How Much Does It Cost to Outsource Recruitment for Small, Mid, and Large Businesses in the United States?

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. Below is a table that defines small, mid-market, and large enterprises based on employee count, with examples to illustrate each:

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.

Recruitment Outsourcing Costs for Large Enterprises (500+ employees)

Typical Needs:

Large enterprises often deal with high-volume hiring, complex job roles, and strict compliance standards. Positions may range from senior leadership and specialist engineers to entire customer support teams and regional managers.

Estimated Cost (U.S. Market):

• Full RPO model: $10,000 – $50,000+/month, depending on the scope
• Per hire for executive roles: 20%-30% of the annual salary
• Annual contracts: $100,000 – $500,000+ for high-volume or enterprise-level service agreements

What You Get:

• Onsite or embedded recruiters: Full-time recruiters who work closely with your HR team, often stationed at your offices.
• Workforce planning and analytics: Strategic insights on hiring trends, gaps, and forecasting needs.
• Diversity and compliance initiatives: Many providers help large companies meet diversity targets and adhere to EEOC and other hiring regulations.
• Advanced reporting and integrations: Dashboards and tools that integrate with your HR systems to provide data-driven hiring insights.

Things to Consider:

• Enterprise-level recruitment outsourcing is best for companies needing consistent hiring across departments or geographies.
• Choose a partner that can deliver both strategic recruitment consulting and scalable operational support.

Other Cost Factors to Keep in Mind

Beyond business size and basic pricing models, several additional factors can influence the final cost of outsourcing recruitment:

1. Industry Specialization: Hiring for niche industries (e.g., biotech, fintech, cybersecurity) often requires recruiters with specific expertise, which can raise service fees.
2. Geographic Location: Costs may vary based on where your company operates or is hiring. Urban centers like New York or San Francisco tend to have higher recruiting costs than smaller cities or rural areas.
3. Seniority and Skill Level of Roles: Executive and highly skilled technical positions typically command higher outsourcing fees due to the complexity of sourcing and the talent scarcity.
4. Time-to-Fill Requirements: Expedited hiring timelines may require additional resources or priority service charges.
5. Technology Integration Needs: If you require integration with ATS (Applicant Tracking Systems) or custom recruitment tech stacks, providers may charge setup or compatibility fees.
6. Additional Services: Services like onboarding assistance, cultural fit assessments, background checks, or relocation support may be offered as add-ons at an extra cost.

Factoring in these considerations early in your budgeting process will help you avoid surprises and select the most suitable recruitment outsourcing partner for your goals. This breakdown should give you a clearer view of what recruitment outsourcing may cost your business – whether you’re just starting out or managing a multi-branch organisation. As with any investment, the key is choosing the right partner who understands your specific business size, goals, and challenges.

Related article: Understanding the common types of RPO services

Ready to Simplify Your Hiring?

Whether you’re a small business or a large enterprise, we can help you recruit the right people faster and more efficiently. Get in touch with De Vore Recruiting today to learn how our tailored recruitment outsourcing services can save you time and money.