Buy-outs and Permanent Placements Policy
- The Agency agrees to provide personnel to the Client for temporary work or temp-to-hire assignments. The assigned personnel will possess the skills necessary to perform the duties described in the job description provided by the Client.
- Each temporary work assignment is purchased by the Client for a designated duration; however, a minimum of 1,000 work hours must be completed by the assigned employee to fulfill the requirements of the Staffing Agency.
- If, at any time, the Client wishes to hire the assigned employee before the completion of the required 1,000 work hours, the Client may do so by purchasing the remaining hours as a buy-out fee, in addition to a one-time permanent placement fee.
- Both the buy-out fee and placement fee shall be established prior to converting the employee (from the Staffing Agency to the Client), and agreed upon between the Staffing Agency and the Client, thereby satisfying all obligations and compliance by law owed to the Staffing Agency.
Direct Hire or "Permanent Placement"/ Recruitment Policy
- The client agrees to pay AAL Staffing Service, LLC. a Permanent Placement fee, not to exceed thirty percent (30%) of the employee’s first-year annualized salary.
Please note: A permanent placement fee is a one-time fee, typically a percentage of the new hire's first-year salary, paid to the staffing agency when a candidate is hired permanently. The standard range is between 15% and 30%, but it can vary based on factors like the position's seniority, industry, and the agency's specific fee structure.
- This fee compensates AAL Staffing Service LLC for services: recruiting, screening, assessments, placement, administration, and related costs incurred in providing the candidate for work.
How it works
- Percentage of first-year salary: The fee is calculated as a percentage of the candidate's gross annual salary.
- Example: For a $60,000 salary and a 20% fee, the placement fee would be $12,000.
- Timing of payment: Payment is typically due after the new hire starts their first day, though some contracts may have a different payment schedule, such as an upfront retainer or payments at different milestones.
- Included and excluded costs: The fee usually includes the base salary but excludes performance bonuses or equity grants.
Factors that influence the fee percentage
- Position seniority: Executive and highly specialized roles can have higher percentages, sometimes reaching up to 50%.
- Industry: Some industries may have different standard rates.
- Agency type: Agencies that specialize in certain areas, like online recruiting platforms or executive search firms, may have different fee structures and rates.
- Fee arrangement: The percentage can vary depending on the type of arrangement, such as contingency, retainer, or a hybrid model. This is why AAL Staffing Service, LLC. tends to be the best choice. We are open to negotiate and arrange our services to fit your business needs.