How Much Is a Recruitment Placement Fee? US, Europe and Overseas Hires
What agencies charge to fill a permanent role, how each fee model works, when you pay, who pays, and what changes when you hire overseas. With a calculator for your own numbers.
How much is a placement fee? For a permanent hire, most agencies charge a percentage of the person’s first-year pay. SHRM puts contingency fees, paid only if the agency fills the role, at about 20–25% of first-year cash compensation, and retained executive search at about 33%. The employer pays the fee, not the candidate. On an $80,000 salary, 20% is $16,000; on an overseas hire earning $1,500 a month, the same 20% is $3,600.
The four ways agencies charge
Almost every quote you’ll see is one of these, or a mix.
% of first-year pay
Contingency
SHRM: usually 20–25% of first-year cash compensation (salary, bonus and signing bonus), paid only if the agency fills the job.
Best for: Most permanent hires below executive level
% of first-year pay, in instalments
Retained search
SHRM: an industry standard of about 33% of salary, bonus and signing bonus; the firm is paid whether or not it fills the role.
Best for: Executive and very senior searches
A fixed amount per hire
Flat fee
Agreed upfront for a role; doesn’t move with the final salary.
Best for: Repeat roles with similar pay
A monthly fee for as long as the person works
Monthly staffing or EOR
The provider stays in the middle: payroll, contracts or employment for a monthly fee or margin.
Best for: When you want someone else to run payroll and admin
For a side-by-side of platform fees, freelance marketplaces and agencies, see EOR vs staffing agency vs Upwork.
When the money changes hands
The percentage gets the attention, but the timing changes your risk. With contingency you pay nothing until someone starts; with retained search you pay during the search; with monthly models you keep paying for as long as the person works.
See the payment timing as a table
| Model | How the fee is set | When you pay |
|---|---|---|
| Contingency | % of first-year pay | Once, when the hire starts |
| Retained search | % of first-year pay | Usually in thirds: engagement, shortlist, hire |
| Flat fee | Fixed amount | Once, on hire |
| Monthly staffing or EOR | Monthly fee or margin | Every month while the person works |
What is the placement fee in Europe?
European agencies use the same basic models: a percentage of first-year salary for permanent hires, and a margin on hourly or monthly pay for temporary staff. There is no official European rate, and agencies rarely publish one, so ask for the percentage, the salary it applies to and the guarantee in writing before the search starts.
Two rules worth knowing, whichever side of the hire you’re on:
Private employment agencies shall not charge, directly or indirectly, in whole or in part, any fees or costs to workers. Governments can authorise exceptions for certain categories of workers or services.
An employment agency shall not request or receive any fee from a person for finding or seeking to find them employment, except in cases the Secretary of State prescribes.
In other words, the employer pays the placement fee. If you’re a candidate and an agency asks you for a “placement fee” to get a job in Europe, check the local rules before paying anything.
What changes when you hire overseas
A percentage fee scales with salary, so the same percentage on an overseas salary is a much smaller number. These examples apply 20% to different first-year salaries. They’re arithmetic, not quotes.
See the examples as a table
| Example hire | First-year salary | Fee at 15% | Fee at 20% | Fee at 25% |
|---|---|---|---|---|
| US hire, $80,000 salary | $80,000 | $12,000 | $16,000 | $20,000 |
| US hire, $50,000 salary | $50,000 | $7,500 | $10,000 | $12,500 |
| Overseas developer, $2,900/month | $34,800 | $5,220 | $6,960 | $8,700 |
| Overseas SDR, $1,500/month | $18,000 | $2,700 | $3,600 | $4,500 |
| Overseas VA, $1,000/month | $12,000 | $1,800 | $2,400 | $3,000 |
Two costs often sit next to the placement fee on an overseas hire: the contract and the international payment. Some providers charge for those monthly, for as long as the person works for you. Model your own numbers in the overseas hiring cost calculator, and see how to pay international employees.
8 things to check in any fee agreement
- What counts as “salary”Base only, or base plus bonus and signing bonus? SHRM’s figures use first-year cash compensation.
- When the invoice is dueOn offer, on start date, or after the first month?
- The guaranteeHow long, replacement or refund, and what voids it
- ExclusivityAre other agencies, or your own team, allowed to fill the role?
- Candidate ownershipHow long an introduced candidate counts as “theirs” if you hire later
- Upfront paymentsAny retainer, deposit or engagement fee before you see candidates
- Hiring overseasWho handles the contract and international payment after the hire
- Monthly costsAnything charged every month on top of salary, and for how long
More questions for agencies are in 7 questions to ask before hiring a global staffing agency.
How Talentige charges
One-time placement
Your employee. One-time fee.
Based on annual salary. Pay only when you hire. 90-day free replacement.
Month-to-Month
From $2,000/mo
All-inclusive. No placement or setup fees. Cancel anytime.
Neither option has upfront recruitment fees. We quote the exact fee on your free call, before you commit. Full details on pricing, and the process on how it works.
Want an exact quote for your role?
Tell us the role, country and hours. We’ll quote the fee and show what a realistic hire earns, before you commit to anything.
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Placement fee FAQs
How much is a recruitment placement fee?
How much is the placement fee in Europe?
Who pays the placement fee, the employer or the candidate?
What is the difference between contingency and retained recruitment?
Is a placement fee cheaper for overseas hires?
Do I pay a placement fee if the hire leaves?
How does Talentige charge?
Sources
- SHRM, “How to Work Effectively with an Executive Search Firm” (2016): retained search industry standard about 33% of the role’s annual salary, bonus and signing bonus; contingency recruiters usually earn about 20–25% of first-year cash compensation, only if they fill the job. shrm.org
- International Labour Organization, Private Employment Agencies Convention, 1997 (No. 181), Article 7. ilo.org
- Employment Agencies Act 1973, section 6, “Restriction on charging persons seeking employment, etc.” (as amended). legislation.gov.uk
- Talentige pricing (as of October 2026): One-time placement and Month-to-Month options; example overseas pay figures from typical Talentige placement ranges.