How much does it cost to hire a recruiter?
How much does it cost to hire a recruiter?
15% – 25% of first-year salary
Average recruitment fees
Recruitment fees vary widely, but most companies pay a recruiter fee of 15% to 25% of the candidate's first-year salary. Flat fee recruitment costs range from $5,000 to $25,000 per hire, while some agencies offer project and contract recruitment at $25 to $150+ per hour. Recruitment agency fees depend on the hiring method and position level.
| Fee structure | Average cost | Common use |
|---|---|---|
| Contingency | 15% – 25% of first-year salary | Most common for mid-level, high-volume hiring |
| Retainer | 25% – 35% of first-year salary | Executive, C-suite, or specialized leadership |
| Flat fee | $5,000 – $25,000+ | High-volume, repeat, or entry-level hiring |
| Hourly rate | $25 – $150+ per hour | Temporary, project-based, or flexible support |
| Hybrid | Mix of fee models | Complex, custom, or evolving search scenarios |
Recruiter fee structures
Recruiter fees are amounts companies pay to external recruiters or search firms for sourcing, screening, and placing job candidates. These fees may be based on a percentage of the employee's first-year salary, a flat fee, an hourly rate for time spent, or a combination of these structures, depending on the agency's approach and the role.
Contingency recruiting
Contingency recruiter fees are the most common arrangement with staffing agencies and are only paid by employers when a candidate is successfully placed. The fee most often ranges from 15% to 25% of the hire's first-year salary, based on the position.
Entry-level roles often fall between 15% and 20%.
Mid-level and senior positions may range from 18% to 25%.
Executive or highly specialized roles can reach up to 30%.
Best for: Quickly filling mid-level or high-volume roles when a company needs flexibility, cost savings, or lacks a large HR team.
Retainer fees
Retainer fees are charged by executive search firms and are paid by employers regardless of whether a hire is made. The average total fee is around 25% to 35% of the candidate's first-year salary, often divided into payments such as one-third at the start, one-third during the search, and the final payment after placement. This approach provides ongoing recruiter support and is common for leadership or hard-to-fill technical roles.
Best for: Retainer fees work best for companies that need a dedicated search partner for critical positions requiring focused time and effort.
Flat fee recruiting
Flat fee recruiting is offered for high-volume or entry-level hiring, with employers paying a set amount per position filled. Instead of a percentage, the range can extend from $5,000 to $25,000 per hire based on the role and services included. This structure creates predictable recruitment costs for repeating or bulk needs in standard roles.
Best for: Flat fee recruiting is best for businesses with standardized, repeat hiring who want predictable expenses.
Hourly recruiting rate
Hourly recruiting rates are set by recruiting consultants, contract recruiters, or RPO (Recruitment Process Outsourcing) providers and charged to employers for each hour of service. Most hourly recruiting consultants and contract recruiters charge employers $25 to $75 per hour. RPO providers may charge higher rates, from $50 to $150+ per hour, and they may include additional fees if they are managing broader recruiting responsibilities.
Best for: Hourly contracts are best for employers who need part-time, temporary, outsourced, or project-based recruiting help rather than long-term full-time hires.
Hybrid recruiting fees
Hybrid recruiting fees blend elements of contingency, retainer, flat fee, or hourly models, with terms tailored to suit both employer and recruiter preferences. An employer may pay a modest retainer and a reduced remaining fee on placement, or some other custom schedule.
Best for: Hybrid recruiting fees are best used for roles with unusual requirements or complex, evolving search needs that don't fit other structures well.
Recruiter vs. headhunter
While the terms are sometimes used interchangeably, recruiters and headhunters serve different purposes in the hiring process.
Recruiters work with active job seekers who are already looking for new opportunities. They often handle mid-level positions across various industries and may work on a contingency basis, getting paid only when a candidate is successfully hired. Regular recruiters charge 15% to 25% of the candidate's first-year salary.
Headhunters specialize in pursuing talented professionals who aren't actively job searching. They focus primarily on executive-level positions, hard-to-find candidates, and highly specialized technical positions that require specific expertise. Most headhunters charge 20% to 35% of the candidate's first-year salary, with some fees paid up front and others paid when a candidate is hired.
When to use each: Choose a traditional recruiter for standard positions when you have time to review applications from active job seekers. Opt for a headhunter when you need to fill senior-level roles, highly specialized positions, or when you want to discreetly approach top talent at competitor companies.
Alternative recruiting options
There are alternative and cost-effective ways to attract and manage talent without relying solely on recruitment agencies. Options like Indeed, ZipRecruiter, Monster, and LinkedIn Recruiter cost less than paying high placement fees. Many online platforms offer AI-powered search, outreach, and applicant tracking tools for a monthly or annual subscription fee.
Factors affecting recruitment agency costs
Several factors can affect the recruitment agency fees you pay:
Role level and specialization: Recruitment fees for senior roles and highly specialized positions often cost more because they require more time and expertise to fill.
Industry demand: High-demand industries drive up fees due to greater competition for qualified candidates.
Agency experience and reputation: Top agencies with strong track records often charge higher recruitment fees.
Location and labor market: Agencies charge more in metropolitan areas or high-demand markets, and rates can vary further for national or international searches.
Hiring urgency: Faster projects or tight deadlines may lead to higher pricing.
Number of hires: Discounts are common for ongoing or large contract clients.
Scope of services: Services beyond basic placement, such as background checks or skills testing, increase the total cost.
Hidden or additional charges: Agencies may apply extra fees for advertising, travel, onboarding, or candidate assessments.
Exclusive vs. non-exclusive agreements
Exclusive agreements often come with higher total fees (20% to 35% of first-year salary), especially for executive searches. These models may require payments both up front and at placement. However, since agencies dedicate more effort to searching and vetting, you may get higher-quality hires and reduce repeat hiring costs long-term.
Non-exclusive agreements (contingency) charge standard fees of around 15% to 25% paid only if a candidate is hired, with no upfront payment. Competitive pressure may lead agencies to prioritize speed over thorough vetting, which can lower initial costs but may raise long-term costs if those quick placements are not good fits for your company.
Fee recruitment FAQs
What is a recruiter?
A recruiter is a professional who finds and connects qualified candidates with open job positions on behalf of an employer. Recruiters manage sourcing, screening, interviewing, and sometimes onboarding to help companies fill roles efficiently.
Who pays for a recruiter?
In most cases, the employer pays for the recruiter's services, either as a fee based on salary, flat fee, or hourly rate. Job seekers rarely pay recruiters directly unless using career coaching or specialized placement services.
What is a recruitment fair?
A recruitment fair, also known as a career or job fair, is an event where multiple employers gather to meet, screen, and recruit job seekers in one location. It allows candidates to explore job opportunities, submit resumes, and interact directly with companies looking to hire.
Is a recruiter worth it?
Using a recruiter can be worthwhile for many employers when faster hiring, expanded talent pools, and specialized hiring expertise are needed. The approach offers efficiency and professional support in candidate matching. However, it does introduce higher costs and less direct control, so the decision should be made based on the specific hiring needs and potential trade-offs.
How long does it take a recruiter to fill a position?
On average, recruiters take about a month to a month and a half to fill a position, though this varies widely depending on the industry, job level, and job market conditions. Entry-level roles or jobs in retail and hospitality often fill in under 3 weeks, while specialized or executive positions may take several months to fill.
What to look for in a recruitment agency?
Before selecting a recruitment agency:
Review the agency's experience in your industry and hiring record.
Ensure their recruitment fees and pricing structure are explained clearly up front.
Find out how they screen and assess candidates for your roles.
Evaluate how responsive and communicative the agency is throughout the process.
Check for flexible hiring solutions tailored to your staffing needs.
Confirm the agency understands compliance requirements and can help manage hiring risks.
Seek out positive client feedback and a solid reputation on platforms such as Talo and Google.
Questions to ask a recruiting agency
To make sure an agency aligns with your hiring goals, ask these questions:
What industries and job functions do you specialize in?
How do you find and evaluate candidates before presenting them?
What is your average time to fill a position?
What are your fees, and how are they structured?
How do you communicate progress and updates to clients?
What sets your agency apart from other recruiting services?
Can you provide references from recent clients?
How do you approach challenging searches or difficult placements?
What support do you offer during onboarding and after the candidate is placed?
What happens if a new hire leaves shortly after starting?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.