Recruitment outsourcing has become a popular strategy for businesses across the United States looking to save time, improve hiring efficiency, and access top talent without overburdening their internal HR teams. Whether you’re running a small startup or managing a large enterprise, outsourcing recruitment can help fill roles faster and often more cost-effectively.
However, the cost of outsourcing varies greatly depending on your business size, hiring volume, and the complexity of the roles. Before we dive into the cost breakdown, it’s helpful to understand how businesses are typically categorized by size.
Whether you’re a small business owner or part of a large corporation, this guide is designed to help you understand the real costs behind outsourcing recruitment — and make more informed decisions for your business. Note for Business Owners:
- Per hire: A fee charged for each individual hire made, usually calculated as a percentage of the hired employee’s annual salary.
- Flat fee: A fixed, one-time amount charged for hiring a single candidate, regardless of their salary.
- Project-based (3–5 hires): A bundled cost for handling the recruitment of multiple roles under one campaign or timeframe, often at a discounted rate compared to individual hires.
Recruitment Outsourcing Costs for Small Businesses (1–50 employees)
Typical Needs:
Small businesses often face occasional hiring needs, usually when replacing a departing employee or during periods of growth. The most common positions include administrative assistants, sales representatives, customer service staff, junior marketers, and entry-level IT or support roles.
Estimated Cost (U.S. Market):
- Per hire: 10%-20% of the new hire’s annual salary
- Flat fee: $3,000 — $7,000 per hire
- Project-based (3–5 hires): $10,000 — $20,000 total
What You Get:
- Candidate sourcing and screening: The recruitment provider will handle job postings, candidate outreach, and pre-screening applicants to ensure only qualified candidates move forward.
- Basic interview coordination: They’ll manage scheduling between candidates and your team, saving you time.
- Optional job ad writing and reference checks: Some providers offer these services as part of the package or for an additional fee.
Things to Consider:
- A per-hire model is often more practical for small businesses that don’t hire frequently.
- Choose a provider familiar with small business or startup dynamics. They tend to be more flexible and cost-conscious, offering services that align with limited budgets and internal resources.
Recruitment Outsourcing Costs for Mid-Market Enterprises (51–500 employees)
Typical Needs:
Mid-market companies usually have consistent hiring needs across multiple departments. These businesses may need to fill roles such as HR specialists, mid-level managers, software developers, marketing leads, and operational supervisors.
Estimated Cost (U.S. Market):
- Per hire: 12%-18% of the candidate’s annual salary
- Monthly RPO model: $5,000 — $15,000 per month (depending on volume and complexity)
- Volume hiring project (10–30 hires): $25,000 — $50,000+
What You Get:
- End-to-end recruitment support: Includes everything from candidate sourcing and screening to interview scheduling, offer management, and onboarding coordination.
- Employer branding assistance: Helps improve how your company is perceived by job seekers, increasing application quality.
- Dedicated recruiter or team: A recruiter who focuses solely on your account, often embedded within your hiring process.
Things to Consider:
- A monthly RPO (Recruitment Process Outsourcing) model is more cost-effective if you’re hiring regularly.
- Look for agencies with experience supporting growing businesses. They can scale services up or down depending on your hiring pace.
Continue reading here: How Much Does It Cost to Outsource Recruitment for Small, Mid, and Large Businesses in the United States?
Recruitment Process Outsourcing | rpo recruitment | NBSRecruitment Process Outsourcing
