How Much Does a Recruitment and Selection Agency Cost?

How Much Does a Recruitment and Selection Agency Cost?

Do you want to know what the average costs of recruitment are in last year? What does recruitment cost? What do you get for a recruitment fee? We try to answer all these questions as best as possible. So read on quickly.

The average cost of recruitment

The costs of recruitment have risen at many agencies in recent years. As a result of which? Due to the tightness on the labor market. After all, recruitment agencies are necessary and there are also agencies that go for the short term. Last year (as in previous years), we conducted research into recruitment costs in Egypt with our clients, but also through internal research. And we have not made a distinction between sector specializations.

On average, recruitment costs are between 20% and 25% of the gross annual salary of a placed candidate (including holiday pay and any bonus). We do see outliers downwards and upwards. We note that the cheapest agencies are between 10% and 15% and the most expensive agencies are between 25% and 35%.

What are the costs for deploying a Headhunter?

A headhunter is deployed for vacancies where there is little supply of candidates on the labor market. That is why a headhunter is quite expensive. You often pay between 25 and 35% recruitment fee for a headhunter. The advantage is that a headhunter often knows how to take the right path to track down high-quality candidates.

What do you get for a recruitment process?

If all goes well, you will receive a candidate who meets the job requirements you set as a client. But in practice it sometimes happens that a candidate does not function completely properly. It is also possible that a candidate leaves within a short period of time, for whatever reason. What you get for your fee varies widely.

That is why it is wise for you as a client (but also as an agency) to make good agreements about expectations. This prevents disappointment afterwards.

With one, as an employer you receive a sidewalk guarantee. This means that you can make do with your money, even if someone moves within the probationary period. But with the other, you can rely on a guarantee scheme even after four or five months. And then you might even get half of the fee back. How beautiful is that?