More
Industry Insights
Leadership Trends
HR Insights
Melissa Hoegener
26 August 2025
"Why are recruiting fees so high?" It's the question that comes up in nearly every conversation with supply chain hiring managers. At 20-30% of a candidate's first-year salary (sometimes reaching 40% for specialized executive roles) recruiting fees can seem substantial at first glance.
But here's what happened last week that perfectly illustrates why these fees exist: Two companies told us offers were "on the way," then pulled them. Another candidate accepted an offer, then backed out at the last minute. Weeks of work resulted in zero placements. This volatility isn't unusual—it's the reality of recruiting, and it's exactly why the fee structure exists.
The recruiting fee isn't just a number pulled from thin air. It's a carefully calculated investment that prices in risk, time, and most importantly, speed to certainty in an unpredictable market.
When you partner with supply chain recruiters, you're not just paying for a resume delivery service. Here's what that investment includes:
Weeks of sourcing and outreach: Professional recruiters spend 15-20 hours per week actively sourcing candidates through multiple channels—industry networks, passive candidate databases, and targeted outreach campaigns. This isn't posting a job and waiting for applications.
Rigorous screening and interviewing: Every candidate undergoes comprehensive evaluation, including technical assessments, cultural fit analysis, and motivation evaluation. This pre-screening process ensures only qualified, genuinely interested candidates reach your interview stage.
Reference checks and market intelligence: Thorough background verification and salary benchmarking provide you with complete candidate profiles and competitive market data for informed decision-making.
Offer alignment, negotiation, and closing: Expert negotiation services that balance candidate expectations with company parameters, often saving thousands in avoided counteroffers and ensuring smooth transitions.
Perhaps most valuable is the ability to keep processes moving quickly, even when setbacks occur. When a candidate backs out or an offer gets pulled, experienced recruiters immediately activate backup candidates and alternative strategies, minimizing delays that could extend vacancy periods.
Research from Indeed shows that the hiring process can take anywhere from one week to 30 or more days, with specialized supply chain positions often requiring extended timelines due to their complexity and the need for specific skill sets. Professional recruiters typically reduce hiring timelines substantially compared to internal processes.
What hiring managers often overlook is the true cost of leaving positions unfilled. For a supply chain manager role with a $120K salary, here's what 6-8 weeks of vacancy typically costs:
Slowed operations: Delayed decision-making on critical supply chain initiatives, vendor negotiations put on hold, and strategic projects pushed back while teams operate short-staffed.
Overworked team members: Existing staff covering additional responsibilities leads to overtime costs, decreased productivity, and potential burnout—often resulting in additional turnover.
Delayed initiatives: New technology implementations, process improvements, and cost-saving projects stall without proper leadership, representing thousands in lost efficiency gains.
Lost revenue opportunities: In procurement roles, delayed vendor negotiations or missed contract renewals can cost significantly more than recruiting fees.
Industry studies show that a vacant position costs organizations 1.5-2x the monthly salary for every month it remains open. For that $120K supply chain manager role, each month of vacancy costs approximately $15K-20K in lost productivity, overtime, and operational inefficiency.
Leave the position open for two months, and you've spent $30K-40K, often exceeding the recruiting fee while still having an empty desk. The Society for Human Resource Management (SHRM) reports that the average cost per hire is $4,700, demonstrating that professional recruiting services often cost significantly less than extended vacancy periods.
As highlighted by supply chain industry experts and featured in CIO Women Magazine's review of best supply chain recruiting firms, organizations that invest in professional recruiting services consistently reduce their time-to-fill and total cost-per-hire compared to internal recruiting efforts alone.
The supply chain sector faces unprecedented talent shortages, with specialized roles often having candidate-to-opening ratios of 1:3 or worse. In this environment, speed and market knowledge become critical competitive advantages.
Professional recruiters maintain active relationships with passive candidates—those not actively job searching but open to the right opportunity. These candidates, often the strongest performers, require relationship-building and market positioning that takes weeks or months to develop.
When top supply chain talent becomes available, multiple companies compete for the same candidates. Organizations using professional recruiting services typically secure first-mover advantage through:
Companies attempting to manage this process internally often lose candidates to competitors with more efficient, professional recruiting processes.
The most successful hiring managers treat recruiting relationships as strategic partnerships rather than transactional services. This means:
Clear communication of priorities: Providing detailed role requirements, company culture insights, and ideal candidate profiles enables more targeted, efficient searches.
Timely feedback and decision-making: Rapid interview scheduling and prompt candidate feedback keeps top talent engaged and prevents loss to competitors.
Market intelligence utilization: Leveraging recruiter insights on salary trends, candidate motivations, and competitive landscape for strategic advantage.
Establishing ongoing relationships with operations recruiters creates additional value through pipeline development, market monitoring, and retention consultation that extends far beyond individual placements.
When evaluating recruiting fees, consider the total cost of hiring:
Professional recruiting services often deliver 3:1 or higher ROI when these factors are properly calculated. The 20-30% fee represents insurance against extended vacancies, poor fit hires, and missed opportunities.
The question isn't whether recruiting fees are "worth it". It's whether you can afford not to invest in professional recruiting services. In today's competitive supply chain talent market, speed, quality, and market expertise are premium services that deliver measurable returns.
The next time you evaluate recruiting partnerships, shift focus from fee percentage to total hiring cost and time-to-productivity. Organizations that make this mindset shift consistently outperform competitors in talent acquisition and retention.
Ready to reduce your vacancy costs and accelerate your hiring process? Our experienced team specializes in supply chain, procurement, and operations recruiting with proven track records of reducing time-to-fill while improving candidate quality. Contact us today to discuss how we can transform your hiring outcomes.
Is your supply chain job AI-proof? We discuss which tactical roles will be automated and which strategic skills will always need humans in our Procurement Pulse podcast. Subscribe to learn how to position yourself for the next 5 years.
Complete the form below to start your search for top-tier talent.
