Rubicon

Competitive Analysis: The Rubicon Search Difference

Have you ever wondered why the staffing industry seems to be so inflexible with their permanent staffing fees? You would think the advent of the Internet and the proliferation of corporate in-house recruiting would change the service offerings and fee structures of the staffing industry. The fact of the matter is, traditional staffing agencies are unable or unwilling to change their services and fee structures. This is cause of the high overhead and built-in inefficiencies of those services.

The inefficiencies of staffing agencies services emanates from the perception clients have of the industry. Clients are naturally reluctant to work with staffing agencies, because of their high fees and poor service. This reluctance leads to poor communication between the client and the agency, which leads to a low placement-to-submittal ratio. Staffing agencies have to recoup their cost for low placement-to-submittal ratios by charging high fees for placements. In other words, the client company that pays the placement fee ultimately subsidizes the staffing agency's built-in inefficiencies¹.

Rubicon offers an innovative efficient recruiting solution that is based on mutual trust and open communication between the Rubicon Recruiting Manager and the client's hiring managers. Communication and teamwork are naturally developed between the client's hiring managers and the Rubicon consultant, as some of the work is performed under the client's direct over site while Rubicon is onsite. In the event a hiring manager rejects a candidate submittal, Rubicon's Recruitment Manager's onsite presence allows them to solicit immediate feedback from the hiring manager. Immediate feedback is critical to Rubicon's recruiting productivity; because it allows the recruiter to make necessary search adjustment to fill the requisition.

Short & Long Term Value of Rubicon's Services
Rubicon's contingent recruiting service can save its clients anywhere from 50% to 70% per placement. For example: on a placement of a mid-level software engineer who accepts an offer $75,000 per year base salary, your typical agency would charge a fee of $15,000 to $18,750. Likewise, Rubicon, with its onsite recruitment service, would charge a fee as low as $5,250. This is a savings of $9,750 to $13,500 per placement!

Below is a fee comparison graph illustrating how much you can save per placement by choosing Rubicon as your primary recruiting vendor. In this illustration placements are for employees with salaries ranging from $60,000, $75,000 and $90,000 per year.

Below is a comparison graph illustrating the aggregate savings a company could save if they choose Rubicon as their primary recruiting vendor. On 80 placements a company could save three quarters of a million dollars on placement fees!

Note: Costs in the graph above are based on staffing agencies that bill 20% for employees who earn $70,000 per year (Staffing Agency fee $14,000) Rubicon's cost is derived from billing 7% for employees who earn $70,000 per year (Rubicon's fee $4,900)

¹ An excellent placement to submittal ratio for a staffing agency would be 1 placement per 4 job orders worked; however, it is more likely to be 1 placement per 10 job orders worked.