Recruitment Costs – The Mystery of HR Recruitment Agency Pricing

Have you ever wondered why many HR recruitment agencies don’t publish recruitment costs on their websites or promotional materials? It’s not uncommon for employers to struggle to find out how much it would cost to use a recruitment agency for their needs.

So why do HR recruitment agencies keep their pricing a secret. Is it a strategy to allow flexibility on price dependent on the client, or is it due to the fear of being undercut by competitors? Or is it just how it’s always been done?

At PEEQ, we embrace transparent pricing because we understand how frustrating it is when you can’t find out how much something costs, quickly.

However, we appreciate that this is by far from the ‘done thing’.

In this article, we’ll explore the reasons why some HR recruitment agencies might not publish their recruitment costs and what impact this has on businesses who are looking to make a hire.

Reasons Why HR Recruitment Agencies Keep Their Recruitment Costs Hidden

Greater Flexibility on Price

One reason why HR recruitment agencies may not publish their recruitment costs is because they can quote a different fee to customers depending on a series of key factors.

For instance, whether the business is a NFP, how challenging the role is to fill, the availability of talent, the current bandwidth of their team, the time of year, whether there’s an existing relationship with the customer, and in all honesty, what they think the hiring business might be able to pay…

A Fear of Being Undercut by Competitors

One of the main reasons that HR recruitment agencies don’t disclose their fees is because they’re worried that their competitors will see what they charge. The fear is that their competitors might swoop in and offer their client an advantageous price. However, most businesses already have a sense of what their competitors are charging and if a customer is driven solely by price, then they’re perhaps not the right customer for a business that strives to deliver a quality recruitment service.

A Fear of Customers Thinking They’re Too Expensive

Many HR Recruitment Agencies worry that by openly stating their prices, prospective customers might think they’re too expensive and choose not to work with them. From our perspective, being up front with recruitment costs and allowing customers to deselect before anyone’s time is wasted is a good thing! Consumers today expect information as and when they need it. No one likes having their time wasted.

Impact on Employers 

Difficulty in Comparing and Choosing Recruitment Agencies

When HR recruitment agencies don’t publish their recruitment costs, it can be difficult for employers to compare and choose the right agency for their needs. Without knowing the pricing, it’s impossible to determine if the agency is within their budget or offers competitive pricing. This lack of transparency can lead to frustration and confusion, ultimately resulting in lost business for the recruitment agency.

Unexpected Costs and Lack of Transparency

When HR recruitment agencies don’t disclose their recruitment costs, it can also lead to unexpected costs. Clients may be surprised by hidden fees or charges, leading to a lack of trust and transparency. This can ultimately damage the reputation of the recruitment agency and lead to negative reviews or word-of-mouth.

FAQs

Why don’t HR recruitment agencies publish their recruitment costs?

HR recruitment agencies may not publish their recruitment costs for several reasons, such as the desire to charge different fees to different businesses, the fear of competitors seeing their pricing, and due to concerns that customers will think they’re too expensive. However, this lack of transparency can make it difficult for employers and job seekers to compare and choose the right agency for their needs, potentially leading to unexpected costs and a lack of trust.

Can I negotiate the pricing with a HR recruitment agency if they don’t publish their rates?

It’s always worth asking if an HR recruitment agency is open to negotiation on pricing. However, keep in mind that some agencies may have a set pricing structure and may not be willing to negotiate. It’s also important to clarify upfront what services are included in the pricing and whether there are any hidden fees or charges.

How can I ensure transparency and fairness when working with a HR recruitment agency that doesn’t publish their pricing?

To ensure transparency and fairness, it’s important to ask upfront about the agency’s pricing structure, what services are included, and whether there are any additional fees or charges. You can also ask for references from previous clients and check online reviews to get a sense of the agency’s reputation. Finally, be sure to get a written agreement that outlines all the terms and conditions, including pricing, before engaging the agency’s services.

Summary

In conclusion, the mystery of why many HR recruitment agencies don’t publish their recruitment costs can be attributed to various reasons. However, this lack of transparency can have a negative impact on employers and job seekers, leading to difficulty in comparing and choosing the right agency, unexpected costs, and a lack of trust.