the way those organisations are internally structured and their systems and processes.