What Contractors Get Wrong About Staffing Agency Fees (And What You're Actually Paying For)

The number one objection contractors raise about using a staffing firm is the fee. “We can post the job ourselves and save the money.” Sometimes that’s true. More often, it’s an incomplete calculation.

Here’s what you’re actually paying for — and a realistic comparison of DIY hiring vs. agency placement.

What’s Inside a Staffing Fee

For direct placement, a typical trades staffing fee runs 15–22% of the candidate’s first-year salary. At $60,000 annual salary, that’s $9,000–$13,200.

That fee covers:

  • Active candidate sourcing — not just posting and waiting; identifying and approaching qualified candidates who aren’t actively job searching
  • Credential verification — confirming every certification is current and legitimate before the candidate reaches you
  • Pre-screening and interviews — Bravo conducts a structured interview before you see a single resume
  • Reference checks — we talk to former supervisors, not just the references the candidate picked
  • Offer negotiation and closing — we handle the back-and-forth so you don’t lose a candidate at the finish line
  • 90-day replacement guarantee — if the placement doesn’t work out, you’re covered

The Real Cost of DIY Hiring

Most contractors underestimate what it costs to hire on their own. Here’s a realistic tally for a single journeyman electrician hire:

ItemEstimated Cost
Job board postings (Indeed, LinkedIn, ZipRecruiter)$500–$1,200
Internal recruiter or manager time (20–40 hrs at $50/hr)$1,000–$2,000
Background checks, MVR reports$150–$300
Lost productivity during 6–12 week open position$5,000–$15,000+
Bad hire turnover cost (if hire doesn’t work out)$10,000–$20,000
Total DIY risk$16,000–$38,000+

A staffing fee of $10,000–$13,000 is often the cheapest option on the table — especially when it comes with a replacement guarantee.

Where the Fee Math Changes

There are situations where going direct makes sense:

  • You have a strong internal recruiter and a robust candidate pipeline
  • You’re hiring at a volume where the per-placement fee adds up significantly
  • You’re filling a lower-skill, high-turnover position where the quality bar is less critical

Bravo is direct with clients when this is the case. If you’re filling 20 entry-level positions a month, we’ll tell you that temp staffing — not direct placement — is probably the right model.

What You’re Betting On With DIY

When you skip the agency, you’re betting:

  • Your job post reaches the qualified candidates (most are passive, not actively searching)
  • Your screening process surfaces red flags before the offer
  • The candidate you select doesn’t leave in the first 90 days
  • Your manager’s time investment is actually lower than the fee

Sometimes that bet wins. But in a market where licensed tradespeople have multiple offers within days of becoming available, the probability of a fast, quality, self-sourced hire is lower than it’s ever been.


Want to run the math on your specific situation? Book a 15-minute call — Bravo will give you an honest assessment of whether an agency placement makes financial sense for your current hiring need.