Simple Idea to Save Money With Staffing Firms

After 5 years in the staffing industry and 2 years as an owner of a staffing firm, my friends in staffing may have mixed feelings about this post. But hey, maybe they’ll be able to send out more contract recruiters!

Next time you need to reach out to a staffing firm to help fill your critical open positions, consider bringing on a temporary recruiter instead of paying direct-hire fees.

Staffing firms, especially in the current candidate market, rarely just have the perfect candidate for your opening(s) just sitting around. Rather, they will take down all the necessary job opening details, post the position, search their ATS, cold call and text candidates they find in resume databases and email blast lists of candidates – many of the same things that a temporary recruiter could do for you.

Assuming your openings are all direct-hire roles, staffing firms will charge between 20-30% of base salary for every direct hire you make from the candidates they refer, that cost quickly adds up.

Assuming your average salary is $50,000 and the staffing firm charges 20%, to be conservative and keep the math easy, that’s $10,000 per direct hire.

A temporary recruiter, depending on your market and the recruiters experience, may come with a billing rate anywhere from $28-60/hour (possibly more in big cities, but the direct hire fees will also be higher). If they just hire 1-2 people a month, they are already more than paying for themselves.

A temporary recruiter, provided with the right tools, will just cost whatever the hourly bill rate is from the firm who provided them. Compared to the cost of direct hires, once the temporary recruiter starts making hires, they will quickly pay for themselves. A good staffing firm will also stand behind the temporary recruiter’s performance

Stay tuned for my next article: how to negotiate with staffing firms – sorry Randstad, Robert Half and Vital Tech friends!