What Does Recruitment Cost?
Our Pricing Guide
One of the first questions employers want to know when they call our office is: how much will it cost to hire a candidate using your services? Although this is a very difficult question to answer, I will try my best to explain some general pricing guidelines here.
Hiring a new employee by a third party is quite similar to hiring an employee through internal processes. With so many expenses and variables to consider, placing an exact number on the cost is challenging.
Depending on the type of role in question, it can take significant resources, time, and priority to find the right candidate. Our firm uses several tools and techniques throughout our search and selection process, but essentially it boils down to this. We actively search, find, engage, screen, qualify, and present the right candidate for your company. This requires us to understand your business and your workforce needs and requires that we engage with passive candidate pools (A-grade candidates who are not actively applying to every job posting on LinkedIn). From this point, we streamline the hiring process by handling all the back-end tasks, including sourcing candidates directly (rather than a "post and pray" approach), initial phone screening, in-depth interviews with real conversations, verifying certifications, writing candidate bios and presentation, and conducting reference/educational checks.
The challenge is that many of these activities vary based on the unique candidate. We use two pricing models to make things fair and consistent for our clients across our business. The model depends on the workforce solution our client selects.
Direct Hire Model
The first is our Direct Hire model. As the name suggests, a Direct Hire placement is when we place a permanent candidate with our client. There are two parts to the model. The first is the Engagement fee, an upfront deductible payment of $2,500. This flat fee is deducted from the final invoice, but ensures commitment to the role from both sides by incentivizing the recruiter to prioritize the search and work with urgency and attention to detail. While the fee is fully deductible, it is non-refundable.
Additionally, we charge a percentile of the annual salary based on the role's seniority, falling in the range of 20%-25%. This model comes with a standard 100-day replacement guarantee (for any reason). For a quick example, a candidate with a $50,000 salary would cost between $12,500-$15,000.
Hourly Pricing Model
The second is our Hourly pricing model. We use this model for temporary contracts, and evaluation hires. As a refresher, a temporary contract refers to candidates working on short or long-term contracts. An evaluation hire refers to hiring a candidate on an evaluation period to assess a fit before making a final hiring decision.
For our hourly pricing model, there is no upfront fee. The service rate is based on the candidate's wage or salary and the seniority of the role. There is some variation to this service rate, which includes:
Candidate wage
4% vacation pay
All burdens (WCB, EI, CPP, etc.)
Statutory pay
Payroll/admin fee
Recruiting fee
Selection process fee
While most recruiting firms will not provide pricing information upfront, we believe that honesty and transparency is the best policy. If you're interested in hearing more about our pricing options or want a specific quote, connect with our team below.