Pricing Breakdown
Obviously the most popular question is this: “How does your pricing structure work if we decide to use you?” We thought it may be easier for our prospective clients to see their options and how it all works. So here we go:
Direct vs. Outsourced Placement
Direct Placement
The new employee goes to you DIRECTLY and is never on the IO payroll. The recruiting fee is charged in two installments at the beginning of the assignment.
Outsourced Placement
Your new employee starts on the IO Payroll. The employee starts as an IO W-2 employee and the payment to IO is made as an up-charge to the employee’s hourly rate. If the company keeps them the number of required hours (which vary between 500-1000 hours), there is only an $800 fee to transition them to the company’s payroll.
Direct Placement Recruiting Fees
For Full-time placements, the cost is usually 18-21% of the first year’s salary. This fee percentage depends on the position needed and if the search is retained or contingent.
For Part-time placements, it is the same as above with a minimum of $7000.
Outsourcing Placement Recruiting Fees
Employees will be placed as W2s on the IO payroll. Just like you would have to, we have to pay taxes and insurances on all our employees.
Our Formula: Employee Pay Rate x 1.18 (18% for taxes and insurances) + $7-12/hr (IO Fee) = Your Bill Rate
Pay Rate of Employee: The rate to the employee
Details on Taxes and Insurance: Employer taxes (7.5%) + Workers Comp. + Employment Practices Insurance + General Liability Insurance + Professional Liability Insurance + Abusive Acts + Auto Liability Insurance + Employment Practices Insurance + Crime Insurance = TOTAL taxes and insurances (cost to us, and not profit) – 18%
IO Recruiting Fee: The recruiting fee depends on how long the required hours range from 700-1,000 hours — $8-12/hr
We know that can get complicated so here is an example if you were going to pay a pay rate of $30/hour:
$30 (pay rate) + $5.40 (taxes and insurances) + $10/hr (IO fee for 750 hours) = $45.40 bill rate for the first 750 hours.
After that , the person can go on your payroll for $30/hr after an $800 buyout fee