Most businesses negotiate recruitment fees without knowing what the market rate is or what they are actually buying. Here is how the pricing works, written plainly.
Quick answer: UK contingency recruitment fees typically run between 15% and 25% of first year salary, with specialist and senior search at the upper end. Retained search runs 20% to 30%, usually split across three stages. The fee percentage matters far less than the rebate terms and whether the agency is working your role exclusively.
Agencies are generally cagey about pricing, which is why most buyers end up negotiating in the dark. This page sets out how it actually works, including the parts that do not favour us.
You pay only if the agency places someone. Fees typically run 15% to 25% of first year basic salary, occasionally of total first year compensation, which is a significant difference worth clarifying in writing.
Rough bands across the UK market:
| Role type | Typical fee |
|---|---|
| High volume, junior, generalist | 12% – 17% |
| Mid-level specialist (AE, BDM, Marketing Manager) | 18% – 22% |
| Senior and hard to fill (Sales Manager, Director) | 20% – 25% |
| Executive and confidential search | 25% – 30%, usually retained |
You pay in stages, commonly a third on engagement, a third on shortlist and a third on placement. Fees run 20% to 30%.
The reason retained search costs more is not better recruiters. It is that the economics allow genuine market mapping. A contingency recruiter competing against four others has a one in five chance of being paid, so sending what is already on file is the rational behaviour. A retained recruiter has committed time and will map the market properly because they can afford to.
Retained makes sense for confidential searches, genuinely scarce skills, and senior roles. For a mid-level role in a liquid market, contingency is usually the right call and we will say so.
This matters more than the percentage and gets negotiated less.
A typical rebate is sliding: 100% if the hire leaves within four weeks, 50% within eight, 25% within twelve. Some agencies offer a replacement rather than a refund, which is worth less to you and should be priced accordingly.
Points worth settling in writing before you sign:
Negotiating 20% down to 12% feels like a win and frequently is not, because it changes the agency's economics rather than their margin expectations.
At 12%, on a contingency basis, against three competitors, the rational behaviour is to send whatever is already on file within the hour and move on to a better-paying role. You will get CVs quickly. You are unlikely to get a mapped market.
The more effective negotiation is not on percentage but on exclusivity. An agency working your role exclusively at 20% will usually outperform three agencies at 15%, because for the first time one of them has a reason to do the difficult work.
We work on both contingency and retained terms depending on the role, and we will tell you which we think fits rather than defaulting to the more expensive one. Where a role is straightforward and the market is liquid, contingency is usually right.
We prefer exclusive arrangements, for the reason set out above: it is the only structure where investing three weeks in mapping a market makes commercial sense, and it produces better shortlists. Our CV to hire ratio is three to one and our client retention rate is 94%, both of which are consequences of working that way.
For how to assess an agency beyond price, see how to choose a sales recruitment agency.
Contingency fees typically run 15% to 25% of first year salary. High volume or junior roles sit at 12% to 17%, mid-level specialist roles at 18% to 22%, and senior or hard to fill roles at 20% to 25%. Retained executive search runs 25% to 30%.
Contingency means you pay only on placement. Retained means paying in stages, commonly a third on engagement, a third on shortlist and a third on placement. Retained costs more because the economics allow genuine market mapping rather than sending existing candidates.
Negotiating percentage alone often backfires. At a low contingency rate against several competitors, the rational agency behaviour is to send what is already on file rather than map a market. Negotiating exclusivity in exchange for a lower rate is usually a better trade for both sides.
A refund if the hire leaves early, typically sliding from 100% within four weeks to 50% within eight and 25% within twelve. Worth clarifying whether it applies to resignation as well as dismissal, and whether it is a refund or a credit against a future placement.
It varies by agency and should be settled in writing. Some charge on basic salary, others on total first year compensation including bonus and commission. On a sales role with substantial OTE that distinction makes a significant difference.
Tell us what you are hiring for and we will tell you honestly whether the brief is achievable at the budget approved. Vetted shortlist within 48 hours.
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