The average recruitment agency fees across countries in Europe can vary depending on a variety of factors, including the type of position being filled, the level of experience required, and the job’s location. Furthermore, recruitment agency fees will always be negotiated between the agency and their client so will naturally fluctuate relative to the strength of that relationship, general market conditions, and other key drivers, like whether the candidate search is exclusive to that single recruiter.
In general across Europe, recruitment agency fees are calculated as a percentage of the candidate’s first-year salary and paid on a contingency basis (upon success). However, retained payments to recruitment agencies have become more common in recent years, and recognise the effort and expense a recruiter has to go to when undertaking a candidate search. The latter, though, is more common in executive search, or high-level managerial roles.
In Europe, recruitment agency fees typically range from 15% to 30% of the candidate’s first-year salary, however, this can vary significantly by country, industry sector, and seniority of role. Here are some examples of average recruitment agency fees we typically see in different European countries:
- United Kingdom: 15% to 20% of the candidate’s first-year salary
- Germany: 15% to 30% of the candidate’s first-year salary
- France: 20% to 25% of the candidate’s first-year salary
- Spain: 15% to 20% of the candidate’s first-year salary
- Italy: 20% to 30% of the candidate’s first-year salary
It’s important to note that these are general ranges, and quite broad. Recruitment agency fees will swing by five to ten percentage points between sectors like Banking and IT (where high recruitment agency fees are the norm), relative to sectors like Healthcare or Logistics (which will typically pay lower fees).
UK Recruitment Agency Market
According to the 2021/22 Recruitment and Employment Confederation’s (REC) Trends Survey the recruitment industry is growing significantly in the UK, with an estimated 21.7% increase in Gross Value Added (GVA) from 2020 to 2021. Indeed, recruitment companies contributed £42.9 billion to the UK economy in 2021, and it’s estimated this could grow to £51.3 billion by 2025.
Recruitment agencies made an estimated 547,692 placements in the UK during 2021, and there were 30,035 recruitment agencies operating; ten years ago there was approximately 19,000 – a whopping 56% increase. This growth and fragmentation of the recruitment industry is caused by consultants starting up on their own, with 79% of all recruitment agencies being small businesses with fewer than 10 employees.
The number of permanent recruitment agencies in the UK fell from 11,355 in 2021 to 10,880 in 2022, driven by the Covid-19 pandemic. Temporary recruitment agencies didn’t echo the same trend, though, seeing a very slight increase year-on-year from 16,755 in 2021 to 16,855 in 2022.
Recruitment Agency Fees in the UK
The average recruitment agency fee in the UK can vary depending on a variety of factors, such as the level of expertise required for the position, the type of industry, and the location of the vacancy or recruitment agency. However, in general, recruitment agency fees in the UK range from 15% to 20% of the candidate’s first-year salary. Here are some examples of average recruitment agency fees in the UK by sector:
- IT and Technology: 15% to 20% of the candidate’s first-year salary
- Accounting and Finance: 15% to 20% of the candidate’s first-year salary
- Sales and Marketing: 15% to 20% of the candidate’s first-year salary
- Healthcare: 10% to 20% of the candidate’s first-year salary
- Engineering: 15% to 20% of the candidate’s first-year salary
- Executive search: 15% to 25% of the candidate’s first-year salary
Again, it’s important to note that these are general ranges, and recruitment agency fees can vary depending on the specific agency, the level of expertise required for the position, and location. Additionally, some recruitment agencies in the UK may charge additional fees for services such as background checks or skills assessments. When working with a recruitment agency in the UK, it’s always a good idea to carefully review their fee structure and to negotiate the fees if possible.
Alternatively, use Hiring Hub’s recruitment agency marketplace, which makes finding and working with specialist recruitment agencies much easier. You also get to set your fee upfront, when posting your job, to avoid awkward negotiations. Visit the website to learn more or get started.
Germany
It’s difficult to provide an exact number of recruitment agencies in Germany, as there are many small and medium-sized agencies that may not be easily identified or registered with industry associations. However, according to a 2020 survey by the German Association of Personnel Service Providers (BAP), there are over 7,500 personnel service providers registered in Germany. This includes both temporary staffing agencies and recruitment agencies that focus on permanent placements. It’s important to note that this number includes a range of different types of agencies, including large multinational firms and smaller local agencies.
Recruitment Agency Fees in Germany
In Germany, the typical recruitment agency fee can vary by sector, as well as by the level of experience required for the position being filled, but fees are generally higher than the UK, ranging from 15% to 30% of the candidate’s first-year salary. Here are some examples of typical recruitment agency fees by sector in Germany:
- IT and Engineering: 18% to 25% of the candidate’s first-year salary
- Finance and Accounting: 15% to 25% of the candidate’s first-year salary
- Sales and Marketing: 15% to 20% of the candidate’s first-year salary
- Human Resources: 15% to 20% of the candidate’s first-year salary
- Healthcare: 15% to 20% of the candidate’s first-year salary
It’s important to note that these offer a general guide and recruitment agency fees can vary depending on the specific agency and the level of expertise required for the position. Additionally, some recruitment agencies in Germany may charge additional fees for services such as background checks or skills assessments.
When working with a recruitment agency in Germany, it’s always a good idea to carefully review their fee structure and to negotiate the fees if possible. Or to use a recruitment agency marketplace, like Hiring Hub, which can connect you to specialist recruitment agencies in Germany, that will work to a fixed fee that you set upfront.
France
According to a 2021 report by the French Association of Private Employment Agencies (Prism’emploi), there are c.28,000 private employment agencies registered in France. This number includes both temporary staffing agencies and recruitment agencies that focus on permanent placements.
Recruitment Agency Fees in France
The fees charged by French recruitment agencies can vary depending on several factors, including the type of position being filled, the level of expertise required for the position, and the location of the agency. Generally, recruitment agency fees in France range from 20% to 25% of the candidate’s first-year salary. Here are some examples of the average recruitment agency fees in France by sector:
- IT and Technology: 18% to 25% of the candidate’s first-year salary
- Finance and Accounting: 20% to 25% of the candidate’s first-year salary
- Sales and Marketing: 20% to 25% of the candidate’s first-year salary
- Human Resources: 18% to 25% of the candidate’s first-year salary
- Healthcare: 18% to 25% of the candidate’s first-year salary
Again, it’s important to note that these are general estimates, and recruitment agency fees can vary depending on the specific agency, the level of expertise required for the position, and the location of the agency. Additionally, some recruitment agencies in France may charge additional fees for services such as background checks or skills assessments.
