We believe in having a transparent model which incentivises us to reduce your costs.
Our commercial model is simple. We charge a modest up front fee which covers the initial assessment and set up costs. We then charge 2% of projected cost savings in year one and 1% of projected cost savings in year 2.
The upfront fee varies depending on the complexity of your existing arrangement. If we are replacing a single team of ten, all sourced from the same consultancy then it will be lower than if you have a hundred people sourced from six consultancies.
Example one – a single team of ten, all sourced from the same consultancy
In this example, we will assume that the initial assessment will take one week, all staff are available and the blended day rate you are currently being charged is £1500 per day. We will also assume a blended rate for the contractors we are able to source of £800 per day and 200 working days per year.
This would mean that your current estimated running costs are £3,000,000.
| Item | Description | Cost |
|---|---|---|
| Initial assessment | Cost to undertake analysis of what your business goals are, what the consultancy is currently doing to meet these, interviews with current team members, calculation of projected costs based on current day rates. | £8,000 |
| Year 1 cost savings (2%) | Based on a daily saving per person of £700, the annual cost of your new team would be £1.6m which is a cost saving of £1.4m in the first year. | £28,000 |
| Year 2 cost savings (1%) | In year 2, we charge only 1% of cost savings. | £14,000 |
The initial assessment is invoiced on delivery and the cost savings paid monthly throughout. In this example, for year 1, that would be £2,333 per month and for year 2 only £1,166 per month. Please note that in addition to our fees and the costs of the team itself, you are likely to have fees to pay to the recruitment company.
Example two – A large programme of 100 people, with teams provided by different consultancies.
In this example, due to the complexity involved, the initial assessment will take three weeks, and will also assume that all staff are available and the blended day rate you are currently being charged is £1500 per day. We will also use a blended rate for the contractors we are able to source of £800 per day and 200 working days per year.
This would mean that your current estimated running costs are £30,000,000.
| Item | Description | Cost |
|---|---|---|
| Initial assessment | Cost to undertake analysis of what your business goals are, what the consultancies are currently doing to meet these, interviews with current team members, calculation of projected costs based on current day rates. | £24,000 |
| Year 1 cost savings (2%) | Based on a daily saving per person of £700, the annual cost of your new team would be £16m which is a cost saving of £14m in the first year. | £280,000 |
| Year 2 cost savings (1%) | In year 2, we charge only 1% of cost savings. | £140,000 |
The initial assessment is invoiced on delivery and the cost savings paid monthly throughout. In this example, for year 1, that would be £20,333 per month and for year 2 only £10,166 per month. Please note that in addition to our fees and the costs of the team itself, you are likely to have fees to pay to the recruitment company.
For transparency, depending on the recruitment company used, we may also receive some payments from them.
