When you work with STACK IT on a contract IT placement, we handle everything.
We’re the legal employer. We run payroll. We manage contracts, remittances, onboarding, and replacement. You get a vetted contributor who shows up ready, without needing to sort out logistics or manage compliance.
It’s no secret we make a margin. Our contract recruitment fees exist for the same reason a success fee exists in a permanent search: it’s part of our business model. But in a contract scenario, there is no salary to calculate a percentage from. So the cost of service, support, and delivery gets built into the hourly rate.
But you’re not only paying us for someone to show up. You’re paying for the structure behind it: the screening, the paperwork, the support, and the replacement guarantee if something (or someone) doesn’t stick.
Oh, and the fact that you don’t need to commit to a full-time employee. Or commit to a set term with your contractor, either.
Clients ask what the rate includes, and we tell them. Not with a pricing breakdown, but with a clear, operational explanation of the work we’re doing behind the scenes. We’ve earned trust in cases where other recruiters couldn’t answer basic questions. That’s often the difference between a vendor and a partner that stays engaged.
When Contract Recruitment Fees Have No Context
A Canadian mortgage lender ended up walking away from their previous recruiter. The recruiter wouldn’t explain the structure. There was no context, support, or flexibility in the solution. The client’s internal review team shut it down.
When we stepped in, we did what the recruiter didn’t. We showed the client how we operate as the legal employer, not a middleman. We walked through the full workflow: vetting, onboarding, payroll, and what happens if a replacement’s needed. They needed a program manager. We filled it in under two weeks.
What’s Included in Our Contracting Rate (And Why It Matters)
Employers in Canada found to have misclassified employees as independent contractors may be subject to penalties, retroactive CPP and EI contributions, and back pay for entitlements under the Employment Standards Act. — Government of Canada – Payroll Deductions and Worker Classification Guidelines (2024)
Our hourly rates include the operational load most clients don’t want to carry.
- Structured screening: Every candidate goes through a live, recorded video interview. We don’t do phone screens or skip steps. We assess candidates through scenario walk-throughs, cultural fit assessments, and project retrospectives, among other methods. It’s the exact same process we use for permanent hires.
- Admin and payroll: We handle onboarding packages, employment contracts, full-time commitments, tax forms, and remittance. Your ops team doesn’t get dragged into it.
- Mid-contract support: We stay closely involved in every engagement. If a contractor stops responding, misses key delivery targets, or shows early signs they’re not a fit, we’re made aware. If they exit mid-project, we will backfill the role and replace the contractor quickly and at no additional cost.
- Compliance coverage: From ESA rules to provincial remittance, we’re on the hook. Not you.
These are the pieces that make a contractor ready to work and are backed by our support.
When the First Contract Hiring Attempt Fails
One team brought in a backend contractor through LinkedIn. He ghosted them before day one. IT had already shipped equipment. Legal had the contract signed. There was no backup. No recruiter involved.
The team lost two weeks and had to rerun the entire search. We stepped in, took over the process, and placed a new contractor in a week: fully vetted, onboarded, and ready to go. This wasn’t a free replacement (which we provide). It wasn’t our candidate to begin with. But once STACK IT took the lead, everything changed: process, accountability, and delivery.
That’s what the contract model covers when we’re engaged properly.
When a Contract Role Becomes a Long-Term Fit
A startup client almost walked away when we suggested a contractor. They needed a backend engineer, but the model made them hesitate.
They were also thinking long term. If this worked out, would they need to hire someone new to make it a full-time hire next year? We explained that they could convert the contractor at any time using our buyout model. It gives them a 2% discount on the conversion fee for every month the contractor is active. That way, the investment they’ve already made isn’t lost and is accounted for.
They moved forward, and the new software engineer proved to be an excellent addition to the team. That same engineer was extended twice. Because we’d explained our buyout model early on, the client knew that if they wanted to bring the contractor on full-time later, the cost to convert would go down every month. That made the long-term option a no-brainer.
It wasn’t the model that changed. It was the context around it.
What Happens When No One Owns the Outcome
We’ve seen companies try to go lean. No recruiter and no support. Just some names in an inbox.
What they got: delayed starts, payroll issues, contractors disappearing, and no one accountable when things went off the rails. No onboarding or signed paperwork confirmed. No help when things began to slip, either.
Without managed contract recruiting, you’re left holding the pieces.
Why Clients Want Rate Transparency Now
The cost of a bad hire in a technical role in Canada can exceed $25,000 when factoring in recruitment, onboarding, training, and lost productivity. — HRPA – The Hidden Costs of Poor Hiring Decisions (2024)
Hiring cycles are tighter. Headcount sign-off takes longer. And there’s more pressure to get placements right the first time.
If your recruiting partner can’t explain the rate, they probably can’t step in when there’s an obstacle. Transparency in our pricing model tells you who’s actually carrying the weight of the employment.
What You’re Really Paying For With Contract Recruitment Fees
72% of organizations expect clearer cost justification and accountability from recruitment partners post-2023 due to budget tightening and hybrid delivery models. — SHRM – 2024 Talent Acquisition Benchmark Report
We’re not defensive about our rates. We’re responsible for what it enables.
STACK IT’s contract recruiting model means you don’t need to commit to a full-time employee, manage tax forms, or even commit to a termed relationship with your contractor. We’ve built the infrastructure to take care of all that for you.
We’ve been in conversations where teams push back. And we’ve shown them what they’re actually getting. Once we walk through how it works, who’s responsible for what, and what’s included in the solution, the hesitation usually fades.
That’s how we earn trust.
