Your team is stretched, a role’s been sitting vacant for months, and you don’t have the networks to reach the right people. Perhaps it’s a hard-to-fill role, or a role that no-one in the organisation has experience recruiting for. Sound familiar? These are some of the times when the idea of engaging a recruitment company/agency can come up.

For NFPs especially, the decision to use a recruiter can be a difficult one. While they can open doors and save time, they are very expensive – up to 20 percent of the first year’s salary for the role you’re recruiting. So you want to make sure that if you decide to go down that path, you’re doing it for the right reasons, and you’re going into it with your eyes wide open.

So if you’ve decided to engage a recruitment agency, how do you ensure it’s a worthwhile investment? We asked three leading NFP recruiters – Richard Green from NGO Recruitment, Rosheen Singh from Impact Advising and Kate Larkin from Beaumont People – about what NFPs need to know to choose and make the most out of working with a recruitment partner.

1. Most recruiters prefer to work on a retainer or exclusive model

When you’re choosing a company to work with, one of the first things to understand is how your potential recruitment agency’s pricing model works. While some operate on a contingent basis – that is, where payment is only made if a candidate is successfully placed – most NFP recruiters prefer a retainer or exclusive model, which involves an upfront commitment from both sides.

Kate Larkin from Beaumont People  says the contingent model can sometimes lead to a messier process, particularly when multiple agencies are engaged at once.

“There’s generally less success with the contingent model, because organisations often engage three or four agencies at once and it becomes a race to put candidates forward,” she says. “This can create more work, as the same candidate may be submitted by multiple agencies.

“How we prefer to work, and how 80% of our clients engage us, is on a retainer model where we act as their exclusive agency. It means we can go to market representing their organisation exclusively, which leads to stronger and more positive candidate outcomes.”

2. You can negotiate when it comes to fees and timing of payment – but ensure to agree upfront

Recruitment fees are typically calculated as a percentage of the successful candidate’s total salary package, and are often only payable if the recruiter is successful in finding you a new employee. The percentage, payment structure and any additional costs vary depending on the recruiter and arrangement, so it’s important to discuss these upfront.

“For a permanent role, we charge 19% of the candidate’s salary,” Richard Green from NGO Recruitment says. “And we charge advertising on top of the fee. If we have multiple roles from one employer, we’ll drop fees to reflect economies of scale. Clients can negotiate on fees, and we are receptive to that of course as it’s a very competitive industry.”

At Beaumont, clients pay a third of the fee at the outset, a third at the shortlist stage, and a third on placement.

“Our retainer model is more cost-effective because on contingent, there is the chance we might not be paid, so the fees are higher,” Larkin says. “Our advertising spend on job boards is included in the initial fee. We may charge more if psychometric testing or background checks are required.”

3. Recruiters find most of their talent through their networks and well-placed job ads

All three recruiters say most placements come through their networks, though advertising still plays an important role.

“Our team is made up of specialist recruitment consultants across different roles in the charity sector, so they’re regularly speaking with people in those spaces,” Larkin says.

“But we always advertise roles as well, because people are often drawn to a particular organisation or cause. Advertising is good from a branding perspective and can attract people who might not be actively looking.”

At NGO Recruitment, about 80% of placements come from candidate database search and 20% from advertising.

“We advertise to make sure the whole market is covered and that we’ve done everything we can to find the best candidate,” Green says. “EthicalJobs.com.au is a valuable job board and we always post there, but we also reach out to people who may not be actively looking. We have a database of more than a quarter of a million people.”

Rosheen Singh from Impact Advising adds that it’s important that clients understand engaging a recruiter is not just a quick fix.

“You’re doing it because recruiters have the talent pools, the network and the reach into the market that most organisations don’t have internally,” she says.

“Yes, you’re likely going to improve the odds of filling the job in a timely manner, but it’s not an immediate fix. There’s still a search happening in the market, and that takes time to do properly.”

4. They can help you with everything from writing position descriptions to post-placement check-ins

Larkin says she always starts the recruitment process by learning what exactly the client needs.

“From there, we might work with the client to actually define the role and job title, write the job ad, post it to [job] boards, and then search our database and networks for suitable candidates,” she says. “We also reach out to people in the sector for referrals, so it’s a multi-pronged approach to finding the right person.

“We then provide a shortlist with summaries for the client, and organise interviews with the candidates the employer agrees to meet,” she says.

Recruiters can also help organisations design an effective assessment process, adds Singh.

“We can make sure the interview content is as good as it can be, get the questions right, and decide whether there’s going to be a task or another assessment step,” she says.

“If you’re going to use an agency, use them to support the whole process, not just the sourcing. We can advise on what works well, what candidates respond to, and how to create a process that gives you the best chance of securing the right person.”

Larkin adds that recruiters will also conduct reference checks and coordinate the offer process, supporting both parties through to signing and through to onboarding to ensure a smooth transition.

“We check in with the candidate and client after placement,” she says. “Most come with a three- to six-month guarantee, and we believe ongoing support is important to help ensure the placement is successful.”

5. The arrangement can be completely bespoke

Some organisations engage recruiters for specific parts of the hiring process, rather than the entire hire.

According to Larkin, this flexibility is central to how recruitment partnerships work. “Some clients use us for the full recruitment, while others might just need help with certain stages, like advertising the role, screening applicants or interviewing candidates,” she says.

Singh agrees, noting that recruitment support can be shaped around each organisation’s capacity and priorities.

“We work with clients in different ways depending on their needs. Some want an update once a week, others every two weeks. We design a process that works with our clients’ diaries and internal capacity. It’s about creating a structured process that keeps momentum while also being realistic for everyone involved.”

6. You’ll get better results if you put the time into a top-notch briefing

Singh says one of the most important parts of engaging a recruiter is providing a detailed briefing so expectations are clear from the start.

“Really talk about the culture, the leadership of the organisation, what success looks like in the role, and the type of person who will thrive in your environment,” she says. “All of that helps us represent your organisation authentically and attract the right candidates, not just available candidates.”

“A good brief has a lot of detail,” Green adds. “The more detail an employer can give, the better. It helps us write the advertisement, prepare candidate information and have consistent conversations with candidates.”

Larkin stresses the need to have all stakeholders involved in the briefing from the start.

“There’s nothing worse than getting to the end of a process and someone raises requirements that were never discussed,” she says. “Having the right people involved from the start, and clear timelines in place, makes the process much smoother.”

7. They can provide  market insights and help with  a positive candidate experience

According to Green, quality recruiters can bring a broader view of the market, helping organisations assess candidates they might otherwise overlook.

“We’ll send CVs to the client as part of the shortlisting process and explain why we think someone is a strong fit, including qualities that might not be obvious on paper,” he says.

“Many times, clients interview someone they weren’t initially sure about and realise they’re an excellent candidate. As consultants, we have a well-developed understanding of what a good placement looks like for a range of roles.”

“If you’re going to spend the time and money investing in a recruiter, listen to them,” adds Singh.

“If we’re saying the salary is unrealistic, or suggesting tweaks to the role or positioning, part of what you’re paying for is that market feedback. We’re having conversations with candidates every day, so we can give you a realistic sense of what’s achievable and how to position the role competitively.”

Larkin adds that recruiters also play an important role in shaping how candidates experience the organisation.

“Candidate experience is key,” she says. “Strong candidates are in demand, and they’re assessing the organisation as much as the organisation is assessing them. Making sure they have a positive experience of the hiring process is important, regardless of the outcome.”

8. Most offer guarantees and clear terms, so negotiate on the fine print before signing

Recruitment agencies should provide you with clear terms of business and a guarantee period to protect employers if a placement doesn’t work out. The longer the guarantee period, the more confident you can feel in the outome of the recruitment process, so this is something you can and should negotiate to get the best deal.

“We have a guarantee that ranges from three to six months and sometimes 12 months,” Green says. “If someone leaves within the guarantee period, we will replace the role free of charge. Before we do anything, we send a proposal with terms of business, and it’s all spelled out there in plain English.”

Larkin says these guarantees are usually supported by regular check-ins during the candidate’s probation period.

“Anyone that an agency places with a client would generally come with a three- to six-month guarantee,” she says.

“If something doesn’t work out during that period, we can refill the role. We also check in regularly with both the client and candidate during probation to make sure they’re settling in and address any concerns early.”

9. Working with a recruiter isn’t “hands-off” –  it works best when you stay engaged

For Green, the strength of the relationship with a client is central to a successful search.

“If you’re engaging an agency, there’s an expectation that you work together and stay engaged in the process,” he says. “If it’s more hands-off – “Just send us CVs if you find somebody”– it leads to lower engagement and weaker outcomes. A strong partnership leads to a stronger search.”

“Make sure you’re partnering with the right recruiter for you,” Singh adds. “Do your due diligence and meet with agencies to understand how they work. You want to find an agency that can form a genuine partnership with you, where there’s values alignment and a shared understanding of your mission.

“I would also recommend you meet with the recruiter in person. If that’s not possible, carve out enough time to talk on the phone or online. That upfront investment makes a huge difference.”

10. They can help you with permanent, temporary or interim staffing

Beyond permanent employees, recruitment agencies can also provide temporary staff during busy periods or while a permanent role is being filled.

“If a client needs short-term support while recruiting for a permanent role, or during peak periods, we can provide temporary staff,” Larkin says. “They’re employed and payrolled by us, and work on-site with the client, who simply approves their timesheets. It gives organisations flexibility, particularly if they’re managing headcount constraints or short-term needs.”

For many NFP organisations, deciding that you can’t recruit a role internally means spending a significant amount of precious and limited funding on a recruitment company. If you need to do that, hopefully these tips will help you enter the process with your eyes wide open, and help you get the best outcome for your organisation.

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Not-For-Profit People is an initiative of EthicalJobs.com.au — Australia’s top job-search site for the not-for-profit sector and beyond. 10,000 Australian charities, not-for-profits and social enterprises use EthicalJobs.com.au to find dedicated and passionate staff and volunteers to help them work for a better world. Find our more at EthicalJobs.com.au/advertise