When companies rely on traditional recruitment agencies, the costs can quickly balloon out of control. Consider this: the average fee for a recruitment agency is 20% of a new hire's salary. For a $100,000/year position, that’s $20,000 spent just to bring one person on board.
Beyond the financial costs are the hidden inefficiencies. The time to hire using traditional agencies can average 30 to 45 days, which leaves companies at a competitive disadvantage when filling critical roles. Time spent coordinating with multiple recruiters, interviewing candidates, and onboarding new hires takes managers and teams away from their core duties.
With startups, every dollar and hour matters. For bootstrapped companies trying to navigate growth, there’s often a breaking point where the costs simply outweigh the benefits. Companies are increasingly turning to alternative models, like subscription-based recruiting services, that offer faster hiring timelines and significant savings.