RPO pricing: how to price a contract (4 models that work)

The classic mistake when quoting an RPO is to start from the contingency fee and multiply it by the number of roles. You get a huge number, the client panics, and the proposal dies. An RPO isn't billed like several searches bundled together; it's billed for running the function. Here are the four models that work.

1. Fixed monthly fee

An amount per month covering a defined scope: a set number of active roles, a dedicated team, or both. The client pays the same whether they have 4 or 9 searches open that month.

How to price it: start from the real cost of the people you'll dedicate (recruiters, coordination, sourcing) plus your margin. Not from a percentage of salaries.

Works when: volume is stable and predictable. Plant openings, planned expansion, a function that's always hiring.

2. Fee per role filled (per FTE)

An amount per hire, lower than a normal contingency fee because the client guarantees you volume and exclusivity. For example, a flat rate per hire instead of 20% of salary.

Works when: the volume is there but uneven month to month, and the client would rather pay for output than for idle capacity.

3. Hybrid: monthly base plus a reduced per-hire fee

A monthly base that covers the cost of keeping the team ready, plus a small fee per placement. It splits the risk: you have fixed income to sustain the operation, the client pays more only when hiring actually happens.

Works when: it's a client new to RPO and neither side wants to bet everything on one model. It's the easiest to close on a first contract.

4. Project milestone pricing

For RPO with a clear start and end: standing up a company's recruiting function, filling 15 roles for a product launch. Billed in stages: kickoff, half the roles, close.

Works when: the work has a fixed scope and a date. Not for an open-ended relationship.

Quick comparison

What else goes in the proposal

• The SLA: days to first shortlist, response time, client reporting cadence.
• Replacement guarantee and its window.
• Who owns the candidate data when the engagement ends.
• How it's billed: monthly in advance, against milestones, against hires.

Billing it in Klyver

Each RPO client is set up with its own model inside Klyver: one on a monthly fee, another per FTE, another hybrid. Pre-invoices go out on the cycle you set, with the roles-filled report attached, and the client approves with a link.