Search thousands of topics on CostHelper.com

BROWSE ALL TOPICS >> appliances babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business 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
post E-mail post Post  

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 E-mail post Post  
CostHelper News


10 Key Ways to Prepare for Extreme Snow
Forecasters are predicting a true nor'easter will hit the eastern and central states with rain, thunderstorms, ice, snow and high winds over the Thanksgiving weekend. It's crucial to plan ahead, before bad weather hits. || Posted November 26 2013


10 Most Popular Cosmetic Procedures Before the Holidays
With reunions and other get-togethers scheduled during the holiday season, most people want to look their best at this time of year. For some, that means filling in those wrinkles with a bit of botox, or having a nip and tuck down here and there. || Posted November 23 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/?zon...
  5.  members.aesc.org/eweb/DynamicPage.aspx?Site=aesc.org&WebKey=a8ec879d-c739-4d9b-aae8-621...
  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
Lizard
Paid: 150.00
The beardie was adopted for $20.00 at a local repticon. Tank was over 30 inch long, cost less than $70-80 at Petsmart during Xmas sale. Everything else were bought online from Dr. Foster, Amazon and Chewy... [more]
-Gaga
Pet Lizard Cost
My Entertainment Company Went Above & Beyond The Call Of Duty
Paid: 2100.00
All I can say is WOW. When I hired Evan Nine Entertainment, I had no idea I was going to get so much extra for my money. His company handled The DJ/MC, Photography, Uplighting, and Wedding Officiant... [more]
-Linda Grayson
Wedding DJ Cost
TTE 93306
Paid: 1208.00
Went for echo at cardiologist's office. Hadn't met deductible and my BCBS estimate online was $408 done in doctor's office. Well, the cardiology office had been acquired by Mission Hospital so they charged their rate which was ~$1980... [more]
-C. V. Wynne, M.D.
Echocardiogram Cost
Broken drain line replacment
Paid: 7600.00
After Roto-Rooter inspected the drain line which could not get passed 35 feet from the cleanout, serviceman suggested for a new cleanout to be installed near the area where the camera could not pass, this at a cost of $1,450... [more]
-#IFEELTAKEN
Sewer Line Replacement Cost
Cost should be capped
Paid: 4550.00
In August of 2014, my husband need to be transported to the helicopter pad at the hospital and we received a bill for $4,550 and when we questioned why so much no one could provide a valid answer. The helicopter pad is less than ... [more]
-dkoz
Ambulance Cost
Cost of topo survey
Paid: 3800.00
Surveyor staked four corners and surveyed entire 4.95 acre lot at 2 ft contours in Issaquah, WA... [more]
-User in WA
Property Survey Cost