How does agency recruitment work in the UK?

How agency recruitment works in the UK

A recruitment agency acts as an intermediary between you and the job market. At its most basic, the agency writes or receives a brief, searches its database and active job boards, screens applicants, and sends you a shortlist. You interview from that shortlist and, if you hire, you pay a fee.

That is the standard model. There are variations — and the differences matter when you are choosing how to fill a role.

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The main recruitment models

The 15–25% contingency figure is a well-established market range, not our fee. Our own managed-search fees are fixed by salary band — see how it works for the full breakdown.

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What agencies actually do — and what they don't

A good agency earns its fee by reaching candidates who are not actively applying: people in work who are open to a move but will not respond to a job advert. If your role is hard to fill, niche, or senior, that active sourcing has genuine value.

For roles that attract plenty of direct applicants — office administration, warehouse operatives, many entry-level positions — paying 15–25% of salary is hard to justify. A well-written job advert on the right boards often produces a workable shortlist at a fraction of the cost. We will tell you honestly if advertising alone is likely to be enough for your role.

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Our published fill data

Across 46 filled roles in 18 sectors, here is what we have measured:

These figures are from real completed assignments. We publish them in full at /recruitment-data so you can judge for yourself.

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Our managed-search fees

If we do not fill the role, you receive a full 100% refund — guaranteed. There is no replacement candidate process; you simply get your money back.

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When a standard agency beats us

We are not always the right answer. A traditional contingency agency may suit you better if:

• You want to pay nothing unless you hire and are willing to pay a percentage fee when you do.
• The role requires specialist sector knowledge and a proprietary candidate network built over years.
• You need volume hiring across multiple sites and want a managed supplier relationship.

For most small and mid-sized employers filling one to a handful of roles a year, the percentage fee model means paying several thousand pounds more than a fixed-fee approach for an equivalent outcome. But we would rather you know that than find out afterwards.

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Advertising-only packages

If you want to manage your own process, our job advertising packages place your advert across the major UK job boards with professional copy and targeting:

• Standard — £399 +VAT
• Premium — £499 +VAT
• Premium Plus — £599 +VAT

See how advertising works or post a job to get started.

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Is VAT charged on recruitment fees?

Yes. All recruitment fees — whether from a traditional agency or a fixed-fee service — are subject to VAT at the standard rate. Every price above is quoted ex-VAT with +VAT beside it, which is the correct way to present B2B pricing in the UK. For a longer answer, see is there VAT on recruitment agency fees?

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Phone us on 0161 327 2895 if you want to talk through a specific role before committing to anything.

FAQs

Do I have to pay a UK recruitment agency if I don't hire anyone? With a standard contingency agency, no — you pay only if you make a hire. With a fixed-fee or managed-search service, the fee structure varies: some charge upfront, some on completion. Our managed-search service carries a 100% refund guarantee if the role is not filled, so you do not lose your fee. For more detail, see our answer to whether recruitment agencies charge if you don't hire.

What is a realistic timeline for agency recruitment in the UK? Based on our own completed assignments, the median time to fill a role is 42 days. Half of all roles fell between 29 and 68 days. The fastest was 14 days; the slowest 169. Timelines vary by sector, seniority and how competitive the salary is. You can see sector-by-sector benchmarks at /data/time-to-fill-uk-by-sector.

Is it cheaper to advertise directly than to use a recruitment agency? For many roles, yes. A job advertising package runs from £399 +VAT, whereas a contingency agency typically charges 15–25% of first-year salary — which on a £35,000 role is roughly £5,250 to £8,750 +VAT at market rates. If your role is likely to attract direct applicants, advertising first is usually the more cost-effective starting point. If it is a specialist or senior role with a shallow active candidate pool, a managed search or agency is often worth the extra outlay.

How many candidates should I expect a recruitment agency to present? Across our 46 filled roles, we sourced and screened 1,542 candidates in total and presented 235 to clients — a median of roughly 26 candidates worked per role before arriving at a shortlist. The number presented to you will be much smaller; the screening work happens before you see anyone. What matters is the quality of the shortlist, not the volume of CVs passing across your desk.