Cost associated with Employment Agencies.

When using a staffing agency, there are costs associated with the services provided by the agency. Typically, the staffing agency charges a fee to the employer for their services. The fee structure can vary depending on the type of job being filled, the level of expertise required, and the length of the assignment.

There are two main types of fee structures used by staffing agencies:

Direct Hire fee: This fee structure is used when an employer hires a candidate from the employment agency directly. The staffing agency charges a one time fee which is a percentage of the worker’s salary as a fee, typically 15-25% of the annual salary.

Hourly markup fee: This fee structure is used when an employer hires a temporary worker for a specific project or is observing the worker to bring on permanently, once they complete the temp to hire process. The staffing agency charges an hourly markup on top of the worker’s hourly rate, which covers the agency’s costs, including payroll taxes, workers compensation, unemployment taxes, recruiting expenses and tests, and of course some profit. The hourly markup can vary but is typically in the range of 40-60% of the worker’s hourly rate, based on the cost of workers compensation, etc.

It’s worth noting that in some cases, the worker may also be responsible for paying a fee to the staffing agency. This is more common in situations where the worker is seeking a specific type of job or career placement services. In such cases, the fee may be deducted from the worker’s first paycheck or paid separately.

If you would like more information on the costs of using an employment agency, or have questions about our service, please give us a call.

Vest Professional Placement Firm, LLC
www.VestPros.com
816-282-6288