Understanding the Real Cost of Staffing Support
If you’re a business in Texas considering outside help to fill open roles, one of your first questions is likely: What is the cost to hire through a staffing agency in Texas?
While costs can vary depending on the role, region, and service level, working with a staffing firm can ultimately save money by reducing time-to-fill, improving retention, and minimizing hiring risks.
Let’s break down what you’re really paying for — and why many companies in Houston, Dallas, Austin, and beyond view staffing agencies as an investment in workforce success.
What Are You Paying For?
When you hire through a staffing agency, you’re not just paying for a résumé. You’re paying for:
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Recruiter expertise
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Candidate sourcing and screening
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Job ad placement and marketing
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Skills assessments and reference checks
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Compliance and onboarding administration
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Payroll and benefits (for temps/contractors)
Agencies act as your outsourced HR partner, especially valuable when internal teams are short on time or resources.
Typical Fee Structures
1. Temporary or Contract Staffing
For temp roles, the agency pays the employee and handles all tax withholding, insurance, and administrative burden. The client is billed an hourly rate.
Example:
Let’s say the employee is paid $20/hour. You may be billed $30/hour. The additional $10 covers taxes, benefits, insurance, and the agency’s service margin.
2. Temp-to-Hire
You start with the employee on a temp basis (on the agency’s payroll). If you decide to convert them to full-time, there may be a one-time conversion fee, often prorated based on time worked.
3. Direct-Hire / Permanent Placement
The agency sources and screens candidates for your permanent role. If you hire one, a placement fee is charged, typically a percentage of the candidate’s first-year base salary.
Industry standard in Texas:
Ranges from 20% to 30% of the first-year base salary depending on role type, seniority, and specialization.
Example:
For a $60,000/year job, a 20% fee equals a $12,000 placement fee.
Factors That Influence Cost
1. Role Complexity or Specialization
Niche roles in IT, engineering, or healthcare usually carry higher fees due to the difficulty and time involved in sourcing.
2. Volume of Hiring
Companies that hire in volume or establish long-term contracts often receive discounted pricing structures.
3. Speed Required
Rush or priority searches may involve premium pricing to quickly dedicate recruiter bandwidth.
4. Region and Market Conditions
Competitive markets like Houston and Austin may influence both pay rates and markup to remain competitive and retain talent.
Is It Worth It?
When comparing the cost of hiring through a staffing agency to DIY recruiting, it’s important to consider the hidden costs of unfilled roles or bad hires.
Consider these savings:
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Time: Agencies often reduce time-to-fill by weeks
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Productivity: Open positions can cost thousands in lost output
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Compliance: Agencies manage complex HR and legal requirements
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Retention: Pre-screening leads to better long-term fit
For many employers, paying a fee upfront is more cost-effective than experiencing turnover, burnout, or slow hiring cycles.
Why Businesses Choose Burnett Specialists
At Burnett Specialists, we offer flexible staffing solutions designed to fit your budget and business model—whether you need a receptionist in The Woodlands or a team of supply chain analysts in Houston.
We specialize in:
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Administrative and office support
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Accounting and finance
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Legal and paralegal staffing
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Engineering and IT
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Supply chain and logistics
With offices across Texas and more than 50 years of experience, we help companies reduce costs, streamline hiring, and secure qualified talent — fast.
Real ROI From Strategic Hiring
The cost to hire through a staffing agency in Texas isn’t just about the fee; it’s about how much you gain from finding the right person, faster. When you factor in the time saved, risk reduced, and quality delivered, partnering with a reputable firm is a smart workforce strategy.
Need to Fill a Role Fast—Without Sacrificing Quality?
Contact Burnett Specialists today to learn more about our pricing structure, services, and how we can help you find the right hire the first time.
