Most agency owners aren’t aware that over a billion dollars in permanent placement fees changes hands every week – and that $7BN in contract fees changes hands in that same time.
Astonished? Join the club. Most recruiters don’t know that agencies generate $420BN+/year in fees. The staffing market is global, growing, and hitting new highs the past couple years.
At HIRABL, we’ve analyzed nearly 100,000,000 (100 million!) candidate submissions and are seeing the increase in placements rates, fees, and a faster time to fill.
We’re also seeing an increase in backdoor hires – from 1-in-500 submissions in 2015 to closer to 1-in-480 in 2016. That means more fees are slipping through the cracks as activity increases.
Here’s a few more facts about identifying and pursuing backdoor hires:
Missed fees or “Back Door Placements” are up 289% in one year*
78% of fees identified in the first 12 months are collected
Statute of limitations to collect fees is 3-4 years
Less than 10% of candidate submissions are tracked over time
What are your experiences with backdoor hires?