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Featured post: Why volume discounts in staffing?

April 04 2013

Volume discounts are becoming a trend in corporate American and now the staffing industry is being impacted, writes Joe Gambino in The Staffing Stream. To read the full post in The Staffing Stream, click here.

The Staffing Stream is a blog where issues, trends and views from all corners of the staffing industry are discussed. Our ecosystem includes a range of thought leaders — such as executives at staffing firms, buyers of staffing services and representatives of industry vendors among others. For more information, go to The Staffing Stream home here.

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Project One

Gary Zander 04/04/2013 04:49 pm

George you're spot on with your "economies of scale" comment. On the recruiting side, each separate search assignment takes as much time, care & effort as the prior one. The "cost of goods sold" does not come down with more orders (although perhaps a bit for identical openings), but certainly not across the board in the manner that clients like to apply these discounts. In our business, I always view volume discounts as a penalty for doing a great job at the client. The more placements we make, the less we're rewarded per placement. If clients really want to positively impact their staffing program, they need to do opposite. Motivate and incentivize your suppliers to devote more & more time and energy to your account by rewarding them with higher fees based on their success. If this sounds like a dumb client idea, go ask your VP of Sales.


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