EMPLOYER COST GUIDE
How to compare recruitment agency fees.
Compare the work included in the quote as well as the price. Recruitment agency fees vary with the service, role and agreed terms, so there is no single rate that fits every hire.
Start with the type of recruitment service
Permanent recruitment may be quoted as an agreed fixed amount or a percentage of a defined remuneration base. Some searches involve staged or retained payments; others make a fee payable when specified engagement conditions are met. Temporary and contract staffing can use a different charging structure. Ask the agency to explain its actual model instead of assuming one format applies.
A quote should identify the currency, applicable taxes and the scope of work. The agreed terms determine when payment becomes due and what happens if the search changes or stops. Check the complete proposal before committing.
Ask these questions before comparing prices
- What is the fee calculated on? If it is a percentage, ask which remuneration components are included in the calculation.
- What does the quote cover? Confirm sourcing, screening, assessment, references, advertising and interview coordination, where relevant.
- Are there extra costs? Ask about agreed advertising, checks, travel or other charges outside the quoted service.
- When is payment due? Clarify any deposit, milestones, placement trigger and invoice terms.
- What conditions apply? Read replacement or refund provisions, time limits, exclusions and any employer obligations.
- What happens if the brief changes? Discuss cancellation, a different role or additional hires before they occur.
Compare like-for-like proposals
Give each recruiter the same hiring brief. Record the quoted fee, its calculation basis, included work, consultant responsible, communication arrangements and conditions side by side. A lower quote with fewer services is not the same offer as a higher quote with a broader scope.
For a percentage quote, ask for a worked calculation using the remuneration assumptions agreed for your actual role. That reveals differences that a headline percentage can hide. For temporary or contract work, ask what the charge includes and which responsibilities remain with your business.
Use the recruiter profile as context
Relevant sector experience and delivery capacity matter alongside commercial terms. Ask which person will manage the search and how they will assess candidates against the brief. The recruitment agency comparison guide helps you assess service fit before deciding.
On TalentChoice, employers can browse recruiter profiles and compare available rate information through the relevant verification steps. Not every recruiter displays every fee, and displayed information does not replace confirmation of a quote for your vacancy. Start in the Australian recruiter directory, then ask your chosen recruiter to explain the final scope and terms.
Keep a written record of the decision
Retain the agreed brief, proposal and terms together. Make sure the people approving the hire understand the service and payment conditions. If something is unclear, resolve it with the agency before work begins rather than relying on an assumption from a headline rate.