When job seekers and employers consider partnering with a staffing agency, it’s normal for them to wonder about the potential costs. If you’re a candidate or company that’s curious about how much you may need to pay to work with a recruitment firm, here’s what you need to know about the fees you will (or won’t) encounter.
Do Staffing Agencies Charge Job Seekers Fees?
As a candidate, you can use a staffing agency for free in nearly all cases. The vast majority of firms – including GSG Talent Solutions – never charge job seekers a fee. Instead, we consider it our job to get you a job, all at no cost to you.
Additionally, you won’t pay a fee if you secure a job through us. Whether you remain on the GSG Talent Solutions payroll for days, weeks, months, or years, you never have to pay us to stay on board or to keep working.
If you’re researching staffing firms and find one that does charge candidates a fee, be wary. In some cases – but not all – it could be a scam. Even if it isn’t, you still want to do some research to determine if what that service provides is worth the cost and confirm that you couldn’t get a similar experience elsewhere without the fee.
Do Staffing Agencies Charge Employers Fees?
Yes, employers do pay fees to access talent and workforce management services through staffing agencies. The fee structures can vary, with different approaches being used for different kinds of placements.
When a candidate is hired into a temporary or temp-to-hire position and is on the staffing agency’s payroll, the fee is usually based on the number of hours the worker records during a pay period. Typically, the cost is outlined as $X.XX per hour. This charge is on top of the employee’s hourly rate, covering the cost of the service and off-setting a range of worker-related expenses, such as workers’ compensation and unemployment insurance.
In some cases, there will also be a buy-out fee for temporary or temp-to-hire candidates. This is a charge for transitioning the employee to your payroll before a set amount of time has passed, such as 90 days. However, if you cross the time threshold, you can hire the worker permanently without having to pay a buy-out fee.
With direct hires, a flat-fee structure is more common. Usually, the amount is based on the position’s yearly salary, though firms may use different approaches in some cases. With the salary-based option, the percentage may be set for all roles or could vary depending on the complexity of the position, the rarity of the requested skillset, and other points.
As an employer, any and all fees are discussed with you in advance. That way, you’ll fully understand not only the services you’re securing but also the associated costs.
If you’d like to partner with a staffing firm to find a position or secure talent, the team at GSG Talent Solutions wants to hear from you. Contact us today.