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    Using a Recruitment Agency in 2026: Fees, Models and Alternatives
    Guides
    16 September 20269 min read

    Using a Recruitment Agency in 2026: Fees, Models and Alternatives

    Recruitment fees are a percentage of salary, so the numbers get large quickly. Here is how the models work in 2026 and when an agency is worth it.

    M

    The Marketit editorial team

    Specialists in the service industry

    Published: 16/09/2026Last updated: 16 September 2026

    Summary

    • Contingency fees are 15–25% of first-year salary; search is 25–35%.
    • Fixed-fee models suit junior and high-volume hiring.
    • Guarantee periods are usually 8–12 weeks — check the terms.
    • Use at most two agencies for a contingency role.
    • Direct hiring wins when the role is clear and your process is fast.

    Quick answer

    Contingency recruitment typically costs 15–25% of first-year salary; executive search costs 25–35%, paid in stages. On a $60,000 or £40,000 role that means $9,000–15,000 or £6,000–10,000.

    Fee models

    ModelFeeHow it works
    Contingency15–25% of salaryPaid only if you hire their candidate
    Retained search25–35% of salaryPaid in three stages; exclusive
    Fixed fee$3,000–8,000 / £2,000–6,000Flat price regardless of salary
    Temp / contract15–50% margin on hourly rateAgency employs, you pay an hourly rate
    RPO / embedded recruiter$5,000–15,000 / £4,000–12,000 per monthOutsourced hiring function
    Advertising-only$300–1,500 / £200–1,200They post and screen; you do the rest

    Which model fits

  1. Volume or junior roles: fixed fee or advertising-only. Percentage fees are poor value at low salaries in high volume.
  2. Skilled, hard-to-find roles: contingency, with two agencies at most — more than that and none of them prioritise you.
  3. Senior or confidential hires: retained search, because you need genuine market mapping, not a database search.
  4. Seasonal peaks: temp agency, where the margin buys you flexibility and employment risk transfer.
  5. Guarantee periods

    Most agencies offer a rebate or free replacement if the hire leaves within a set period — typically 8–12 weeks. Check whether it is a full refund, a sliding scale, or replacement-only, and whether it survives redundancy or a change in your own plans.

    Questions to ask an agency

  6. How many candidates will you present, and screened against what criteria?
  7. Do you headhunt actively or work from a database?
  8. What is the fee, the payment trigger and the guarantee?
  9. Who else are you presenting this candidate to?
  10. What is your average time to hire for this type of role?
  11. Can I speak to two clients who hired a similar role through you?
  12. When to hire directly instead

    If the role is well understood, applications come in easily, and someone internally has time to screen properly, direct hiring is cheaper. A good job advert, a clear salary range and a fast interview process beat a slow agency process for most local, mid-level roles. Publish the role where your candidates actually look, respond within 48 hours, and keep the process to two stages.

    Summary

    Expect 15–25% of first-year salary for standard recruitment and 25–35% for search. Match the model to the role: fixed fee for volume, contingency for skilled roles, retained for senior hires — and always confirm the guarantee terms in writing.

    Frequently asked questions

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    staffing
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