Recruitment Process Outsourcing (RPO) — Per-Hire Fee and Monthly Subscription Revenue

💡 Accountant's Note

Recruitment Process Outsourcing (RPO) is the full outsourcing of a company's recruiting function — the RPO provider takes over hiring, from job requisition through offer. Major RPO firms: Korn Ferry RPO, ManpowerGroup Solutions, Cielo, Allegis Global Solutions. The RPO pricing model typically combines: (1) MONTHLY MANAGEMENT FEE: a fixed monthly fee covering the dedicated recruiting team's salaries, tools, and program management — recognized ratably each month (this is the SaaS-analog: the client is getting ongoing recruiting capacity). (2) PER-HIRE FEE: a variable fee for each hire actually made ($1,500–$5,000 depending on seniority and role difficulty) — recognized at point-in-time when each hire is made. The two performance obligations are distinct — the management fee is for ongoing capacity; the per-hire fee is for each filled position. Under ASC 606: the two-component model requires SSP allocation. The management fee guarantees minimum recruiting activity; the per-hire fee incentivizes efficient hiring.