What is fixed fee recruitment in the UK?

What fixed fee recruitment means for UK employers

Fixed fee recruitment is exactly what it sounds like: you pay one price to fill a job, and that price does not change with the candidate's salary. It is an alternative to the traditional contingency model, where an agency's fee rises with the salary negotiated.

Most UK employers first encounter fixed fee recruitment when they advertise a role on a job board and are offered an "unlimited" CV search or a shortlist for a flat price. Others find it through specialist providers who bundle advertising, headhunting, and candidate screening into a single managed package.

The key thing to understand is that "fixed fee" describes the pricing, not the service. Two providers charging the same fixed fee can deliver completely different things. One might post your advert on a handful of job boards and send you every application unread. Another might assign a dedicated recruiter who writes the advert, headhunts passive candidates, conducts structured telephone interviews, and presents a shortlist of three to five people they have personally vetted.

How fixed fee compares to contingency

Contingency agencies only invoice if you hire their candidate. That sounds low-risk, but it shapes their behaviour: they prioritise roles they are most likely to fill quickly, and they may send CVs that are a partial match because speed matters. With a fixed fee managed search, the agency commits to the work regardless of outcome, so their incentive is to do the job thoroughly and protect their reputation.

What you actually get for a fixed fee

Services sold as "fixed fee recruitment" in the UK generally fall into three tiers:

Advert-writing and posting only. You supply the job description, the provider writes an advert and posts it to a selection of job boards for a set period. You receive applications directly and do all the screening and interviewing yourself. This is the cheapest route and works well if you have the time and skill to assess candidates.

CV search or database access. Some providers sell access to their CV database for a fixed period. You search, filter, and contact candidates yourself. The quality depends entirely on how recently the CVs were updated and how well you search.

Managed recruitment for a fixed price. This is a full-service model. A recruiter reviews the role with you, writes the advert, posts it across multiple boards, headhunts passive candidates on LinkedIn and industry networks, screens applicants, conducts initial interviews, and presents a shortlist of people they believe can do the job. Our own managed service, Premium Hire, follows this approach with a fee set by salary band:

That fee covers the entire search from briefing to shortlist. There is no percentage of salary added later. You can also add Replacement Cover before the start date: if the person leaves for any reason within 12 months, we run one replacement search for the same role at no further fee.

What fixed fee recruitment does not mean

It does not mean "cheap at any cost." A £299 advert package is a fixed fee, but it is not recruitment. You are buying distribution, not a hire. If nobody applies, or the applicants are unsuitable, the provider has still done what you paid for.

It also does not mean the agency works for free until you hire. With contingency, the agency carries the financial risk of not filling the role. With fixed fee, you carry that risk. That is why the upfront price is lower than a typical contingency fee: the agency is paid for the work, not the outcome.

Questions to ask any fixed fee provider

1. Who does the work? Is it a named recruiter or a pool of junior staff?
2. What does the fee include? Advert writing, job board posting, LinkedIn headhunting, telephone screening, interview scheduling, reference checking?
3. What happens if the shortlist is poor? Do they re-search, or is the fee spent?
4. What is not included? Some providers charge extra for psychometric testing, skills assessments, or advertising on premium boards.
5. Can I see data on their recent roles? How many candidates did they source and screen per role? What was their median time to fill?

We publish our own data openly: across 46 filled roles, we sourced and screened a median of 26 candidates per role, with a median time to fill of 42 days. The middle half of roles filled between 29 and 68 days. You can see the full breakdown on our recruitment data page.

When fixed fee makes sense

Fixed fee recruitment works well when:

• You want to know the total cost before you commit.
• The salary is known and unlikely to shift significantly during the process.
• You are filling a role where the candidate pool is accessible through advertising and headhunting, rather than a tiny, hidden network.
• You prefer a single point of contact who understands your business, rather than managing multiple contingency agencies.

It makes less sense when:

• The role is so niche that only a handful of people in the country can do it. In that case, a specialist headhunter on a retained basis may be the better route.
• You want several agencies competing to fill the role and are comfortable paying only on success.
• You are hiring at a very senior level (£100,000+) where the candidate expects a highly confidential, retained search process.

Fixed fee vs. flat fee: is there a difference?

In practice, UK recruiters use the terms interchangeably. Some draw a distinction where "flat fee" means a single price for any role regardless of salary, while "fixed fee" means a price set by salary band or role complexity. But there is no industry standard, so always check what the price buys rather than relying on the label.

For a deeper look at how fixed fee compares to other models, read our guide on what UK recruitment agencies charge.

Frequently asked questions

Is fixed fee recruitment cheaper than contingency?

At the point of hire, yes—often significantly. A contingency agency charging 20% on a £40,000 salary invoices £8,000 +VAT. A managed fixed fee for the same role might cost £2,000–£3,000 +VAT. But the comparison is not straightforward. With contingency, you pay nothing if you do not hire. With fixed fee, you pay whether you hire or not. The total cost of recruitment also includes your own time: if a cheap fixed fee service sends you 100 unread CVs, the hours you spend sifting them are a real cost.

Do fixed fee agencies offer a rebate period?

Most fixed fee agencies do not offer a rebate period. A rebate period—where a contingency agency refunds part of the fee if the candidate leaves within a set time—is tied to the percentage model. Fixed fee providers sometimes offer a replacement search instead. Our Replacement Cover, for example, gives you one replacement search at no further fee if the hire leaves within 12 months, provided it is bought before the start date.

What roles suit fixed fee recruitment best?

Roles with a salary between £25,000 and £80,000, where the skills are definable and the candidate pool is large enough to source through job boards and LinkedIn. Examples include sales managers, accountants, engineers, marketing managers, HR advisors, and operations roles. Very senior or highly technical roles—where the best candidates are not actively looking and must be approached discreetly—often suit a retained search better.

Is there VAT on fixed fee recruitment?

Yes. All recruitment services in the UK are subject to VAT at the standard rate. Any fixed fee quoted by a UK agency will have VAT added. When comparing prices, always check whether the figure is ex-VAT or inclusive. We quote all our prices ex-VAT with "+VAT" clearly stated.

Where to go from here

If you are weighing up fixed fee against other options, start by reading how to choose a recruitment agency. If you want to understand the full cost of hiring before you spend anything, try our cost of vacancy calculator.

FAQs

Is fixed fee recruitment cheaper than contingency? At the point of hire, yes—often significantly. A contingency agency charging 20% on a £40,000 salary invoices £8,000 +VAT. A managed fixed fee for the same role might cost £2,000–£3,000 +VAT. But the comparison is not straightforward. With contingency, you pay nothing if you do not hire. With fixed fee, you pay whether you hire or not. The total cost of recruitment also includes your own time: if a cheap fixed fee service sends you 100 unread CVs, the hours you spend sifting them are a real cost.

Do fixed fee agencies offer a rebate period? Most fixed fee agencies do not offer a rebate period. A rebate period—where a contingency agency refunds part of the fee if the candidate leaves within a set time—is tied to the percentage model. Fixed fee providers sometimes offer a replacement search instead. Our Replacement Cover, for example, gives you one replacement search at no further fee if the hire leaves within 12 months, provided it is bought before the start date.

What roles suit fixed fee recruitment best? Roles with a salary between £25,000 and £80,000, where the skills are definable and the candidate pool is large enough to source through job boards and LinkedIn. Examples include sales managers, accountants, engineers, marketing managers, HR advisors, and operations roles. Very senior or highly technical roles—where the best candidates are not actively looking and must be approached discreetly—often suit a retained search better.