Staffing Agency Fees

By Megan McQuade On September 14, 2018

When looking for a staffing partner, one of your first questions is mostly likely, "How much does your staffing agency cost?"  or "What are your staffing agency's fees?" Often, it's hard to find that answer quickly! Usually, it requires a phone call with a sales representative and a bit of negotiation. Rarely can you find staffing agency fees on a staffing agency's website.

Staffing Agency Fees

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Recruiting Firms aren't trying to make this hard on you. Generally, there are many variables that go into how much a staffing agency charges for a particular role. Ex: search type, level of role, difficulty of search, time to fill, etc. TruPath, a national search firm, has decided to making pricing transparent by publishing fees on its website.

How Much Does a Staffing Agency Charge?

Staffing agency fees vary from one firm to another. In general, you will see fees ranging from 20-35% on direct placement services. C-Suite searches are often higher. Overall, the fee increases as the difficulty, scope and experience required for the role increase. The fee is based off of the role's annual salary. Some agencies base it off of total compensation to include bonuses, etc. TruPath does not. TruPath fees are based off of salary only.

A direct placement occurs when an agency fills a full-time hiring need for an organization. Ex: an Engineer, VP of Sales or Human Resources Manager to name a few. This staffing agency pricing (percentage of annual salary) does not apply to temporary or contract labor. These fees are often referred to as "mark ups" and are priced differently because you are "trying" the talent out before "buying" it. In a tight, competitive labor market, contract recruiting becomes more difficult due to the amount of full-time opportunities available. However, this is not true for all industries - IT for example.

TruPath's Staffing Agency Fee Philosophy

The team at TruPath, a national recruiting firm headquartered in Arizona, sat down to discuss this very topic - how much staffing agencies charge and the lack of transparency in pricing. When TruPath team members are researching online, they prefer to find pricing quickly. So, why shouldn't TruPath be providing the same ease of search for its clients (TruPath refers to them as partners).

Yes... there are variables that go into pricing, but the TruPath team decided dissect the variables and provide the best prices for potential partners up front. This not only helps clients in researching potential recruiting partners, it cuts down on the time spent on the phone negotiating. A true WIN-WIN!

TruPath's Staffing Agency Fees and Guarantees

  • Non-Leadership/Non-technical – 22% Contingent (60-day guarantee)
  • Technical – 25% Contingent (90-day guarantee)
  • Management/Leadership – 28% Contingent (90-day guarantee)
  • VP – C-Suite – 30% Retained

EX: TruPath is partnering with an organization to fill a Plant Manager hiring need. The salary is 100K. The fee on this search is equivalent to 28% of first year's annual salary of 100K. The fee comes out to $28,000 due upon successful placement. 

Each direct placement comes with a guarantee. If the candidate does not work out during the guarantee period, partners get a one-time FREE replacement. Now, this rarely happens, but it exists to protect clients. Recruiting is the business of people. Sometimes, people are unpredictable!

Contact a member of the TruPath team today to discuss your hiring needs at 1-844-TRUPATH (878-7284). If you fill out the Contact Form linked below, a member of the leadership team will be in contact with you soon. Click here to learn more about TruPath’s hiring process (TruProcess).

As a trusted recruitment source for more than 15 years, recruiters at TruPath have a customizable process that helps our partners feel comfortable in their search for a candidate.

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