Search thousands of topics on CostHelper

BROWSE ALL TOPICS >> babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business sports weddings
CostHelper > Personal Finance  > Employment > Employment Agency

Employment Agency Cost


How Much Does an Employment Agency Cost?

 
average costEmployer-Paid Agency: 10%-25% of Employee's First-Year Wageshigh costHeadhunter or Recruiter: 10%-30% of Employee's First-Year Wages

An employment agency, also called a recruitment or staffing agency, is a place for job seekers to find permanent work. According to Investopedia, there are two types of employment agencies: employer-paid and applicant- paid. There are also temporary agencies, which are typically employer-paid and offer short-term employment.

Typical costs:

  • An employer-paid employment agency collects a placement fee for each worker that is hired. A typical range is 10%-25% of the employee's first-year wages (gross wages, before taxes). For example, Larchmont Employment Agency[1] in New York specializes in child care and domestic placement services and charges families a nanny or housekeeper hiring fee of 15% of the employee's first-year wages. The company guarantees a suitable replacement within two months if the hire is unsuccessful. Adamen, Inc.[2] in Poulsbo, WA, offers accounting employment solutions at a rate of 17% of the employee's first-year salary for management and executive positions and 12% for support staff.
  • A headhunter or recruiter is a type of employment specialist that aggressively searches for high-level job candidates for 10%-30% of the employee's first-year salary. For example, Hans the Headhunter in Seattle charges employers an initial $1,000 executive search fee and an additional 10% of the employee's annual salary if the business chooses to hire one of their candidates. Rather than companies seeking out employment agencies, headhunters look for the best job candidates in a certain field and shop them to different businesses.
  • Employment agency fees generally vary by state, according to the Better Business Bureau[3] . Higher fees are typically associated with higher-level jobs.
Related articles: Online Job Hunting, Resume Software, Resume Services, Career Counseling, Temporary Agency

What should be included:
  • Employment agency services include collecting resumes, interviewing job candidates and performing assessments, in order to narrow down the applicant pool to highly qualified employees. This includes background and reference checks.
  • The employer can also leave hiring decisions up to the employment agency. Once the position is filled, the employer pays a one-time fee to the agency. The new, permanent employee is paid through the company's payroll and has no more dealings with the employment agency once hired.
Shopping for an employment agency:
  • An applicant-paid employment agency collects a one-time fee to the employee, rather than the employer. SmartMoney magazine[4] and the Association of Executive Search Consultants[5] caution people against using applicant-paid employment agencies.
  • The leading trade group for employment agencies, the American Staffing Association[6] has a directory listing partner agencies by state, which adhere to the group's code of ethics[7] .
  • The Better Business Bureau gives an extensive overview of employment agencies[8] , including a fees explanation and possible red flags to avoid. They recommend checking into laws which apply to local agencies.
  • Lib Gig, a professional networking website, offers 10 tips for using employment agencies[9] , including salary negotiation and interviewing.
  • Snag a Job lists tips on what to wear to an employment agency interview and a rundown on some common tests an applicant might have to take, such as spelling or typing assessments.
post Post    
CostHelper News


7 Lesser-Known Discounts for the 50+ Crowd
As they age, members of the Baby Boomer generation don't like to admit that they're senior citizens, but they love getting discounts. It's kind of a quandary, because some of the best deals available are reduced prices for older folks. || Posted October 21 2013


7 Ways to Stretch Your Reduced Food Budget
End of the year budgets are tight for everyone, especially in this economy.It's especially hard for the millions of Americans who depend on government programs like food stamps to help make ends meet. || Posted November 11 2013

‣ All CostHelper Blog Posts


What People Are Paying - Recent Comments


 

Comment On Your Experience With an Employment Agency
 
Subject:  *
Amount Spent:  *
Type of Agency: Firm: 
Comments: 
Purchased:  Year: 
City:  * State:  *
 
Information about you:
Email:  * Email addresses are not displayed.
Name:  This is the name we'll display with your post.
me on this computer
*=required field.
 



External Resources:
  1.  www.thelarchmontagency.com/new_families.nxg
  2.  www.adamen-inc.com/Our-Fees-are-Reasonable~71396~12525.htm
  3.  www.bbb.org/us/article/employment-services-279
  4.  www.smartmoney.com/spend/family-money/10-things-your-headhunter-wont-tell-you-3941...
  5.  members.aesc.org/eweb/DynamicPage.aspx?Site=aesc.org&WebKey=a8ec879d-c739-4d9b-aae...
  6.  www.americanstaffing.net/chapters/directory.cfm
  7.  www.americanstaffing.net/members/code_of_ethics.cfm
  8.  www.bbb.org/us/article/employment-services-279
  9.  www.libgig.com/toptenemploymentagencies
More Personal Finance Topics
Check Out All Costs for Personal Finance How Much Does Closing a Home Cost? How Much Does a Traffic Ticket Attorney Cost? How Much Do Funeral Flowers Cost?

Search Thousands of Topics on CostHelper.com

 
Today's Featured Cost Articles

About CostHelper
CostHelper is based in Silicon Valley and provides consumers with unbiased price information about thousands of goods and services. Our writers are experienced journalists who adhere to our strict editorial ethics policy.

CostHelper Community
UTI urgent care visit
Paid: 147.00
Visit was $135. Antibiotics was $12. Waiting for four hours in the waiting room and the visit was quick... [more]
-nervouschomper
Urinary Tract Infection Treatment Cost
Spanish Medical Interpreter
Paid: 150.00
I worked with SynShyne Services out of Monroe, NC. They were so worth the price! Professional, friendly, accurate, great attitude and always on time. I recieved an itemized report after every contact and a user friendly invoice weekly... [more]
-Gregory Richardson
Interpreter Cost
Dat
Paid: 495.00
This is how much I am paying... [more]
-Calista Christian
Dental Admission Test Cost
Shingrix
Paid: 48.00
... [more]
-Not that BB
Shingles Vaccine Cost
Skin prick allergy test
Paid: 573.00
Took my 9 yr. old in after an allergic reaction to eggs. Several panels for nuts, fish & top 8 allergens. Sure enough, egg came up. Got a script for epinephrine and left... [more]
-D’s mom
Allergy Testing Cost
Estimate for Teeth Cleaning Cat
Paid: 0.00
13 year old cat …teeth extractions, X-rays, blood work, anesthetic, cleaning estimate 2 to 3 thousand... [more]
-Terrimarie
Cat Teeth Cleaning Cost