What a Recruitment Agency's 15-33% Fee Buys You

A recruitment agency filling a £65,000 role in the UK will typically charge somewhere between roughly £9,750 and £16,000, that's 15 to 25% of first-year salary for a standard contingency search, more again for retained executive search. Founders often only find out the exact number at the invoice stage. Here's what's inside that fee, and when it's worth paying it.

The fee structure, broken down

Standard contingency recruitment typically runs 15 to 25% of first-year base salary, rising to 18 to 22% for technical or IT roles. Retained search sits at 25 to 33%. Specialist areas like AI, machine learning and cybersecurity often command 22% or more on top of that.

In cash terms: a junior role at £38,000 works out to roughly £6,840. A mid-level hire at £65,000 lands around £13,000. A senior hire at £95,000 is closer to £19,000. A VP or Head of function at £150,000, filled through retained search, can run to £45,000.

What you're paying for

Candidate sourcing and screening time, access to passive candidates who aren't actively job hunting, salary benchmarking, and speed, the filtering work most founders underestimate until they're buried in applications that don't go anywhere. That's fair value when a role is specialist, senior, or urgent, and there's nobody in-house who can run that search well.

When the fee doesn't earn its keep

Roles you could source directly with the right process. Roles where speed matters more than reach. And especially ongoing, repeat hiring needs, where a fresh agency fee every time gets expensive fast, a direct trade-off between the cost and speed variables in how you hire. That's usually where an embedded or fractional hiring resource, someone handling sourcing and screening on an ongoing basis, beats paying 20% of salary per hire, every single hire, part of why so many founders are building that resource out of South Africa instead.

FAQ

What percentage do UK recruitment agencies typically charge?

Contingency recruitment agencies typically charge 15 to 25% of first-year base salary, technical and IT roles often 18 to 22%, and retained executive search 25 to 33%.

How much would an agency charge to fill a £65,000 role?

Roughly £13,000, based on a typical 20% contingency fee.

What does a recruitment agency fee pay for?

Candidate sourcing, screening, access to passive candidates not actively job hunting, salary benchmarking, and the agency's own time invested in the search.

When is an agency fee worth paying?

For specialist, senior or urgent roles where you don't have the in-house capacity or network to run the search yourself.

What's a cheaper alternative for ongoing hiring needs?

An embedded or fractional resource that handles sourcing and screening on an ongoing basis, rather than paying a fresh agency fee for every hire.

Sources

• on3works.com, Recruitment Agency Fees UK 2026: What 15-25% Actually Costs