We asked Chelsea Livingston, KMA’s Recruiting Services Manager, to explain the two models for pricing our recruiting services. Here is our Q&A with her.
Q: KMA offers two pricing models for recruiting. Can you briefly explain how each works?
KMA continues to offer our traditional hourly rate model for recruiting work. In this model, hours worked = hours billed. A client is charged only for hours directly related to filling an open position (reviewing resumes, phone screening applicants, scheduling interviews, etc.). In this model, an additional marketing fee is charged to competitively post on a variety of job boards and draw in qualified applicants.
We also offer a retained search model, which is a fixed-fee structure based on the role’s complexity and projected timeline. It provides a comprehensive, start-to-finish solution for critical or executive-level hires. This can work well for clients with a specific budget and don’t want to worry about the number of hours that it may take to fill a more challenging role. The retained search pricing includes all work done on the project, including any marketing fees, and includes a complimentary market assessment to make sure the pay rate for a role is competitive in the current job market.
Q: How do these models differ from traditional recruiting price structures?
Traditional recruiting price structures are based on a percentage of the hire’s first year salary (typically 20-30%). This structure can lack transparency and lead to inflated costs. With KMA, clients have more control: the hourly model aligns costs directly with our efforts, and the retained model offers a predictable, upfront fee. Both options are designed to ensure value and align with client needs, rather than simply maximizing fees. Offering both options allows our clients to tap into KMA’s recruiting services for a wide variety of roles (entry level, manufacturing, non-profits, etc.), including executive level roles.
Q: When partnering with a new client or project, how do you decide whether to use the hourly or retained search pricing model?
The decision depends on the client’s hiring goals, budget, and the nature of the role:
- For single, high-priority hires or executive hires, we recommend the retained model for clients who want to know exactly what their spend will be. This search model also includes a guarantee, which can offer additional peace of mind for many clients.
- For ongoing recruiting needs or high volume (multiple roles) recruiting, the hourly model offers flexibility and cost efficiency.
We collaborate with the client to determine which model best supports their goals and timeline.
Q: What sets KMA’s recruiting services apart from competitors?
The first thing that sets KMA apart from our competitors is our incredibly talented group of recruiting consultants. They have a wide variety of experience recruiting at all levels and in all industries. We view ourselves as an extension of the client’s team, maintaining open communication and transparency, and we prioritize finding candidates who not only meet the technical requirements, but also, critically, align with the company’s culture.
Partnering with KMA on a recruiting project means you also have access to our Human Resources and Compensation consultants. This allows KMA to continue to work with our clients after a search is closed for things like compensation assessments, onboarding assistance, open enrollment, employee development and training.
Q: How do KMA’s pricing models provide better value and flexibility for clients?
Our models eliminate the one-size-fits-all approach. The hourly model allows clients to stay within budget for less intensive roles or ongoing needs, while the retained model provides predictability for executive level and critical roles. Both ensure that clients only pay for the value they receive, not inflated fees tied to salaries.
So many of our clients are repeat customers, coming back to KMA each time that they have a new open position. This speaks to the quality of the work that we do as well as the value and flexibility of our different pricing models.
Chelsea, thank you for explaining the unique approach KMA takes with recruiting and how we can offer better value for our clients!