Choosing a recruiter
What is a talent sourcing agency? (UK guide) ?
A talent sourcing agency identifies and screens potential candidates for a role, but typically stops short of managing the full interview and offer process. They produce a shortlist of people who match your brief. In the UK, a pure sourcing service usually charges a fixed project fee or an hourly rate, not a percentage of salary. This is different from a full-cycle recruitment agency, which manages the process from advert to offer and charges a placement fee only when someone starts. If you already have an internal recruitment team handling interviews and offers, a sourcing agency can add capacity. If you need someone to run the whole hire, a managed-service recruiter is often a better fit.
What a talent sourcing agency actually does
A talent sourcing agency works at the top of the hiring funnel. They take your job brief, then search databases, professional networks, and job boards to find people who match. They screen those people against your criteria and hand you a shortlist.
What they do not typically do is arrange interviews, gather feedback, manage offers, or handle onboarding. That stays with you or your internal HR team.
This matters because the term is sometimes used loosely. Some firms call themselves a sourcing agency but deliver a fully managed recruitment service. Others stick strictly to name generation and initial screening. Before you sign anything, ask where their service stops and yours begins.
How it differs from a full-cycle recruitment agency
The table below sets out the practical difference for a UK employer.
| Activity | Talent sourcing agency | Full-cycle recruitment agency |
|---|---|---|
| Writes job advert | Sometimes | Yes |
| Searches passive candidates | Yes | Yes |
| Screens and shortlists | Yes | Yes |
| Arranges client interviews | Rarely | Yes |
| Manages offer and notice period | No | Yes |
| Typical UK fee model | Fixed project fee or hourly rate | Percentage of salary (15–25%) or fixed placement fee |
| You pay if no one is hired | Usually yes | Usually no (contingency) |
A full-cycle agency carries the risk of non-completion. A sourcing agency typically does not — you pay for the activity of finding and screening people, regardless of outcome.
What UK employers typically pay
Pure sourcing work is usually priced by the project or by the hour. Market rates vary widely, but these are common ranges:
- Hourly sourcing: £40–£100 +VAT per hour, depending on seniority of the role and the researcher.
- Project fee per role: £1,000–£5,000 +VAT for a defined shortlist, often with a minimum number of screened candidates presented.
Some sourcing agencies also offer a hybrid model: a lower upfront research fee plus a small success payment if you hire from their shortlist.
If you are comparing this against a managed recruitment service, our own fixed fees start at £1,500 +VAT for roles up to £30,000, rising to £4,000 +VAT for roles between £60,000 and £79,999. That covers the full cycle from advert to offer, with a 100% refund if the role is not filled. You can see the full breakdown on our how it works page.
When a sourcing agency makes sense
A sourcing agency is a sensible choice when:
- You have an experienced internal recruiter who can run interviews and close candidates but needs more names at the top of the funnel.
- You are hiring for a very niche role where the pool is small and you need someone to map the market.
- You want to keep external costs variable and are comfortable paying for activity rather than a placement outcome.
It is less suitable when:
- You do not have the time or resource to manage the interview and offer stage yourself.
- You want the financial risk of a failed search to sit with the supplier, not with you.
- You need help writing a job advert that actually attracts people. (Our job advert generator is a free starting point if that is a concern.)
Questions to ask a sourcing agency before you start
- “Do you charge by the hour or by the project?” Get a fixed cap. Open-ended hourly billing can drift.
- “What does a shortlist look like?” Ask for a sample. It should include a summary of each candidate’s experience against your brief, not just a LinkedIn profile link.
- “Where do you source from?” If the answer is only LinkedIn Recruiter, you are paying for something you could do yourself with a licence.
- “What happens if I hire no one from your shortlist?” The answer is usually that you still pay the full fee. Make sure you are comfortable with that.
If you would rather pay only when someone starts, a guaranteed hire model shifts the risk back to the recruiter. Our own guarantee is a 100% refund if the role is not filled — the client gets their money back, not another candidate.
Sourcing agency vs contingency agency: the risk sits differently
A contingency recruitment agency charges a percentage of first-year salary — typically 15–25% — and only invoices when a candidate starts. If the hire leaves early, most agencies include a rebate period during which they will refund a portion of the fee on a sliding scale.
A sourcing agency invoices for the work done, regardless of hire. Neither model is inherently better. It depends on whether you want to pay for certainty of effort (sourcing) or certainty of outcome (contingency or fixed-fee managed recruitment).
For more on how the numbers compare, our cost of vacancy calculator lets you model the true cost of an empty desk, which often dwarfs any recruitment fee.
FAQs
What is the difference between a sourcing agency and a headhunter? A headhunter typically works on retained or contingency assignments for senior or specialist roles and manages the full process through to offer. A sourcing agency usually focuses only on the identification and initial screening phase, handing over a shortlist for the client to manage from there.
Do I pay a sourcing agency if I don't hire anyone? Almost always yes. Sourcing agencies charge for the activity of finding and screening candidates, not for a successful placement. The fee is due whether or not you make a hire from their shortlist.
Is a sourcing agency cheaper than a recruitment agency? It can be cheaper on a per-role basis if you hire quickly from their shortlist. But if you need several rounds of sourcing or the role is hard to fill, a fixed-fee managed recruitment service that only charges on success may cost less overall and carries less financial risk.
Want the fixed price for your role?
Advertise it yourself from £399 +VAT, or hand the whole search to a dedicated recruiter — a flat fee by salary band with a 100% refund if the role is not filled.
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