Recruitment agency fees in the UK, explained
Agencies can be worth every penny for hard-to-fill roles. For high-volume hiring, the fees add up fast. Here is how UK agency pricing typically works, what to check in the terms, and when it makes sense to screen applicants yourself.
In this guide
1. Permanent placement fees
For permanent roles, agencies usually charge a one-off fee calculated as a percentage of the new starter's first-year salary. Fees of around 15-25% are commonly quoted, with higher percentages for senior or specialist roles and lower ones for high-volume or retained arrangements. Fees are negotiable and set by each agency's terms.
| Salary | At 15% | At 20% | At 25% |
|---|---|---|---|
| £24,000 | £3,600 | £4,800 | £6,000 |
| £30,000 | £4,500 | £6,000 | £7,500 |
| £40,000 | £6,000 | £8,000 | £10,000 |
Hiring ten £24,000 roles through an agency at 20% costs £48,000 in fees.
2. Temporary workers and margins
For temporary workers, the agency usually charges you an hourly "charge rate". It covers the worker's pay, holiday pay, employer's National Insurance, pension contributions and the apprenticeship levy where it applies - plus the agency's margin. Ask for the charge rate to be broken down so you can see the margin.
3. Rebates and guarantees
Many agency terms include a rebate or free replacement if a permanent hire leaves within an agreed period - often on a sliding scale over the first few weeks or months. Check the length of the period, whether the rebate is cash or a replacement, and the conditions (for example, paying the invoice on time).
4. Temp-to-perm transfer fees
If you take on an agency temp permanently, the agency may charge a transfer fee. The Conduct of Employment Agencies and Employment Businesses Regulations 2003 limit when that fee can be charged, and let you choose an extended period of hire through the agency instead of paying it. Read the transfer clause before you sign.
5. How to spend less
- Keep agencies for the hard roles. Specialist, senior and urgent hard-to-fill roles are where agencies earn their fee.
- Screen volume roles yourself. If you already get plenty of applicants, the agency's main job is screening them. At around 15-25% of salary per hire, that is expensive screening.
- Make screening scale. The reason teams hand volume roles to agencies is usually time: nobody can phone 200 applicants. AI screening removes that bottleneck. BeCareers screens every applicant from £1.50 each - see pricing and what a phone screen really costs.
Frequently Asked Questions
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