Percentage Cost Model
This is the most common type of pricing model employed and favored by the recruitment industry and their clients. It is simple, cost effective and comes with very few headaches. In this model, cost of resource per month is fixed at a certain percentage on the salary decided by the client, who will negotiate and fix the salary of the candidate from their end. Once the candidate is hired, Novo is paid the agreed percentage of the salary as administrative charges.
The percentage calculated depends on numerous factors and is not the same for every job type. Some of the factors that are taken into consideration while calculating include the type of job, the worker"s payroll costs depending on what state / city the job is in, their compensation rate, if benefits are included etc. This model allows transparency as client will get to know the salary paid to resources and thereby ensures that resource salary expectation is met at all times.