How Much Do Recruitment Agencies Charge?
Recruitment agencies can charge a percentage of a hire’s salary, a fixed placement fee or an ongoing staffing rate. For a concrete example, Hurren & Hope publishes a fee of 20% of first-year base salary for non-executive permanent hires. That is one provider’s price, not a universal rate or a DACH market average. Its published fee schedule was checked on 12 October 2026.
At an assumed €80,000 salary and 20% fee, the placement charge would be €16,000 before any applicable tax. But the percentage alone does not tell you when payment is due, what happens if the hire leaves or how much screening your team still needs to do.
If you are hiring a developer, QA engineer or DevOps specialist, compare the full arrangement. A permanent hire and an engineer supplied through staff augmentation solve different problems and have different bills.
How are recruitment agency fees calculated?
Start with the fee base: the amount the agency uses in its calculation. It might be annual base salary or a wider compensation package. Ask whether bonuses, allowances and other payments count.
Here is an illustrative comparison, not a Powercode Group quote:
- Base salary: €80,000 × 20% = €16,000.
- Salary plus an assumed €10,000 bonus: €90,000 × 20% = €18,000.
- Difference: €2,000, even though both quotes say “20%”.
Now ask which event triggers the fee. Candidate introduction, offer acceptance and the first working day are different events. Read the agreement rather than assuming “paid on hire” means paid on start.
Request a worked invoice using your expected salary and the actual terms. It should show the fee base, rate, payment date and tax treatment. That makes quotes easier to compare than a percentage sent in an email.
For the engineer’s salary or ongoing engagement cost, use our separate guide to the cost of hiring a developer. This article focuses on the agency charge and the work it buys.
Which fee model fits your hire?
Contingency recruitment
Under a contingency arrangement, the recruitment fee depends on a successful placement as defined in the agreement. This can suit a clearly specified permanent role when you do not want to fund the search upfront.
Check whether the role is exclusive, when a placement counts and how the agency handles someone you already know. Success-based payment does not remove your need to assess technical fit.
Retained search
A retained search involves a paid commitment to the search process. Payments may follow agreed milestones, with some money due before anyone joins.
It can be worth considering when the agency needs to conduct a defined search for a difficult role. Ask what research, candidate contact and reporting the retainer actually buys. The label does not guarantee a better shortlist or a completed hire.
Fixed-fee or deposit-plus-placement recruitment
A fixed fee makes the placement charge easier to budget, provided the scope is clear. A deposit-plus-placement arrangement combines an initial payment with a further charge if the hire succeeds.
Ask whether the deposit is deducted from the final fee, whether it is refundable and what happens if you pause or change the role. Compare the total payable amount, not just the first invoice.
Embedded recruitment
An embedded recruiter works within your hiring process under an agreed capacity arrangement. That may involve recurring fees, placement charges or both.
This is a different buying decision from filling one vacancy. Compare the committed cost across the period with the number and type of roles you genuinely expect to open. Do not commit to a hiring volume simply to unlock a discount.
Staff augmentation
With staff augmentation, you buy engineering capacity rather than only an introduction to a permanent employee. Compare the agreed rate, hours, notice, responsibility and any conversion charge if you later want a direct hire.
Our dedicated-developer comparison explains the capacity options. For who directs the work and accepts delivery, see staff augmentation versus outcome-based engineering.
What should placement agency fees include?
Ask the agency to describe the work it owns. Useful questions are more specific than “Do you vet candidates?”
- How will you turn our role brief into a search?
- Which must-have skills will you check before an introduction?
- Will you confirm the candidate’s interest, location, availability and expected pay?
- What evidence comes with each recommended candidate?
- Who coordinates interviews and offer discussions?
- What remains our responsibility after the hire starts?
For example, a DevOps shortlist should distinguish infrastructure improvement from production support. A QA shortlist should reflect whether you need exploratory testing, automation or both. Technical fluency matters because it improves the brief and the evidence, not because a recruiter must answer a surprise engineering quiz.
Keep your own assessment focused on the intended job. Our developer assessment guide shows how to use a practical exercise and consistent criteria.
“Compare the fee against the work the agency owns, the evidence it provides and the protection in the agreement. A lower percentage is not better value if your team has to repeat the search and screening.”
Maciej Nasalski, Powercode Group
What happens if the hire leaves?
A replacement search, a credit and a cash refund are different protections. Find out which one the agreement offers, how long it applies and what conditions you must meet.
Ask when the protection starts, how quickly you must report a departure and whether exclusions apply if the role changes or you end the employment. Also check what happens if the agency cannot find a replacement.
These are terms to evaluate, not universal entitlements. Avoid assuming that every agency owes a refund or that one fixed guarantee period is right for every engagement. For material commitments, have the agreement checked under the law that governs it.
The fee is only part of your hiring cost
Recruiting agency fees sit alongside the time your team spends reviewing candidates, interviewing and onboarding the person who joins.
Consider another illustrative calculation. Three engineers each spend two hours per week on recruitment for four weeks. That is 24 engineering hours. At an assumed internal cost of €60 per hour, the time has a cost allocation of €1,440.
Add the assumed €16,000 placement fee and those two items total €17,440, before applicable tax and other costs. This is not a complete cost-per-hire figure or a cash saving: salaried staff may be paid regardless, and their diverted time may affect delivery instead.
Do not count the same consequence twice. If you value the team’s lost delivery time, check whether a separate lost-revenue estimate already includes it. Record onboarding separately and compare the same period across options.
What can you negotiate?
Discuss the terms that affect your decision, not just the headline percentage. A clearer fee base, useful replacement protection or a payment schedule that fits your cash flow may matter more than a small discount.
Exclusivity or a real multi-role commitment can be part of that discussion. Put boundaries around either: which roles, for how long, what work the agency promises and what ends the arrangement. Do not promise future vacancies you have not funded.
Before signing, get written answers to these six questions:
- What exactly is the fee calculated on?
- When does it become payable, and what happens if the candidate never starts?
- What work is included and what costs extra?
- How are existing contacts and duplicate introductions handled?
- What replacement, credit or refund protection applies?
- What cancellation, notice or direct-hire charges could arise?
For UK agency-worker arrangements, GOV.UK explains that transfer fees can apply under specific conditions. Do not assume those rules govern a DACH engagement or that permanent recruitment and worker supply are legally interchangeable.
Frequently asked questions
How much does a recruitment agency charge for one developer?
Ask for the agency’s actual fee and calculation base. A percentage quote depends on the agreed salary definition; a fixed-fee quote depends on its scope. At an assumed €80,000 base salary and 20% rate, the fee is €16,000 before applicable tax. That example is not a market average.
What is an employment agency fee?
It is a charge for an agreed recruitment or staffing service. The term can cover different arrangements, so establish whether the bill is for a permanent placement, search work or ongoing worker supply. Job agency fees should not be compared without that distinction.
Do job agencies charge candidates?
For ordinary tech work in Great Britain, agencies cannot charge work-seekers for finding work. GOV.UK guidance describes the rule and sector exceptions. Other countries have their own rules. This employer-focused guide does not establish candidate-fee rights worldwide.
Are fees charged by recruitment agencies negotiable?
You can ask to change the price or terms; the agency does not have to agree. Compare the full scope, payment trigger and protection after any revision. A discount that removes useful work or creates a commitment you do not need may be poor value.
Choose the hiring route before comparing the invoice
If you need a permanent employee, discuss the role through Powercode Group’s IT recruitment and talent acquisition service. If you need engineering capacity within your existing team, compare staff augmentation instead.
Bring the role, location, expected working arrangement and budget. Confirm the actual offer and terms before committing; neither route makes technical fit or onboarding someone else’s problem by default.
