We get a lot of questions around our terms of service. Mostly along the lines of “How are you able to charge only 5%?!” Simply put, we manage this by doing our best to operate within an efficient set of business parameters. If we make the assumption that the recruitment industry is historically inefficient, and hence charges 15%, it would not make sense to replicate these traditional terms. There is therefore an inherent quid pro quo embedded within our terms that we are unashamedly unapologetic about.
There are three possible instances where you might receive an invoice from us – 1) when you commence/extend a job, 2) when you hire, and 3) when you don’t play ball. When you commence/extend a job, it will cost you R1,950. When you hire, it will cost you anything between 2.5% and 10% of the candidate’s annualised cost to company, subject to a minimum amount of R19,950*. When you bend the rules, it will cost you 2.5% of the candidate’s indicated annualised salary.
The commencement fee kicks things off and lets us know that you’re serious about hiring. It also holds us to account as you’ve now got ‘skin in the game’ and expect good service in return. Provided we’ve upheld our end of the deal, the extension fee gives you the option to continue the search if after 3 months you haven’t pulled the trigger on a hire. These fees have resulted in increased employer engagement and promote a partnership approach to hiring rather than a one-sided ‘spray-and-pray’ of specs and CVs.
Starting at 5%, the success fee is adjusted (if applicable) as follows:
· +2.5% if no sole mandate is granted
· +2.5% if the candidate’s annualised salary exceeds R600,000
· -2.5% if you elect not to receive recorded video screening interviews*
* The minimum fee reduces to R9,950 if this option is chosen.
The success fee is invoiced at the point an unconditional offer or contract is concluded between employer and candidate. Importantly, the success fee remains due and payable in the event that the candidate does not arrive for work (either physically, or virtually if working from home); Crayon is responsible for the candidate interaction pre offer/contract, while the employer is responsible post conclusion of the offer/contract. In the unlikely event that this does occur, or the candidate is no longer in your employ within the first 3 months, we undertake to source a replacement hire at zero cost. This is not a guarantee, nor does it entitle the employer to a refund or credit.
The penalty fees are solely intended to deter employer behaviour that can lead to inefficiencies within the model. These are seldom triggered, and even more seldomly enforced, but include a break fee (for not honouring the sole mandate), a slowplay fee (for continually interviewing but never hiring) and a lowball fee (for offering a salary way below what the candidate was presented at).
If you are unsure about committing to a candidate long-term, or wish to make use of our freelance offering, the success fee climbs to 10% of the monthly contract amount, subject to a minimum amount of R2,950 per month. This applies to all hires where a term shorter than 3 months effectively buys the employer optionality on a sourced candidate. Should you then extend the contract, or bring that candidate onboard permanently, the normal success fee will apply. At or beyond 3 months, the success fee is determined using the annualised salary of the candidate, irrespective of contracted term.
Any presented candidate is subject to the success fee for a period of 12 months post presentation (‘presentation’ includes the displaying of candidates via your employer dashboard). Commencement, extension and penalty fees are payable upon presentation of invoice; success fees are payable at the earlier of 30 days from invoice or the candidate start date.
The above relates for the most part to our managed recruitment solution, Crayon Talent. Our Crayon Lite and Crayon Social solutions offer DIY recruitment from as little as R950 per job with your first job posting free (using the voucher code FIRSTTIMER). If you have any questions regarding our terms or the thinking behind these, please get in touch via our contact page; we’ll then setup a Crayon discovery chat to run through the details and see how best we can (efficiently and affordably) assist with your talent sourcing needs.
You can review our full terms of service document HERE.