How much do tech recruitment agencies charge?
In the UK, contingency agencies typically charge 15 to 25% of first-year salary, paid when the hire starts. In the US the typical range is 15 to 25% of first-year base, rising to 30% for specialist AI and machine learning roles. Retained executive search usually costs 25 to 35% in both markets. Hurren & Hope charges 20% of base salary for permanent hires and 25% of base for executive search.
What is a typical recruitment fee percentage?
For permanent technology roles, most agencies quote somewhere between 15 and 25% of first-year salary, with senior and hard-to-fill roles at the top of that range. Always check whether the percentage is of base salary or of a wider package, because that changes the fee more than a point or two either way.
What is the difference between contingency and retained recruitment?
With contingency recruitment you pay only when someone is hired, usually as one invoice on their start date. With retained recruitment you commit and pay before anyone is hired, in exchange for a dedicated search: executive search is usually paid in thirds. Pay While They Stay is a third option: nothing up front, then 12 monthly instalments that stop if your hire leaves.
Do you charge on bonus, commission or equity?
No. Our fee is worked out on first-year base salary only. Bonus, commission, car allowance, equity and benefits are never included.
Do you offer a loyalty or volume discount?
Yes. Give us three or more permanent roles to fill and every hire is 18% of base salary instead of our standard 20%. If you have more hiring planned over the year and are happy to commit to a number of roles, we can agree a lower rate still. If you then hire fewer than the number agreed, the difference in fees is payable. You can pay by single invoice or monthly through Pay While They Stay, at 1.5% of base salary a month on the 18% rate.
When do I pay?
For permanent roles, nothing is paid while we search. You either pay one invoice on your hire's start date, or pay monthly for 12 months from the start date through Pay While They Stay. For executive search, one third is paid at engagement and the balance on start or monthly over 12 months.
What happens if my new hire leaves?
If you paid a single invoice, you get a refund for every month after the month you let us know they are leaving, for the full 12 months, so you end up paying exactly what you would have paid monthly. If you pay through Pay While They Stay, the month you let us know they are leaving is your last payment, at any point in the 12 months, whatever the reason they leave.
Is VAT added to your fees?
For UK clients, yes: all our fees are plus VAT. Clients in the US are not charged VAT.
How do fees work for contractors?
Contract roles are charged as a day rate. Our margin is agreed up front as a fixed figure, shown separately on the contract and fixed for the engagement, so you can see exactly what the contractor is paid and what we are paid. We supply contractors in the UK only.
How much does embedded recruitment cost?
Our embedded recruiter costs £5,500 a month in the UK (plus VAT) or $9,500 a month in the US, plus 8% of base salary per hire paid monthly over 12 months, which stops if the hire leaves. There is a three month minimum, then 30 days' notice. Against our own 20% fee, it costs less once you are hiring about seven people a year in the UK, or six in the US.