Cost comparison
Recruitment fees by salary band: agency % vs flat fee
A contingency recruitment agency bills a percentage of first-year salary, typically 15% to 25%, so the fee rises with every pay band while the work does not. On a £30,000 hire that is £4,500 to £7,500; on a £60,000 hire it is £9,000 to £15,000. A flat fee by salary band is £1,500 +VAT up to £30,000, £2,000 +VAT to £44,999, £3,000 +VAT to £59,999 and £4,000 +VAT to £79,999, with a 100% refund if the role is not filled. The gap is smallest at the bottom of the scale and widest at the top, which is why the percentage model is most defensible for junior roles and least for senior ones. The table below shows every band side by side.
The table
Contingency fees are a percentage of first-year salary. Flat fees are set by salary band. Put side by side, the difference is the salary itself.
| Salary | Agency at 15% | Agency at 20% | Agency at 25% | Flat fee (Guaranteed Hire) | You keep, vs 20% |
|---|---|---|---|---|---|
| £30,000 | £4,500 | £6,000 | £7,500 | £1,500 +VAT | £4,500 |
| £40,000 | £6,000 | £8,000 | £10,000 | £2,000 +VAT | £6,000 |
| £45,000 | £6,750 | £9,000 | £11,250 | £3,000 +VAT | £6,000 |
| £55,000 | £8,250 | £11,000 | £13,750 | £3,000 +VAT | £8,000 |
| £60,000 | £9,000 | £12,000 | £15,000 | £4,000 +VAT | £8,000 |
| £75,000 | £11,250 | £15,000 | £18,750 | £4,000 +VAT | £11,000 |
The flat-fee column is our Guaranteed Hire: £1,500 +VAT for roles up to £30,000, £2,000 +VAT for £30,000 to £44,999, £3,000 +VAT for £45,000 to £59,999 and £4,000 +VAT for £60,000 to £79,999, with a 100% refund if the role is not filled. The agency columns are illustrations at the three rates most commonly quoted; your own quote may sit anywhere in that range, and all figures exclude VAT.
Why the gap grows with the salary
A percentage fee is a fee on the salary, not on the work. Advertising, screening, interviewing and presenting a shortlist for a £60,000 finance manager takes broadly the same effort as for a £40,000 one — sometimes less, because senior candidates are easier to assess. The percentage model bills half as much again for the second role anyway.
That is why the comparison is close at the bottom of the scale and lopsided at the top. On a £30,000 role the difference between 15% and a flat fee is £3,000, and an agency that finds the person in a week has earned it. On a £75,000 role the difference at 20% is £11,000, and the work has not changed.
What other flat-fee providers publish
Flat fees are not all the same product, and the cheapest is usually advertising rather than search.
| Provider | Published price | What it is |
|---|---|---|
| Recruitment Revolution | £2,495 to £5,995 by salary band and working pattern, all plus VAT | All-in managed search; remote roles priced higher than onsite |
| Flat Fee Recruiter | From £350, from £850, and £1,500 for their top tier | Advertising at the low tiers, proactive outreach at the top |
| Hiring People | £99 to £1,749 across six packages | Advertising plus screening services, by package |
| TalentFinder | £1,500 to £4,000 +VAT by salary band; advertising-only from £399 +VAT | Managed search with a 100% refund if not filled; or advertising on every major board |
Recruitment Revolution is the closest like-for-like comparison to a managed search and is cheaper than us at the lowest band for an onsite role; we are cheaper from the mid bands up and carry the refund. Flat Fee Recruiter and Hiring People are cheaper because their lower tiers are advertising, which is a different product — it leaves the screening with you. All of these figures were read from the providers' own published pages; our verified comparison records the dates.
The three cases where a percentage is the better buy
- The role may never fill. Contingency means you pay nothing if the agency fails. A flat fee only matches that if it carries a refund — ours does; check whether the one you are quoted does.
- You hire at volume. A negotiated rate well under 15% on twenty hires a year can beat any flat fee, and the agency's account manager becomes part of your team.
- The network is the product. In some senior and niche technical markets the candidates exist only in a specialist's contacts, and that access is what the percentage buys.
Outside those cases, the percentage is a tax on the salary rather than a price for the search.
What to ask before you sign either
- Is the fee before or after VAT? Almost always before, so add 20%.
- What happens if the role is not filled? Contingency: nothing to pay. Flat fee: only a refund term makes it equivalent.
- What happens if the hire leaves? Ask for the rebate terms in writing, and read the conditions on any replacement offer — most are a re-run of the search under conditions, not a guarantee.
- What is actually included? Advertising, screening, interviews, shortlist, offer management — get the list, because the cheapest flat fees include only the first.
- How is the salary defined for the fee? Basic only, or basic plus car, bonus and commission? On a percentage model this changes the bill by thousands.
If you would rather see the number for your role than the table, tell us the role and the salary and we will say exactly what it would cost and how long roles like it have taken us to fill.
Frequently asked questions
What percentage do recruitment agencies charge in the UK?
Most contingency agencies charge between 15% and 25% of the first-year salary, payable when the candidate starts. Executive search and niche specialists can be higher; volume and repeat business can negotiate lower. The rate is usually quoted before any work is agreed, so ask for it in writing.
How much is a recruitment fee on a £40,000 salary?
£6,000 at 15%, £8,000 at 20% and £10,000 at 25%. A flat fee for a managed search on the same role is £2,000 +VAT in the £30,000 to £44,999 band, with a 100% refund if the role is not filled.
How much is a recruitment fee on a £60,000 salary?
£9,000 at 15%, £12,000 at 20% and £15,000 at 25%. The flat fee for the same search is £4,000 +VAT in the £60,000 to £79,999 band. This is the band where the percentage model costs the most for the same work.
When is a percentage fee still worth paying?
When the role is so hard to fill that you would rather the agency carried the risk of never filling it and you paid nothing; when you hire at volume and have negotiated a rate well under 15%; and when a specialist network is the only route to the candidates. Outside those three cases the percentage is paying for the salary, not the search.
Is VAT charged on recruitment fees?
Yes. Recruitment fees are standard-rated, so add 20% VAT to any figure quoted ex-VAT, and check whether an agency's quoted percentage is before or after VAT — most are before.
Sources
- TalentFinder Guaranteed Hire — the flat-fee bands and refund term quoted here
- Recruitment Revolution — published all-in fees by salary band and working pattern
- Flat Fee Recruiter — published price tiers
- Hiring People — flat fee recruitment packages
- What flat-fee recruitment costs — our verified comparison of published UK prices
Want the fixed price for your role?
Advertise it yourself from £399 +VAT, or hand the whole search to a dedicated recruiter with Guaranteed Hire — a flat fee by salary band with a 100% refund if the role is not filled.
See Guaranteed Hire Advertise a job
Or call 0161 327 2895.