If you've never used a recruitment agency before, the fees can feel like a mystery. One agency quotes 18%, another 25%, and a third talks about "retainers". It's hard to know what's fair.

In this guide I explain how agency fees actually work, what's normal in the UK right now, and what to check before you agree to anything.

How permanent recruitment fees work

For a permanent hire, most agencies charge a one-off fee based on the new starter's first-year salary. You usually only pay once the person starts work, not when you interview them.

So if you hire an office administrator on £26,000 and the agency charges 20%, the fee is £5,200.

What's normal in the UK

Most UK agencies charge somewhere between 15% and 25% of first-year salary for permanent roles. Where a role sits in that range usually depends on:

  • How hard the role is to fill. Specialist and senior roles cost more.
  • The salary level. Some agencies charge a higher percentage for higher salaries.
  • How much work is involved. Advertising, headhunting and multiple interview rounds all add time.

For everyday roles like administrators, receptionists, customer service staff and care assistants, a fee at the top of that range is hard to justify.

Contingency or retained?

You'll hear two terms:

  • Contingency: you pay only if you hire someone the agency introduced. No hire, no fee. This is how most small business recruitment works.
  • Retained: you pay part of the fee upfront, and the agency commits time to your search. It's mainly used for senior or hard-to-fill roles.

For most small businesses, contingency is the safer choice. You're only paying for a result.

What a rebate is, and why it matters

A rebate protects you if your new starter leaves early. If they leave within the first few weeks, the agency refunds part of the fee. Typical terms look like this:

  • A 50% refund if they leave in the first 2 weeks.
  • A 25% refund if they leave within 4 weeks.

Some agencies offer a free replacement instead of a refund. Either way, never sign terms without some form of rebate or replacement.

Questions to ask before you sign

  1. What exactly is the fee, and on what salary? Basic salary only, or including bonus and benefits?
  2. When is it due? On the start date, or when the offer is accepted?
  3. What happens if the person leaves early? Get the rebate in writing.
  4. Is there anything to pay upfront? For a normal permanent hire, there shouldn't be.
  5. What happens if I hire someone they introduced months later? Most terms charge a fee if you hire their candidate within 6 to 12 months. That's fair, but you should know about it.

Is an agency worth it at all?

It depends on your time. If you're happy to write the advert, read 100 applications, chase candidates and run first interviews yourself, you may not need one.

But for most small businesses, the real cost of hiring isn't the fee. It's the hours a busy owner spends sifting CVs, and the cost of hiring the wrong person and starting again.

How we charge

At Bridge Gap Recruitment, I keep it simple. We charge a flat 10% of the first year's basic salary, only once your new starter begins. There's nothing upfront, and we offer a rebate if they leave in the early weeks. Full terms are sent to you before we introduce anyone.

If you're hiring for an office, admin, customer service or sales role, tell us about the role and I'll come back to you personally.