Employment Service Pricing Method

Recruiting fee agreements are based on the type of opening and the client's needs.

Employment services charge fees based on the type of opening and the pay rate of the position they are recruiting for.

Temporary Employees

Temporary staffing agencies help clients meet short-term staffing needs. Typically, a temporary agency will charge a percentage markup on the employee's hourly pay to cover insurance and profits. Billing is then calculated based on the total number of hours the temporary employees work on the job site.

Direct Hire Recruiting

Executive recruiters and headhunters charge a fee for their services with a pricing structure based either on contingency or retained agreements. A contingency agreement is typically based on a set percentage of the employee's salary. For example, if the employee is offered a $40,000 salary and the recruiting service charges 20%, the fee would be $8,000. A retained agreement involves a set fee that is paid in advance of the firm's recruiting efforts.

Employee Leasing

Employee leasing services take over legal and financial responsibilities of employment for a client. These pricing structures are based on a complex calculation of the cost of benefits, taxes and insurance of the employees. The client is charged a flat rate or percentage of salary rate for each employee that is leased.