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
| Model | Fee | How it works |
|---|---|---|
| Contingency | 15–25% of salary | Paid only if you hire their candidate |
| Retained search | 25–35% of salary | Paid in three stages; exclusive |
| Fixed fee | $3,000–8,000 / £2,000–6,000 | Flat price regardless of salary |
| Temp / contract | 15–50% margin on hourly rate | Agency employs, you pay an hourly rate |
| RPO / embedded recruiter | $5,000–15,000 / £4,000–12,000 per month | Outsourced hiring function |
| Advertising-only | $300–1,500 / £200–1,200 | They post and screen; you do the rest |
Which model fits
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
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.