When comparing recruitment agency fees, you’ll generally come across two main models: a fee per hire (a percentage of the annual salary upon a successful placement) and a fixed fee (an agreed price, independent of the final salary). Which model works out more cost-effectively for you depends on your recruitment volume, the type of role and how predictable your costs need to be.
Many employers focus solely on the fee itself. The real question is broader: what do you get for that amount, how many vacancies do you want to fill, and how predictable do you want your recruitment costs to be? Below, you can read about how to compare the two models.
What does ‘fee per hire’ mean, and what does a fixed amount mean?
With a ‘fee per hire’ model, you only pay once someone has been hired, usually a percentage of their gross annual salary. With a fixed fee, you agree on a single price in advance for the assignment or for a campaign period, regardless of the candidate’s salary. The first model shifts the risk to the agency, whilst the second makes your costs predictable.
The fee-per-hire model has historically been the best-known model in recruitment and selection. You often pay between 15% and 25% of the annual salary, which means that a higher-paid role automatically results in a higher invoice.
A fixed fee is usually associated with recruitment marketing and data-driven campaigns. You pay for the process and the reach, not for the salary level of the eventual candidate. With positions that are regularly advertised, that difference quickly becomes apparent.
When should you opt for a fee per hire?
A fee-per-hire model is best suited if you occasionally need to fill a single specific role and the agency is required to bear the full risk. You pay nothing if no results are achieved, but you pay a substantial fee as soon as the placement is successful, particularly in the case of high salaries.
Would you like to find out more about data-driven recruitment?
- Recruitment using AI and data
- Takes an average of 3–8 weeks to complete
This model works to your advantage when there is a one-off senior or management vacancy for which you lack the time or the network yourself. You’re buying peace of mind: no result, no invoice.
The turning point comes with repetition. If you need the same types of candidates every month – for example, fitters, drivers or welders – a percentage charge per placement really adds up. With a volume of vacancies that keeps recurring, a ‘fee per hire’ model effectively means you’re paying for the same recruitment work over and over again.
- Advantage: no charge unless results are achieved.
- Advantage: an attractive option for a one-off vacancy that is difficult to fill.
- Drawback: costs rise in line with salary.
- Disadvantage: expensive for ongoing or high-volume recruitment.
When is a fixed amount more cost-effective?
A fixed fee is more cost-effective if you have several vacancies each year or require a predictable budget. Your costs are fixed in advance and do not fluctuate in line with salary levels or the number of placements. For employers with recurring blue-collar or technical vacancies, this model often works out more favourably.
With data-driven recruitment marketing, you pay for an approach that actively attracts top talent via channels such as Meta, Google, LinkedIn and TikTok. The investment remains the same, regardless of whether the candidate earns 3,000 or 5,000 euros a month. At FosFor, vacancies are filled in this way within 3 to 8 weeks on average, with you, as the client, interviewing only the 2 to 4 best candidates each month.
A fixed fee also makes recruitment more scalable. If you want to move from one-off recruitment costs to a structured intake, you decouple your costs from the random nature of a single placement. Find out how our data-driven approach which builds predictability using labour market and target group data.
How can you compare recruitment agency fees fairly?
Compare recruitment agency fees fairly by looking not just at the fee itself, but at the total cost per hire and what you get in return. Take hidden costs into account: the time the vacancy remains unfilled, the time you spend on applicants, and the risk of making a bad hire. Only then will you see which model is actually better value for money.
The table below compares the two models side by side in terms of the factors that determine your invoice.
| Aspect | Fee per hire | Fixed fee (recruitment marketing) |
|---|---|---|
| Basis of the price | Percentage of annual salary | Agreed amount in advance |
| Cost predictability | Low (varies depending on installation) | High (fixed in advance) |
| Dear bee | One-off vacancy | Recurring or multiple vacancies |
| Effect of a high salary | Higher invoice | No impact on price |
| Focus | Filling a single vacancy | Attracting candidates on a long-term basis |
Furthermore, a vacant post costs money as long as it remains unfilled. According to the UWV, technical and industrial roles are among the most difficult to fill in the labour market (UWV Labour Market Tension Indicator, 2024), which significantly drives up the vacancy costs for those roles. The CBS also reports persistently high vacancy pressure, with hundreds of thousands of unfilled vacancies (CBS, 2025). That time is factored into your actual cost per hire.
“Employers often focus too narrowly on the pay rate, whilst the number of weeks a position has been vacant and the time spent on applicants usually carry more weight,” is a recurring insight from the campaigns FosFor runs. Would you like to see that reflected in figures? Take a look at our measurable recruitment results by sector.
Which cost items do you tend to overlook when comparing?
The biggest mistake when comparing rates is to ignore indirect costs. As well as the agency fee, you’ll incur costs relating to vacancies, internal working hours and the risk of a mismatch. These factors often have a greater influence than the rate itself in determining which model is the most cost-effective.
- Vacancy costs: lost production or turnover whilst the post remains vacant.
- Internal hours: your and your team’s time spent screening CVs and conducting interviews.
- Advertising costs: job board platforms and campaigns that you continue to pay for yourself.
- Risk of a false assumption: An employee leaving during their probationary period means starting all over again.
- Repeat costs: With ‘fee per hire’, you pay the full amount again for each recurring vacancy.
It is precisely this shortlisting process – narrowing the field down to 2 to 4 candidates per month – that frees up your team’s time. Instead of assessing dozens of applications, you only evaluate the candidates who really matter. This saves time and reduces your overall cost per hire, even if the rate appears higher on paper.
Step-by-step guide: how to make a fair price comparison
Make a fair comparison of rates by calculating both models based on your specific situation, rather than on the individual rate. Follow these steps to work out the actual costs per assumption.
- Determine your annual recruitment volume by job type.
- Calculate the total costs for each model, including vacancy costs and internal hours.
- Estimate your average annual salary to ensure the fee per hire is realistic.
- Compare the predictability: does a fixed budget fit in better with your planning?
- Consider what you get in return: just the role itself, or a stronger employer brand as well?
Are you unsure which model suits your recruitment needs? Read on first the difference between recruitment marketing and recruitment strategy, or Book a no-obligation strategy meeting where we work through the figures for your job vacancies together. Want to know more about the approach behind these figures? Find out Why FosFor brings top players together with top-tier organisations.
Frequently asked questions about recruitment agency fees
Which is better value: a fee per hire or a fixed amount?
That depends on your volume. For a single vacancy, a fee per hire often makes sense, as you only pay when a successful placement is made. For multiple or recurring vacancies, a fixed fee is usually more cost-effective, as your costs do not increase in line with the salary or the number of placements.
Why do recruitment agencies often not quote a fixed price?
This is because costs depend on the type of role, the availability of candidates, the region and the volume of work. A welder in the shipbuilding industry requires a different approach to a sales role. A good recruitment agency will first carry out a target audience analysis and then provide a well-reasoned proposal, rather than quoting a standard rate up front.
How do I calculate my true cost per hire?
Add the agency fee to your internal hours, advertising costs, vacancy costs and the risk of a bad hire. Divide that total by the number of successful hires. This will show you the actual costs, which are often considerably higher than the individual rate stated on the invoice.
Is recruitment marketing cheaper than secondment?
For long-term recruitment, recruitment marketing is often more cost-effective, as you hire an employee directly rather than paying an hourly rate on an ongoing basis. For temporary or peak-period needs, secondment may be more suitable. The choice depends on how long you need the additional capacity.
If I’ve agreed to pay a fixed fee, do I still have to pay even if the vacancy isn’t filled?
That varies depending on the agreement. With data-driven campaigns, you pay for the process and the reach, with clear agreements on results. At FosFor, the focus is on a sustainable flow of high-quality candidates, with weekly meetings to discuss campaigns, results and next steps, so you always know where you stand.
Do you want to stop paying for the same vacancy over and over again? Turn your recruitment costs into a predictable, sustainable flow of candidates and request a no-obligation consultation about the model that suits your job vacancies.