Recruitment firm Executive Access links fee to performance of recruits

Price linked to performance of a product or a solution is quite common but a recruitment company has tried this in the HR domain.

Executive Access, which hires chief executives and senior officials with annual salary of ₹60-70 lakh says it links its fees to outcomes.

“We keep a substantial portion of fees only if client is happy with placement of an official. It is not a transaction model but a value-added model,” says Ronesh Puri, Managing Director. Executive Access has helped recruit over 2,200 top executives at CEO or similar level in the last decade.

“I cannot tell a client that I am a good recruitment company but will not give guarantee for the candidate's performance. Tell me, is any product or service given without guarantee? We are trying to be different by being accountable and push ourselves more,” he told BusinessLine .

Executive Access started linking fees to outcome nearly five years ago. “After two-three years of learning , we started implementing this in the last 18 months. We hire around 100 people annually. We do not have this model with everybody. We sell the model where the client perceives it will be a value addition. Wherever this model is used, there the success rate is around 95 per cent,” said Puri, who has been in the HR industry for nearly 25 years.

Mishiring a candidate by a company could result in damage of over 26-100 times more than the person’s annual compensation package, he said.

“HR industry is not looking at outcomes but to close the deal. My proposition, if mishiring happens, it is indicative of the fact whatever has been done needs to be improved,” he said.

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