Pricing Models
Contingency Recruiting
No upfront cost; agency fee (15–25% of first-year salary) is paid only when you hire their candidate. Standard model for most roles.
Best for: Filling individual roles where you're only willing to pay for successful placements.
Retained Search
Upfront retainer paid in stages. Agency dedicates exclusive focus to your search. Fee is 25–35% of first-year compensation.
Best for: Director-level and above, niche technical roles, and positions requiring extensive market mapping.
RPO (Recruitment Process Outsourcing)
Outsourced recruiting function managing your entire hiring process on a monthly or per-hire basis. $3,000–$15,000/month for a dedicated recruiter.
Best for: Companies with consistent hiring volume (5+ hires/month) who want a scalable, cost-effective alternative to an internal recruiting team.
Contract Recruiter
Individual contract recruiter embedded in your team. $50–$100/hr or $8,000–$15,000/month flat rate.
Best for: Companies with defined hiring bursts (3–6 month surge) needing dedicated recruiting bandwidth.
Service Tiers
SMB Contingency
15–20% of salary
Standard contingency placement for individual contributor and manager-level roles. No payment until a hire is made.
- No upfront cost
- Database search and active outreach
- Pre-screened candidate shortlist
- Interview coordination
- Offer and negotiation support
Technical / Specialized
20–25% of salary
Engineering, product, data science, and specialized roles requiring deep technical screening and proactive sourcing.
- Technical screening by domain experts
- Proactive outreach (passive candidates)
- Market intelligence and comp benchmarking
- Background and reference checks
- 90-day replacement guarantee
Executive Search
25–35% of salary
VP-level and above retained search with comprehensive candidate mapping, assessment, and onboarding support.
- Exclusive retained engagement
- Full market mapping
- Senior executive assessment
- Cultural and leadership fit evaluation
- Onboarding support and 12-month guarantee
What Drives the Cost?
Role Seniority
Executive roles command higher percentage fees (25–35%) due to longer search timelines, more complex assessment, and higher stakes of mis-hire.
Talent Scarcity
Niche technical roles (ML engineers, blockchain developers, certain niche sales profiles) require more proactive sourcing and command higher fees.
Compensation Level
Percentage-based fees mean a $200,000/year hire costs 2× more in fees than a $100,000/year hire for the same percentage rate.
Replacement Guarantee
Standard guarantees are 60–90 days. Longer guarantees (180 days) provide more protection but are negotiated at higher fee rates.
Exclusivity
Giving an agency exclusive rights to a search motivates more effort and often produces better candidates faster than working multiple agencies simultaneously.
Geographic Market
Searches in major hubs (NYC, SF, London) have more competition for talent and more competition between agencies, creating rate pressure.
Rates by Location
| Region | Rate |
|---|---|
| 🇺🇸United States | 15–30% of salary |
| 🇬🇧United Kingdom | 15–25% of salary |
| 🇮🇳India | 8–15% of salary |
| 🇵🇭Philippines | 10–15% of salary |
| 🇵🇱Eastern Europe | 12–20% of salary |
Pricing FAQ
Is it cheaper to hire in-house recruiters or use agencies?
In-house recruiters cost $60,000–$100,000/year in salary plus 15–25% benefits, and typically fill 3–5 roles per month. At $8,000–$12,000/hire in loaded cost, internal recruiting is more cost-effective than agencies when hire volume exceeds 3–5 per month. Below that, agencies are more cost-efficient because their fee only applies when successful.
How do I negotiate recruiting agency fees?
Contingency fees are negotiable, especially for volume engagements. Offering exclusivity in exchange for a lower percentage (20% exclusive vs. 25% non-exclusive) is standard practice. Also negotiate the guarantee period (90 days is standard; push for 180 for senior roles) and what happens if the candidate's salary changes from what was initially discussed.
What does a 90-day replacement guarantee mean?
If the placed candidate resigns or is terminated within 90 days, the agency will replace them at no additional fee. This is standard in quality recruiting agreements. "Off-the-table" fees that offer no guarantee are red flags. Always negotiate the guarantee before signing, and clarify what triggers it (candidate-initiated resignation, performance termination, or either).
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