How do I choose a recruitment firm in the UK?

A recruitment firm acts as an intermediary between employers and job seekers. In the UK, the term covers everything from high-street agencies filling temporary admin roles to boutique headhunters placing board-level directors. The common thread is that they take on part of the hiring workload—sourcing, screening, or both—so you don't have to.

The three main types of recruitment firm

Most firms fall into one of three categories, and they charge in different ways.

Contingency fees are the market norm. The percentage is applied to the gross starting salary, so a £40,000 hire at 20% costs £8,000 +VAT. Fixed-fee services decouple the cost from the salary, which can make them predictable for budget planning.

What a recruitment firm actually does

The service you get varies widely. At minimum, a firm will advertise your role and forward CVs. A more thorough service includes:

• A review of the role's market standing, salary, and package.
• Writing and placing adverts across multiple job boards.
• Proactive headhunting of passive candidates.
• Telephone screening and face-to-face or video interviewing.
• Presenting a shortlist of interviewed, interested candidates.

Before you sign anything, ask the firm to walk you through exactly which steps they perform. Some charge a percentage for what is essentially a CV-forwarding service; others do the heavy lifting for a flat fee.

Fixed fee vs percentage: which costs less?

For a role paying £35,000, a 20% contingency fee is £7,000 +VAT. A fixed-fee service like Premium Hire charges £2,000 +VAT for the £30,000–£44,999 band. The saving is clear.

For a role at £70,000, 20% is £14,000 +VAT. The fixed fee for the £60,000–£79,999 band is £4,000 +VAT. The gap widens as salaries rise.

However, contingency agencies only invoice when you hire their candidate. If you do not hire, you pay nothing. Fixed-fee services are paid for the search work regardless of outcome. The trade-off is cost certainty versus payment on results.

Questions to ask before you engage a firm

1. "Do you work on a contingency, retained, or fixed-fee basis?"

The answer determines when and how much you pay.

1. "What does your screening process involve?"

"Screening" can mean a keyword match on a CV database or a 30-minute competency interview. Know which you are buying.

1. "What happens if the hire leaves shortly after starting?"

Most contingency agencies offer a rebate period—a sliding scale of credit or replacement if the person departs within a set window, often 8–13 weeks. Fixed-fee firms may offer a replacement cover option for an additional charge, bought before the start date. Always confirm the terms in writing.

When a recruitment firm is not the answer

A recruitment firm is one route, not the only route. If you have a strong internal HR team and a well-known employer brand, advertising directly on job boards like Indeed, Totaljobs, or LinkedIn might bring enough applicants at a lower cost. Job-advert packages start at £399 +VAT and put your role across multiple boards. You keep the screening in-house.

For hard-to-fill roles where you have already tried your own network and adverts, a firm that headhunts passive candidates is often the right next step.

How we work

Our Premium Hire service is a managed search at a fixed fee by salary band, agreed before we start. It begins with a five-point review of your role—market standing, salary and package, competitor analysis, online presence, and your current adverts and process. A dedicated recruiter then advertises, headhunts, screens, and presents a shortlist of interviewed candidates. Optional Replacement Cover can be added before the start date: if the hire leaves for any reason within 12 months, we run one replacement search for the same role at no further fee.

Across 46 roles we have published in full, we sourced and screened 1,542 candidates, presented 235 to clients, and saw 51 hires. The median time to fill was 42 days.

If you are weighing up which type of firm fits your next hire, call us on 0161 327 2895. We will talk through the options plainly, even if that means pointing you to a different route.

FAQs

What is the difference between a recruitment agency and a headhunter? A recruitment agency typically works on multiple roles at once, often on a contingency basis, and draws from active job seekers. A headhunter usually works on a retained or exclusive basis, targeting passive candidates in senior or niche roles. The fee structure differs too: agencies charge a percentage of salary on placement; headhunters often charge a retainer paid in stages.

Do I have to pay a recruitment firm if I don't hire anyone? It depends on the terms. Contingency agencies charge only when you hire their candidate—no hire, no fee. Fixed-fee and retained services charge for the work done, so you pay regardless of whether a hire is made. Always confirm the payment terms in the engagement letter before work begins.

How long does a recruitment firm take to fill a role? It varies by sector and seniority. Our published data across 46 filled roles shows a median of 42 days from instruction to offer acceptance, with the middle half falling between 29 and 68 days. The fastest was 14 days; the slowest, 169. A niche technical role will naturally take longer than a high-volume customer service post.