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Recruitment & retention

Salute Recruit launch set to reduce the cost of recruitment for employers

by Personnel Today 24 May 2010
by Personnel Today 24 May 2010

Innovative new website uses reverse auction to drive down costs and recruitment agencies are paid by performance

Salute Recruit, a new online management tool aimed at ensuring a streamlined and more effective recruitment process has launched today.

Salute Recruit drives down the cost of recruitment for employers by using a reverse auction process to achieve the best value.  Employers post their vacancies on Salute Recruit, recruitment agencies submit their best offer in terms of fee and the employer selects the one they feel offers the best value.

Recruitment agencies are paid by performance, with employers and candidates requested to leave feedback after each placement. Good feedback will mean the agency paying less commission to Salute Recruit for the next placement.

The recent Recruitment, Retention and Turnover report from the Chartered Institute of Personnel and Development (CIPD) revealed that the average cost[1] of filling a vacancy per employee is £4,000. For managers and professionals this rises to £5,000 and for senior managers/directors the figure is £10,000. Salute Recruit aims to significantly reduce these costs and also save employers time spent on briefing multiple agencies.

“The recruitment industry hasn’t enjoyed the best of times recently, with rising placement fees and a lack of quality candidates,” said Salute Recruit co-founder, Mark Smith. “We believe Salute Recruit will provide massive value for employers, as they will only have to submit one brief, the reverse auction will reduce their costs and it will also improve the quality of service provided by recruitment agencies.”

With the opportunity to access potentially thousands more roles, recruitment agencies also stand to benefit. Salute Recruit is an easy way for them to increase their new business pipeline, with no need to tender or undertake extensive marketing campaigns.

Recruitment agencies will be further incentivised to use Salute Recruit by the innovative feedback system the site uses. Good feedback will reduce the level of commission paid to Salute Recruit by the recruitment agency, encouraging them to provide a better service for the employer and candidate.

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Mark Smith continued: “Salute Recruit works for all parties involved in recruitment. This isn’t ‘a.n other’ job listing website but a management tool that brings recruiters and employers together to mutual benefit. Any decent recruiter will receive good feedback on their services which will be seen by hundreds of potential employers, whilst the bad recruiters will simply have to up their game.”

Salute Recruit is free to use for both employers and recruitment agencies, although it does take a percentage of the fee agreed during the reverse auction process. A number of ways to further improve the recruitment process are already in development, including an iPhone application that will be available later in the year.

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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