HR Staffing & Recruiting Pricing Guide 2025

Do you know how much hiring an HR recruiting or staffing firm costs? The price tag will depend on your requirements, so it's important to determine factors that influence fees and average rates before diving into a new project.

HR staffing and recruiting professionals are responsible for turning prospective job candidates into enthusiastic new employees.

Attracting new hires isn’t as straightforward as it sounds, which is why HR professionals commonly hire external recruiters to assist in the recruitment process.

This pricing guide will explore the types of HR agencies available, the cost of hiring a professional HR staffing company, and the factors that influence overall costs.

Finding the right candidate comes at a cost. Staffing and recruiting projects charge anything from a few hundred dollars to several thousand, depending on the scope of the hiring endeavor.

Large and small businesses can benefit from an agency's expertise. The cost of hiring a new candidate and the time to hire can be significantly reduced with expert recruiters' help.

It’s more difficult to flexibly scale your recruiting process if you’re only bringing on internal recruiters to meet your needs. Especially in busy hiring seasons, in-house recruiters and hiring managers will benefit from the support of a staffing or recruiting agency.

What is the Difference Between an HR Staffing Agency and HR Recruitment Agency

The terms HR staffing agency and HR recruitment agency are often used interchangeably, but they have distinct differences. 

• An HR staffing agency provides services that match job seekers with employers. It typically screens, interviews, tests, and manages the placement of workers in short-term or temp jobs.
• An HR recruitment agency focuses on helping organizations to recruit top talent through direct hire positions and permanent placements. They don't just provide assistance in finding candidates – they also manage the entire hiring process from start to finish, including screening resumes and conducting interviews.

Overall, an HR staffing agency is more focused on providing short-term job placements for applicants who are looking for a temporary position, while an HR recruitment agency is focused on sourcing high-quality candidates for long-term job placements within organizations. While staffing and recruitment agencies provide different types of services, they will have similar considerations for HR pricing. 

5 Reasons Why Companies Invest in HR and Recruitment Agencies in 2025

There’s a reason that countless companies rely on external recruitment agencies to staff their teams with top talent effectively. Here are a few of the many advantages of passing staffing tasks to an agency:

1. Save time and resources: Human resource management is a broad and challenging area, often requiring a significant investment of resources and internal employee time. Recruiting is just one part of what HR employees manage, so outsourcing these tasks to an external provider effectively removes it from internal teams’ plates. Companies without designated recruiters can now give time back to hiring managers to focus on core business operations.
2. Specialized expertise: External recruiters can offer a wide range of services that may not be available in-house, including recruiting, training, and employee development. Further, expert agencies are well-versed in applicant tracking systems, job boards, and social media outreach, improving the candidate experience and likelihood of attracting talent.
3. Navigate laws and regulations: Employment laws and regulations are complicated and are constantly changing, so it can be challenging to ensure you’re abiding by everything yourself. While external costs may deter some from investing in a service provider, an external recruiting agency can keep your company in compliance with all relevant laws and regulations, saving you from costly legal challenges and penalties.
4. Risk management: Outsourcing HR and staffing functions can help a company mitigate risk by transferring specific responsibilities to a third party. This can include risks associated with recruiting, hiring, and managing employees and legal and compliance risks.
5. Reduce hiring costs: Maintaining an in-house HR department can be costly without being able to scale at the same pace as outsourced teams. Especially for small business owners without an in-house HR department, talent acquisition is streamlined and more cost-effective with professional help.

Businesses of all sizes and industries can shape their recruitment strategy around external agencies. Their experience engaging top talent and seasoned knowledge of industry complexity make them ideal execution partners for recruitment tasks.

Average Cost of Staffing and Recruiting by Project Type

Many factors affect the cost of a staffing or recruitment effort. The type of service provided has a direct impact on the resources and time it will take to hire, so this is one area where costs fluctuate. 

Note: Price ranges above are in U.S. dollars.

This table shows how pricing varies depending on which type of HR service you seek. 

Types of HR Recruiting Pricing Models

Recruitment expenses will vary with the complexity and demand for the positions you are staffing.

HR and staffing agencies typically use one of three main pricing models: contingency, retained, and contract/project-based.

• Contingency: Under this model, clients pay their agency once it successfully places a candidate with the client company. This agency fee is typically a percentage of the candidate's first-year salary. This model is mutually motivating and beneficial for the agency and the client — the agency must source the best candidates quickly because it gets paid only if the candidate is hired.
• Retained: Under this model, the agency is paid a retainer fee upfront to search for a specific role. Like contingency, agency fees are often a percentage of the candidate's first-year salary. These fees are paid whether or not the agency successfully places a candidate. The advantage of this model is that the client company gets exclusive access to the agency's resources and expertise, which can result in a faster and more successful search.
• Contract/Project-based: Under this model, the agency is hired on a contract basis to provide a specific service, such as recruiting, training, or employee development. The agency is paid a flat fee for the service provided. This model is typically used for individual projects or efforts with a set timeline. The advantage of this model is that the client company knows exactly what it is paying for and can build budgets around the mutual understanding of the agency.

Outside of these core three pricing models, some agencies may charge additional recruitment fees for extras such as background checks, pre-employment testing, or other assessments. While potentially increasing upfront costs, these additional services can offer significant value in ensuring a thorough vetting process, ultimately saving the company from future issues and additional expenses.

For instance, conducting comprehensive background checks can help prevent costly hiring mistakes by verifying candidates' qualifications and past employment history. Pre-employment testing, including skills assessments and personality tests, can ensure that new hires are technically proficient and a good cultural fit for the organization.

Understanding the pricing model and any additional fees before engaging with an agency is essential for companies' budgeting and developing priorities. This clarity helps prevent unexpected costs and allows businesses to plan their hiring expenses more effectively, ensuring they allocate resources where they are needed most.

What Services Can HR Staffing and Recruiting Companies Provide in 2025?

HR and staffing agencies can provide various services, many outside the realm of the recruiting process itself. Here’s a look at what external recruiting team members can bring to the table:

• Recruiting: Agencies find and attract qualified candidates for open positions. This can include creating job descriptions, sourcing candidates on job boards or LinkedIn, conducting initial screenings and interviews, and giving guidance on salary and benefits.
• Hiring: Agencies assist with the hiring process by handling background checks, reference checks, and pre-employment screenings for relevant job openings. Past the point of hire, their scope of work could also involve drafting job offers and onboarding.
• Staffing: Agencies can provide temporary or permanent staff on a contract basis. This is ideal for companies looking for quick ways to scale up for a heavy-lift project or during a busy period.
• Training and development: Agencies step in to offer professional development trainings or resources to aid them in career advancement. Services some agencies may offer include leadership development, technical training, and compliance training.
• Employee relations: Agencies also extend performance management, employee engagement, dispute resolution, and more. These services are ideal for when disputes would benefit from a third party’s presence.
• Compliance: Federal, state, and local employment regulations can be complicated, but agencies can make sure clients remain compliant. They achieve this by taking a consultatory position: giving guidance on HR policies, conducting audits, and offering compliance training on HR procedures.
• Outplacement services: Layoffs and reduction in force processes can be taken on by an external agency. In addition to the basic RIF process, HR agencies may also offer career counseling, resume writing, and job placement services.
• Payroll and benefits administration: Payroll and benefits can be spearheaded by agencies. This includes enrolling employees in benefits plans, tracking attendance, and processing payroll.

Recruiting and staffing agencies do much more than just streamline hiring and upload job postings. Rather, they can be an integral HR partner in your employee attraction and retention efforts. These are just a few examples of the services that HR and staffing agencies can provide.

Of course, not all agencies will offer everything on this list. Most companies classified as HR staffing and recruiting agencies will focus most heavily on the recruitment process. Still, it may benefit your company to inquire about additional services an agency can provide.

Factors that Affect Recruitment Costs

Some factors tend to drive up the cost of a recruitment effort more than others.

These are the main drivers of HR and staffing agency pricing:

• Type of service: Different services (ex. staffing vs. recruiting) will have different costs associated with their activities. In this instance, recruiting services may be more expensive than staffing services because the resourcing need is greater and complexity of the process is higher.
• Industry: Some industries are more technical than others, often limiting the candidate pool for certain positions. This drives up costs. For example, recruiting for highly specialized roles in healthcare or tech may be more expensive than other recruiting efforts.
• Location: Recruiting for roles in major metropolitan areas may be more expensive than in other areas due to a higher cost of living in those locations.
• Level of service: The scope of work is a huge driver of cost. Basic recruiting service will almost always be less expensive than a full-service recruiting package (especially those that include additional services such as background checks and pre-employment testing).
• Number of hires: The volume of employees that need to be hired is going to drive up the time and resources it takes to fill associated roles.
• Market demand and competition: The number of qualified candidates available in the market can also impact pricing. For instance, if the skills for a role are in high demand but supply of candidates with those skills is limited, it may be more expensive for companies to fill gaps.
• Reputation and experience: Recruitment agencies with stellar reputations and decades of experience might charge more than their greener counterparts.
• Size of the agency: Smaller agencies may charge less than larger agencies due to lower overhead costs.

As stated above, location is one of the main drivers of pricing for HR, recruiting, and staffing services.

Local costs vary on both a regional and international level. For instance, agencies in smaller towns may charge less than those operating in large cities. Additionally, agencies in the United States might charge more than agency alternatives in Eastern Europe.

Businesses interested in outsourcing HR work can further break down the quality of shortlisted agencies on Clutch. Online reviews and company overviews should guide interested companies toward the right agency for their needs.

Recruitment Tools Impact the Cost of Recruiting

Recruitment software is hugely important in streamlining the hiring process, but it may also increase the cost of staffing work in some instances.

Looking to introduce a new tool to your ecosystem? Here are a few of the top options to try:

• Greenhouse: A powerful recruitment tool that provides multifaceted features, including job posting management, candidate communication, interview scheduling, and performance analytics. The platform is highly customizable, allowing organizations to tailor its features to their specific hiring needs and workflows.
• JazzHR: A recruitment software that offers a range of features, including job posting, applicant tracking, and collaboration tools that make it easier for hiring teams to work together efficiently.
• Workable: A tool that offers applicant tracking, candidate sourcing, and advanced reporting capabilities, making it suitable for organizations of all sizes. One of its standout features is the ability to post job listings on multiple job boards with just a few clicks, significantly broadening the reach of your recruitment efforts.
• Monday: A project management tool that seamlessly integrates with HR solutions. It allows HR teams to streamline candidate tracking, interview scheduling, and team collaboration all in one place. Users can create dedicated boards to manage different stages of recruitment, ensuring all team members are on the same page regarding candidate progress.
  

Recruiting Budgets Are Core to Paying the Right Price

While HR recruiting and staffing pricing vary, a solid recruiting budget is a common denominator of successful engagements. Budgeting will help keep you and your selected agency on the same page while being transparent about expected spending.