Permanent placement fees: percentage, fixed fee and what applies

The two models

Percentage of first year salary

The long standing convention, invoiced when the candidate starts. It scales with the value of the role, which suits both sides at the extremes. Market convention for mid level permanent roles in 2026 sits in the mid teens to low twenties percent, moving below that on committed volume and above it for scarce or hard to fill roles. This is market habit, not a rule: nobody publishes or enforces a rate.

Fixed fee per hire

A flat sum agreed in advance regardless of salary, sometimes staged across the process. It gives budget certainty, it removes the argument about what counts as salary, and it tends to be available where the agency expects to fill the role quickly or where volume is committed.

Define the salary the percentage applies to

This is where percentage based invoices diverge from expectation. Agree in the terms of business whether the calculation is on basic salary only, or on a package figure that could include a car allowance, a guaranteed bonus, a shift premium or an on target commission. On roles where variable pay is a large part of the reward, the difference between those definitions is larger than the difference between two agencies' percentages. Ask for a worked example on a specimen salary before you sign anything.

The terms that change the number

• Rebate or replacement. What happens if the person leaves early, over what period, and on what scale. Covered in the rebate guide.
• Introduction periods. How long after an introduction a fee remains payable if you hire that candidate later. This clause catches employers who interviewed months earlier and hired directly afterwards.
• Second hires from one introduction. Whether a fee is payable if you hire a second candidate the agency introduced for a different role.
• Advertising and assessment. Whether any additional charges sit outside the placement fee.
• Payment terms. When the invoice falls due relative to the start date, and whether it is payable before the rebate period has even run.

Where the employer has real leverage

1. Commit volume honestly. An agency pricing three hires prices differently from one pricing a single vacancy, and inflated forecasts damage the relationship when they do not materialise.
2. Offer exclusivity for a defined window rather than open ended. Agencies invest more where they are not racing three competitors, and a time limited exclusive costs you little.
3. Ask for the fee calculation base in writing, with an example.
4. Ask for a longer rebate period rather than a lower percentage. It is often conceded more readily and is worth more if a hire fails.
5. Give feedback within a day. It sounds soft, but it is the single thing agencies price into their willingness to prioritise a client.

Percentages described on this page are market convention as understood in 2026 and are labelled as such. They are not published averages, no body sets or enforces them, and every term is negotiable. Get written terms of business before instructing.