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A recruitment agency invoice is a type of bill that outlines the total expenditure owed by a company for the successful hiring of one (1) or more employees by means of the recruiting agency’s efforts. Recruitment agencies price their services via a placement fee that is based upon the recruited employees’ yearly salary. Generally speaking, they negotiate either retainer or contingency-based contracts with the companies being served. Placement fees typically range anywhere from 15% to 25%+ of the hiree’s yearly salary.

How do Recruitment Agencies Work?

Recruitment agencies take the time-burdening role of finding talent for new and established companies by creating job postings, sorting through resumes, providing employers with lists of strong applicants, conducting digital and in-person interviews, negotiating contracts, and other administrative and labor-intensive tasks. In exchange for these services, recruitment agencies are paid a large percentage of the newly-placed employee’s first-year salary. All in all, the following is a brief outline of the recruitment process:

  • The recruitment agency is provided with a list of vacant positions
  • Recruiters conduct in-depth research to identify what qualities make an ideal candidate for the job
  • CVs “course of action” (similar to resumes) are sifted through to identify the most applicable talent. Those selected are put into a list and sent to the employer
  • The agency then interviews those requested by the employer and negotiates an employment contract if the candidate is deemed to be a good fit

If a placed employee is hired full-time from a contracted position (called a “temp to perm” job), recruiters can “double-dip” by receiving a commission fee for both introducing the employee to the position and converting them to the position permanently.

Recruitment Agent Salary

The salary of a recruiter is mainly based upon the seniority and value of the position they are interviewing for. The average yearly salary and hourly rate for recruitment agents are the following:

  • Salary: $53,255/yr (source: PayScale)
  • Hourly rate: $24.35/hr (source: PayScale)