For job seekers, it should always be FREE and include services like resume critiquing, writing, or editing. Some staffing companies charge for these additional services but we strongly disagree with that.
For hiring companies, recruitment and staffing costs are broken down into two different paths: Permanent placement or contract-based hiring:
- With permanent placement, staffing companies charge a flat fee. Typically, this is a percentage of the placed employee’s permanent salary and ranges from 15-35%. Fees can fluctuate based on a variety of factors, including the economy, previously agreed upon pricing schedules, or the volume of business done with a particular customer.
- For contract-based hiring, fee structures typically fall into two camps: “Mark-Up” or “Bill Rate”. Mark-Up is a scenario where the staffing company is charging a “mark-up” percentage fee to the placed contract employee’s hourly rate. Bill Rate is where the staffing company charges the client hiring organization a flat hourly bill rate. The rate is calculated based on market conditions and supply/demand rather than the contractor’s salary.