Important notice - We are aware of a scam where people are impersonating CMD Recruitment to offer jobs via WhatsApp & Telegram. This is a scam, CMD Recruitment will never contact new candidates via these methods. Any legitmate offer from CMD Recruitment would be made via a telephone call.
October 15, 2026
How much does it cost to use a recruitment agency in 2026? It’s a common question for employers, but recruitment agency fees aren’t always easy to find. The answer also depends on whether you’re hiring someone permanently or bringing in temporary staff.
Here’s how fees work in the UK in 2026, what you’re paying for and the questions worth asking before you sign anything.
At a glance
Most agencies only charge when they fill the role. What you pay depends on the type of hire.
Permanent hires
A one-off fee, usually a percentage of the first year’s salary.
Temporary staff
An hourly charge rate that covers pay, on-costs and the agency’s margin.
Senior searches
Often a retained fee, paid in stages as the search progresses.
For a permanent hire, most agencies work on a contingency basis. That means you pay nothing unless you take on a candidate they introduced.
The fee is a percentage of the new starter’s first-year salary. Across the UK it typically falls between 15% and 25%, and it can be higher for senior or hard-to-fill roles. To give you a feel for the numbers, here’s what those percentages look like at three salary levels.
| Starting salary | Fee at 15% | Fee at 20% | Fee at 25% |
|---|---|---|---|
| £28,000 | £4,200 | £5,600 | £7,000 |
| £40,000 | £6,000 | £8,000 | £10,000 |
| £60,000 | £9,000 | £12,000 | £15,000 |
For illustration only. Fees are normally quoted before VAT, and the actual fee will depend on the role and the terms you agree.
For senior or specialist roles, some employers choose a retained search. The fee is paid in stages, often at the start of the search, when a shortlist is presented and when the candidate is appointed. In return, the agency sets aside time and resources to focus on filling the role. Retained fees are usually higher than contingency fees because of the additional work involved.
If you’re happy to give one agency the role exclusively for a set period, ask whether that changes the fee. Many agencies will offer better terms in return.
Temporary staff are usually charged by the hour. The cost can vary depending on the type of work, the experience needed and the hours involved. For example, a role requiring specialist skills may cost more than a general administrative position. The agency pays the worker and invoices your business at an agreed hourly rate, which covers several costs.
| What’s in the rate | What it covers |
|---|---|
| Worker’s pay | At least the National Living Wage, which is £12.71 an hour for workers aged 21 and over. |
| Holiday pay | Temporary workers build up paid holiday for every hour they work. |
| Employer’s National Insurance | 15% on earnings above £5,000 a year in 2026/27. |
| Pension contributions | Employer contributions for workers who are enrolled in a workplace pension. |
| Agency margin | Recruitment, vetting, payroll and looking after the booking. |
VAT is charged on the full hourly rate, not just the margin.
Worth asking
Ask for the charge rate to be broken down in writing, so you can see the pay rate and the margin separately.
There’s quite a bit of work involved in finding the right person for a job. From advertising the vacancy and going through applications to arranging interviews, it can take up a lot of time, especially when you’re juggling it all alongside your usual day-to-day work.
When comparing recruitment agency fees, it’s worth thinking about the time you could save and what it might cost to handle everything yourself.
What the agency does
What doing it yourself costs
It may be tempting to go with the lowest fee you find, but there are other things you should factor in. Ask about the agency’s experience, how they find candidates and whether they’ve recruited for similar roles before. You want to make sure they understand what you’re looking for and can help you find someone who’s a good fit for your business.
Recruitment fees and contract terms vary between agencies, so it’s worth checking the details before you commit. Make sure you understand what’s included in the fee, when payment is due and what happens if a placement doesn’t work out.
Before you sign
We’ve been recruiting for employers across Wiltshire and Bath since 2004, covering permanent, temporary and contract roles. Our terms are agreed with you in writing before any work starts, so you know where you stand from day one.
If you’d like a quote for a role you’re looking to fill, get in touch with our team and we’ll talk it through.
Want a quote for your vacancy?
Tell us about the role and we’ll explain exactly what it would cost.
