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Permanent Placement

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This entry was posted on 4/30/2007 10:57 PM and is filed under uncategorized.

The second area I wanted to touch on was the current market and permanent placement.  Right now the market for .NET resources is surging ahead and making it very difficult for companies to find top .NET talent.  Generally, the talent that companies are seeking are working for other companies in the metro Richmond area.  Sometimes the talent is at a direct competitor, and sometimes it is at a company in a completely different industry.  Nevertheless, other companies are employing the desired .NET talent in a full time capacity. 

Just as I indicated what was not popular in the Contract to Hire model; is exactly what is attractive in a permanent opportunity.  The hirng company is asking you to leave your full time role at your current company and come work, in a full time role, with the hiring company.  As a candidate you are able to continue working without an interuption in pay (often an increase), no lapse in benefits and complete security with being an FTE in the new company.  The perceived risk is vey small. 

In a tight candidate market, this is one of the most affordable and quickest way to finding good candidates.  Recruiting firms will generally charge a placement fee (to be paid by the hiring company) of approximately 25% of the candidates first year salary.  This fee also has a guarantee for the client of X number of days to ensure that the candidate(new employee) works out.  The great thing for companies is that this is done on a contingency basis; so that companies get to see multiple candidates and can conduct multiple interviews at no cost.  The only time a placement fee is charged is when an employer makes an acceptable offer to one of our candidates. 

Candidates enjoy the permanent placement model because they can continue to work at an old job until they find the right match at a new company.  And, if their criteria is never met by a perspective employer; they get to continue working at their current employer. 

During a tight market, I encourage companies to hire new employees through the Permanent Placement model because I can ensure them that they are getting the best talent available.  We can guarantee them that we are only working with motivated candidates with a sincere reason for leaving.  And if they don't like our candidates, then the client does not have to pay our company one dime. 

Next up is straight contract/consulting work.

 

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