How much do recruitment agencies charge in the UK?

Short answer: UK recruitment agencies usually charge employers 15–25% of a permanent hire's first-year salary, paid only when the person starts. Senior and hard-to-fill roles sit at the top of that range, and retained executive search typically costs 25–33%, part of it paid upfront. For temporary staff, the agency bills an hourly or daily rate that covers the worker's pay, on-costs and the agency's margin. Candidates should never pay: UK law stops agencies charging work-seekers for finding them a job, apart from a few exceptions such as performers.

This guide explains each fee model, what the percentage is calculated on, how early-leaver refunds work, and what to check before you sign an agency's terms.

UK recruitment agency fees at a glance

• Contingency (permanent roles): 15–20% of first-year salary is common; 20–25% or more for senior, specialist or hard-to-fill roles. Paid when the candidate starts.
• Retained search (senior and executive roles): typically 25–33% of first-year salary, paid in stages, usually starting when the search begins.
• Recruitment process outsourcing (RPO): a monthly management fee, a fee per hire, or both, priced on your hiring volume.
• Temporary and contract staff: an hourly or daily charge rate made up of the worker's pay, holiday pay, employer National Insurance and pension, plus the agency's margin.
• Candidates: pay nothing. Agencies are prohibited from charging work-seekers fees for finding them work, with limited exceptions.

Contingency recruitment fees

Contingency is the most common model in the UK. The agency only earns a fee if you hire someone it introduced, so there is nothing to pay upfront and nothing to pay if you hire elsewhere. You can usually brief several agencies at once.

Most contingency agencies charge between 15% and 20% of the candidate's first-year salary, rising to as much as 30% for hard-to-fill positions. For senior technology roles, quotes of 20–25% are typical. On a £100,000 senior engineer, that is a fee of £20,000–£25,000.

Some agencies publish banded rates that rise with salary, so a higher salary attracts a higher percentage as well as a bigger fee. The invoice is normally raised on the candidate's start date and is payable within the agency's payment terms.

Retained executive search fees

Retained search is used for senior leadership, board and hard-to-find specialist roles. You pay the search firm to run an exclusive, structured search, usually including direct approaches to people who are not looking for a job.

Retained fees are typically 25–33% of the first-year salary, and can be higher for C-level roles. The fee is usually split into three instalments: one when the search starts, one when the shortlist is presented, and one when the candidate is placed. The first instalment is generally not refundable, even if you do not hire.

RPO pricing: recruitment process outsourcing

With RPO, an outside provider runs part or all of your recruitment, often with recruiters embedded in your team. It suits companies hiring at volume rather than one or two roles a year.

RPO providers rarely publish rate cards. Pricing is usually one of:

• a monthly management fee to run the process,
• a cost per hire for each successful placement, or
• a hybrid of a smaller management fee plus a lower cost per hire.

The price depends on the number of hires, the type of roles and how much of the process you hand over, so expect a quote rather than a percentage.

Temporary and contract staff

For temporary workers supplied by an employment business, you pay a charge rate per hour or day. It covers the worker's basic pay, the costs of employing them (such as holiday pay, employer National Insurance and pension contributions) and the agency's margin. There is no standard margin; it varies by sector, location and volume.

If you want to take a temporary worker on permanently, the agency may charge a transfer fee, but UK rules limit when. It can only be charged if the transfer happens within 14 weeks from the day after the worker started their first assignment with you, or 8 weeks from their last day working for you, whichever ends later.

Early-leaver refunds (rebates)

Most permanent placement terms include a rebate or guarantee: if the new hire leaves within an agreed period, the agency refunds part of the fee or finds a replacement free of charge. Rebates are a commercial term, not a legal requirement, so they vary from agency to agency.

A common pattern is a sliding scale over the first 8 to 16 weeks: for example, a full refund if the person leaves within the first 4 weeks, falling to 50% by around 12 weeks, then nothing. Some agencies offer a replacement instead of a refund, and many only honour the rebate if you paid the original invoice on time.

What is the fee calculated on?

Check the definition of "salary" or "remuneration" in the terms. Some agencies charge on the basic salary only. Others charge on the total first-year package, which can include guaranteed bonuses, car allowance and other benefits, and can add thousands of pounds to the fee. Fees are usually quoted excluding VAT.

Also check what happens if you hire the candidate later, into a different role, or through a group company. Many terms charge the full fee if you hire anyone the agency introduced within a set period after the introduction, often 6 to 12 months.

Do candidates pay recruitment agency fees?

No. Under the Conduct of Employment Agencies and Employment Businesses Regulations 2003, agencies are prohibited from charging fees to workers for finding them work, or trying to. There are limited exceptions for certain occupations, such as performers and models. The fees agencies charge employers are not regulated: they are a commercial agreement between the agency and the hirer.

Is a recruitment agency worth it?

It depends on the role. An agency is worth paying for when you need a wide pool quickly, when the role is hard to fill, or when you have no one in-house with time to source and screen. It is harder to justify for roles that attract plenty of strong applicants through your own adverts and network.

Before you sign, ask how the agency will find candidates, what screening it does, how many CVs to expect, and what its rebate terms are.

What is the 80/20 rule in recruiting?

The 80/20 rule (the Pareto principle) is the observation that a small share of inputs produces most of the results. In recruiting it usually means that most good hires come from a small number of sources, such as referrals and a few trusted recruiters, so it pays to put more effort into those sources and less into high-volume channels that rarely produce a hire.

How to keep recruitment fees down

• Negotiate the percentage. Rates are commercial, and agencies often reduce them for several roles or an exclusive brief.
• Charge on basic salary only, not the full package.
• Ask for a longer rebate period, and a refund rather than a replacement.
• Agree the fee is payable on start, not on offer acceptance.
• Use referrals and your own network first. People who have worked with a candidate know far more than a CV shows.

How ExpertsCircle charges

ExpertsCircle is a different model for senior engineering hires. Instead of a recruiter searching job boards, a senior expert introduces someone they have worked with or whose work they have examined, and writes a vouch that says what they saw.

• 15% of the first-year salary, only if you hire someone we introduced.
• No fee unless you hire. No retainer and no upfront payment.
• Free to read the vouch. You see the candidate's first name and the vouch before you decide, and you agree the 15% before you see the full profile.

On a £100,000 hire, that is £15,000, compared with £20,000–£25,000 at a typical 20–25% agency rate. See how expert networks compare with agencies, or read about tech recruitment in London.

Sources

• GOV.UK: Overview of the Conduct Regulations 2003, on fees to workers, fees to hirers and transfer fees.
• legislation.gov.uk: Conduct Regulations 2003, Schedule 3, the occupations where work-seekers can be charged.
• Agency Central: How do recruitment agencies get paid, and how much?, on contingency and retained ranges and rebates.
• RPO Association: An employer's guide to RPO pricing models, on RPO pricing.