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So after starting a staffing agency, how does this money come in? As a business that services almost all industries, staffing agencies make money from the fees paid for recruiting services. Their earnings come from providing workers to companies who are looking to employ them.

Retainer vs Contingency Fee Models Explained They will either charge a contingency fee or a retainer-based fee. Both can be based on a percentage of the candidate's negotiated compensation, or a recruitment firm may offer a flat-fee price.

The standard fee for recruitment agencies in Canada usually ranges from 15% to 30% of the candidate's first year's gross salary. The average is around 20%, which is generally charged for middle management roles. For highly specialised or senior executive roles, the rate can go as high as 30% or even more.

Employment agencies make money by charging the company that you work for, or they might take a percentage of your pay.

No, the majority of recruitment agencies do not charge the candidates for placement services. They charge their clients for the number of candidates they place in the organization ing to the annual CTC of the candidates. But, this happens only when the candidate serves the organization for some period.