SOURCE: ITeego

ITeego

September 02, 2009 01:27 ET

Technology Search Firm ITeego Introduces Unprecedented Pay-for-Performance Fee Structure

ITeego Shares the Hiring Risk With Managers by Offering a 'Try Before You Buy' Recruiting Fee Structure

LOS ANGELES, CA--(Marketwire - September 2, 2009) - ITeego, a premier IT search agency based in Los Angeles, today announced a new Pay-for-Performance fee structure that eliminates the prohibitive costs and risks synonymous with third-party recruiting agencies. ITeego does so by offering clients a 'try before you buy' fee structure in which incremental payments representing a percentage of the total recruiting fee are spread out over the course of a year and paid only as new hires reach calendar day milestones.

"With Pay-for-Performance, we help managers mitigate the risk of hiring mistakes by sharing the risk with them. Pay-for-Performance means paying recruiting fees for a new hire's success on the job, not for a recruiter's success in finding the candidate. The key difference being that recruiting fees are paid for results instead of potential," said Kevin Jenkins, IT Search Specialist at ITeego. "The logic is that if a new hire is worth keeping around at 30, 90, 180 and 365 days, then they're worth the recruiting fee. The result is a better allocation of a manager's HR budget and demonstrable value for their recruiting fee investment."

Once a new hire has been on the job for a year, ITeego ultimately earns a total aggregate fee between 20% and 25%. When considering that traditional agencies charge anywhere from 20% to 35% and that amount must be paid in full usually within 10 days of a new hire's start date, ITeego's Pay-for-Performance fee structure should give hiring managers plenty to smile about.

"Not only is our Pay-for-Performance fee structure extremely cash flow friendly," Mr. Jenkins adds, "but it also enables managers to easily correlate the recruiting cost of a new hire directly with the value of their performance on the job. Our clients know the value they're getting for their recruiting fee investment before even paying it. With other agencies, the return on a recruiting fee investment is difficult to measure till much later, if ever. "

Low risk combined with minimal upfront costs, means ITeego's Pay-for-Performance enables more businesses to procure and benefit from professional recruiting services than ever before. Incremental payments make it easier to green light new search assignments as well as recruit for multiple openings simultaneously. The clear advantage for managers is the ability to address on-going recruiting needs with minimal risk or financial impact.

ITeego is the first search agency in the world to offer a Pay-for-Performance fee structure.

About ITeego

ITeego specializes in IT recruiting exclusively for start-up and growth stage software and internet technology companies based in southern California. ITeego helps IT leaders maximize team performance through superior hiring. More information about ITeego and the Pay-for-Performance fee structure can be found at www.iteegosearch.com.

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