Recruitment agency fees in 2026: what to charge your clients

We work with hundreds of recruitment agencies. Every month someone asks us what they should be charging. The answer depends on your sector, your model, and how much leverage you have. But there are norms, and knowing them matters.

Here are the actual numbers for 2026 across the UK market. Not a vague "it depends." Real ranges based on what agencies on our platform charge.

Permanent placement fees

The standard for contingency perm recruitment is 15-20% of the candidate's first-year salary. That's been stable for years. Where you land in that range depends on a few things.

15% or below. High-volume, lower-skill roles. Admin, customer service, entry-level positions. Clients push hard on price here because they have options. If you're competing with five other agencies on the same role, you'll feel the pressure. Some agencies go as low as 12.5% to win volume contracts. That only works if you're filling multiple roles per month for the same client.

17.5-20%. The sweet spot for most specialist recruiters. Mid-level to senior professional roles. Accounting, engineering, IT, sales, marketing. If you know your market well and deliver quality shortlists quickly, 20% is reasonable and most clients won't negotiate.

20-25%. Senior and hard-to-fill positions. If the client has been trying to fill the role for months, or the skill set is genuinely rare, you have leverage. C-suite hires from executive search firms often go higher (see retained search below).

The 2026 trend. Fees have been flat or slightly down in volume sectors because of AI tools making in-house recruitment faster. But specialist and senior-level fees are holding firm. If you're a generalist, you'll feel the squeeze. If you're a specialist, your rates are safe.

Temporary and contract margins

Temp recruitment works differently. You're not charging a one-off fee. You're adding a margin on top of the worker's pay rate and billing the client the total.

Temp margin. Typically 15-30% on top of the worker's pay rate. For a worker earning £15/hour, you'd bill the client £17.25-19.50/hour. The margin covers your costs (employer NI, holiday pay, pension) plus your profit. Net profit after costs is usually 5-10%.

Contract margin. For professional contractors (IT, engineering, finance), margins are tighter. 10-18% is typical. Contractors are higher-value so the absolute numbers are better even at lower percentages. A contractor on £500/day with a 15% margin is £75/day to you. That adds up fast.

The catch with temp. You pay the worker weekly but the client pays you monthly (or worse, 45-60 days). That cash flow gap is real. If you're running a temp desk, you need either strong reserves or an invoice factoring arrangement. We covered this in the starting an agency guide.

Retained search fees

Retained search is a different model entirely. The client pays you upfront (or in stages) to exclusively fill a role. This is standard for senior and C-suite positions.

Typical structure. 25-33% of first-year salary, paid in three stages. One-third on engagement, one-third on shortlist presentation, one-third on placement. Some firms charge a flat project fee instead, especially for board-level appointments.

Why retained works. You get paid regardless of whether the hire is made. That might sound risky for the client but it means you commit serious time and resources to the search. Clients paying a retainer get dedicated research, market mapping, and a thorough process. Contingency clients get you working the role between other priorities. If you're running an executive search firm, retained is the model you should be building towards.

How to negotiate without discounting

Every client will try to negotiate your fee down. Here's how to handle it without racing to the bottom.

Don't lead with price. If the first thing you discuss is your fee percentage, you've already lost. Lead with what you offer. Speed, quality, market knowledge, candidate access. Then state your fee as a fact, not an opening position.

Offer volume discounts, not rate cuts. "I can do 17.5% on this one role. Or 15% if you commit to sending me all your accounting hires for the quarter." You protect your rate on individual roles while giving the client a reason to consolidate with you.

Rebate clauses instead of lower fees. "I'll stay at 20%, but if the candidate leaves within 8 weeks, I'll replace them for free or refund 50%." This addresses the client's real concern (risk) without touching your fee.

Walk away from bad deals. Some clients will push you to 10% and demand exclusivity. That's not a partnership, that's exploitation. The time you spend on a low-margin client is time you're not spending on a client who values what you do. Your sales pipeline should always have enough prospects that you can say no to a bad deal.

Fees by sector in 2026

Technology. 18-22% perm, sometimes higher for niche skills (AI/ML engineers, security). Contract margins 12-18%.

Finance and accounting. 17-20% perm. Well-established market with clear expectations. Contract margins 10-15%.

Healthcare. 15-18% perm. Temp margins are higher (20-30%) because of compliance overhead (DBS checks, registration verification).

Construction and engineering. 15-20% perm. Temp margins 18-25%. IR35 considerations affect contractor rates significantly.

Executive and C-suite. 25-33% retained. Rarely contingency at this level.

Industrial and warehouse. 12-15% perm. Temp margins 20-30%. Volume play. Low per-placement revenue but consistent demand.

When to raise your rates

If you're filling roles faster than the competition, if your candidates stick (low fallout rate), if clients come back without you chasing, your rates should reflect that. Review your fees annually. If you haven't raised them in two years and your fill rate is strong, you're leaving money on the table.

Track everything in your CRM. Time to fill, submissions per hire, candidate retention at 6 and 12 months. Those numbers are your evidence when a client pushes back on price. "Our average time to fill is 14 days and 92% of our placements are still in role after a year" is a lot harder to negotiate against than "we're really good."

For more on tracking the right numbers, read our guide on recruitment KPIs and reporting.