Welcome to the world of recruiting agencies, where the question on everyone’s mind is “how much do recruiting agencies charge?” Well, let me break it down for you in more detail. The cost of a recruiting agency depends on the type of service you’re looking for. There are three main categories of recruiting agencies: Retained, Contingency, and Recruiting-as-a-Service.
Retained agencies are like the “luxury car” option. These agencies are typically engaged for executive or specialized searches and are typically paid a retainer upfront and a success fee upon placement. The success fee can range from 20%-30% of the candidate’s first year base salary. This option is best for high-level or hard-to-fill positions, or if you want to hire someone who has the “keys” to success.
Contingency agencies are like the “bargain hunter” option. These agencies work on a “no placement, no fee” basis. These agencies are typically paid a percentage of the candidate’s first-year salary upon placement. This percentage can range from 15%. This option is best for high-volume recruiting or filling multiple positions at once, or if you’re trying to “score a deal” with your recruitment.
Recruiting-as-a-Service agencies are like the “subscription box” option. These agencies offer a wide range of services such as sourcing, screening, and interviewing. The cost of these services is based on a flat fee monthly subscription model, which can be more cost-effective and predictable. This option is best for companies that need support with their recruitment process but don’t want to pay for a full-service agency, or if you’re looking for a more “budget-friendly” way to find the perfect candidate. A great way to save on how much recruiting agencies charge.
In conclusion, the cost of a recruiting agency can vary widely depending on the type of service you require. Retained recruiting can cost between 20%-30% of the candidate’s first year base salary, contingency can cost about 15% of the candidate’s first year base salary, and Recruiting-as-a-Service is a flat fee monthly subscription model. At Axe Staffing & Recruiting, we’ll work with you to find the perfect fit for your needs and budget, so whether you’re looking for top talent or just trying to fill a few open positions, we’ve got you covered. We’ll make sure you don’t have to “break the bank” to find the perfect candidate for your company. Don’t just trust what we have to say, watch this Client Testimonial NOW!