How Do Staffing Agencies Make Money? (Simple Breakdown)
Staffing agencies play a key role in helping businesses find talent fast — but many clients and candidates still wonder how these agencies actually earn revenue. Here’s a simple breakdown.
1. Placement Fees (Permanent Hiring)
When a staffing agency helps a company hire a full-time employee, they charge a one-time placement fee.
This fee is usually 15–25% of the candidate’s annual salary.
Example:
If a candidate joins at ₹6,00,000/year → the agency earns around ₹90,000–₹1,50,000.
2. Markup on Contractor/Temp Staffing
This is where most staffing firms make steady, recurring income.
Here’s how it works:
- Agency pays the contractor: ₹800/hour
- Agency bills the client: ₹1,000/hour
- The ₹200/hour difference is the agency’s profit.
This model makes staffing predictable and scalable.
3. RPO (Recruitment Process Outsourcing) Fees
Some companies outsource all or part of their hiring to an RPO provider like Curiohire.
RPO revenue usually comes from:
- Monthly subscription fees
- Cost-per-hire fees
- Project-based hiring fees
4. Payroll & Compliance Services
Agencies earn by managing:
- Payroll
- HR documentation
- Tax compliance
- Onboarding
Clients pay either a per-employee fee or a percentage markup.
5. Value-Added Services
Staffing agencies may also offer:
- Background checks
- Skill assessments
- Training
- Workforce consulting
These generate small but consistent revenue streams.
Why Companies Choose Curiohire
Curiohire simplifies talent acquisition for businesses by offering:
- Faster hiring
- Compliance-ready staffing
- Transparent pricing
- RPO support tailored to your industry
📞 Book a Strategy Call: https://calendly.com/recruiter7812/30min
🌐 Website: www.curiohire.com
📧 Email: recruiter7812@gmail.com
🔗 LinkedIn: https://www.linkedin.com/company/curiohire
