RPO vs. Agency: The Math Nobody Shows You

Agency fees are simple: a percentage per hire, typically 18–25% of first-year salary. That simplicity is worth paying for at low volume — two or three hires a year doesn't justify infrastructure.

The crossover comes surprisingly early. At roughly eight to ten hires a year, an embedded RPO engagement — flat monthly fee, dedicated recruiters, your employer brand — starts beating per-hire fees on cost alone, before counting the quality effects.

And the quality effects are where the real money is: an embedded team compounds knowledge of your bar, your managers, and your funnel. Time-to-fill drops because sourcing starts before the requisition opens. Candidate experience improves because scheduling isn't an afterthought.

The honest answer for most growing companies is a hybrid: RPO for the volume tracks, retained search for executive roles, agency for the occasional specialist. The mix changes with your hiring plan — which is exactly why it should be revisited every planning cycle.