How Much Do Recruitment Agencies Charge in Australia?

Recruitment agencies in Australia can charge thousands or even tens of thousands of dollars to fill a single permanent position.

For permanent recruitment, a common pricing model is to charge a percentage of the successful candidate's first-year remuneration. As a broad guide, recruitment fees often sit around 15% to 25%, although specialist, senior and particularly difficult searches can move higher.

For blue-collar and trade recruitment, permanent placement fees around 15% to 20% of first-year remuneration are commonly seen. More specialised searches can reach 20% to 30% or more depending on the position and recruitment model.

That means hiring an $80,000 employee through a recruiter could potentially create a recruitment fee of $12,000 to $16,000 at a 15% to 20% rate.

For a small trade business, that's a substantial expense.

It can still be worthwhile when the recruiter solves a difficult hiring problem, but employers should understand exactly what they're paying for before signing an agency agreement.

How Do Recruitment Agencies Charge Employers?

There isn't one standard recruitment agency fee across Australia.

Agencies can use several different pricing models depending on the type of position and service being provided.

For permanent employees, the most common arrangement is a percentage-based placement fee. Temporary workers and labour hire are generally charged using an hourly or daily client rate instead.

Executive search and highly specialised recruitment may involve retainers, while some agencies offer fixed-fee recruitment.

Understanding the model is important because two agencies quoting "recruitment services" may actually be offering very different arrangements.

What Percentage Do Recruitment Agencies Charge?

For permanent recruitment, a broad Australian market range is roughly 15% to 25% of the successful candidate's annual remuneration for many ordinary professional and trade placements.

Entry-level or easier-to-fill positions can sometimes sit toward the lower end. More difficult, specialised and senior positions can push toward 25% to 30% or higher.

There are also recruiters operating below these ranges, particularly under high-volume, exclusive or fixed-fee arrangements.

The percentage shouldn't be considered a regulated or universal industry rate. Recruitment agencies set their own commercial terms.

Typical Recruitment Fees for Tradies

Trade recruitment often sits somewhere around 15% to 20% for permanent placements, although the actual figure varies considerably.

A straightforward carpenter or plumber vacancy in a major city may be priced differently from an experienced industrial electrician, diesel mechanic or maintenance fitter with specialised experience.

FIFO, mining and remote roles can also command higher fees when the recruiter needs to actively source a limited pool of candidates.

The difficulty of finding the worker is often more important than the trade itself.

What Does a 15% Recruitment Fee Cost?

Suppose you're hiring a tradesperson on an $80,000 remuneration package.

At a 15% recruitment fee, the agency charge would be approximately:

$12,000

If the employee's package were $100,000, the fee would be approximately:

$15,000

For a $120,000 package, it would be:

$18,000

This illustrates why even a relatively ordinary percentage can translate into a significant recruitment expense.

What Does a 20% Recruitment Fee Cost?

At 20%, the numbers increase quickly.

An $80,000 remuneration package produces a recruitment fee of approximately:

$16,000

A $100,000 package produces a fee of:

$20,000

And a $120,000 package produces:

$24,000

For small and medium trade businesses, this is why direct job advertising can be an attractive first option.

What Does a 25% Recruitment Fee Cost?

At 25%, an employer hiring someone on an $80,000 package would pay approximately:

$20,000

For a $100,000 employee, the recruitment fee would be around:

$25,000

For someone on $120,000, the fee reaches:

$30,000

These higher percentages are more likely to appear where the role is particularly difficult, specialised or senior.

Is the Fee Based on Salary or Total Package?

This is one of the most important questions to ask an agency.

Some recruiters calculate their fee on base salary.

Others calculate it on total remuneration, which may include superannuation and potentially guaranteed allowances or other components of the package.

For example, a recruiter charging 18% of base salary will produce a different invoice from one charging 18% of a package containing salary, super and a car allowance.

Employers should check exactly what the percentage is being applied to before agreeing to the terms.

Does Superannuation Count Towards the Recruitment Fee?

It can.

Some Australian recruitment agencies calculate placement fees using the candidate's remuneration package including superannuation rather than base salary alone.

That can noticeably increase the final invoice.

If an agency quotes "18% of remuneration", ask them to define remuneration clearly.

Don't assume it means the same thing as salary.

Do Allowances Count Towards the Fee?

They can as well.

A car allowance, site allowance or other guaranteed payment may sometimes be included in the remuneration figure used to calculate the fee.

Again, this depends on the agency's terms.

For trade employers where vehicles and allowances are common, this is worth checking before making an offer.

What Is Contingency Recruitment?

Contingency recruitment is one of the most common agency models for permanent hiring.

Under a typical contingency arrangement, the employer doesn't pay a placement fee unless the agency successfully introduces the candidate who is ultimately hired.

This can sound attractive because there is no successful placement, no placement fee.

The recruiter takes on the risk of doing recruitment work without necessarily receiving payment.

That risk is one reason contingency percentages can be significant.

What Is Exclusive Recruitment?

An exclusive recruitment agreement gives one agency the opportunity to fill the role for an agreed period.

Because the recruiter isn't competing against several other agencies for the same placement fee, they may be willing to provide different pricing or dedicate more resources to the search.

Some recruiters charge lower percentages for exclusive work than they do when working non-exclusively.

Whether exclusivity is worthwhile depends heavily on the agency.

Giving the wrong recruiter exclusivity can also slow the process, so employers should choose carefully.

What Is Retained Recruitment?

Retained recruitment involves paying at least part of the recruitment fee upfront.

Instead of the recruiter carrying all the financial risk until someone is hired, the employer commits money to the search.

This model is commonly associated with executive, senior and highly specialised recruitment.

Payments may be made in stages, such as a portion when the search begins and further amounts as milestones are reached.

Retained recruitment can be expensive, but the recruiter is generally committing more resources to a dedicated search.

Is Retained Recruitment More Expensive?

It can be, particularly for executive search.

However, retained doesn't automatically mean a higher percentage in every situation.

Some specialist recruiters actually offer lower rates for retained or exclusive work because the likelihood of being paid is greater.

The commercial arrangement matters as much as the headline percentage.

Employers should compare the total expected fee and service level rather than assuming one model is always cheaper.

What Is Fixed-Fee Recruitment?

Some agencies charge a fixed amount for each successful placement rather than a percentage of salary.

For example, an agency might quote a set fee of $6,000 or $10,000 to fill a particular role.

This provides the employer with much greater cost certainty.

It also means the recruitment fee doesn't automatically increase if the successful candidate negotiates a higher salary.

Fixed-fee recruitment can be particularly attractive for businesses making multiple similar hires.

Percentage Fee vs Fixed Fee

Neither approach is automatically better.

A percentage fee can make sense when the difficulty and value of positions vary substantially.

A fixed fee can make budgeting easier.

For higher-paid employees, a fixed fee may also become considerably cheaper than paying a percentage of salary.

Employers should compare the actual dollar amount rather than getting too focused on the pricing structure.

How Much Do Recruitment Agencies Charge for an $80,000 Employee?

At several common percentage rates, the approximate fees would look like this:

• 15% = $12,000
• 18% = $14,400
• 20% = $16,000
• 25% = $20,000

That is before considering whether GST applies to the agency invoice or whether the agency's calculation includes additional remuneration components.

Always request a written quote based on the actual role.

How Much Do Recruitment Agencies Charge for a $100,000 Employee?

For a $100,000 remuneration package:

• 15% = $15,000
• 18% = $18,000
• 20% = $20,000
• 25% = $25,000

At this salary level, even a relatively small change in the percentage makes a noticeable difference.

Negotiating an 18% fee instead of 20%, for example, represents a $2,000 difference on a $100,000 package.

How Much Do Recruitment Agencies Charge for a $120,000 Employee?

For a $120,000 remuneration package:

• 15% = $18,000
• 18% = $21,600
• 20% = $24,000
• 25% = $30,000

This is why agency fees become particularly important when recruiting higher-paid specialist trades, supervisors and technical workers.

What About GST on Recruitment Fees?

Recruitment agency quotes should make clear whether GST is included or added to the quoted fee.

A percentage calculation might produce a $15,000 recruitment fee, but that doesn't necessarily mean $15,000 is the final invoice amount.

Check the agency's terms and quote before budgeting.

For significant recruitment fees, misunderstanding whether a figure includes GST can create an unpleasant surprise.

How Does Labour Hire Pricing Work?

Labour hire is usually priced differently from permanent recruitment.

Rather than paying a one-off placement fee, the employer pays the labour hire company an hourly charge rate for the worker.

That charge rate needs to cover more than the worker's wage.

Depending on the arrangement, it can include superannuation, workers compensation, payroll-related costs, leave obligations where applicable, insurance, administration and the agency's margin.

The client therefore pays significantly more per hour than the amount the worker receives as wages.

Labour Hire Pay Rate vs Charge Rate

Imagine a tradesperson receives $50 per hour.

The labour hire company's client charge rate might be significantly higher once employment on-costs and its commercial margin are added.

The exact markup varies enormously by trade, industry, risk, state, shift conditions and agency.

This is why employers comparing permanent workers with labour hire should compare the total hourly client rate rather than simply looking at what the worker earns.

How Much Do Labour Hire Companies Mark Up?

There isn't one standard percentage.

Industry guides commonly show labour hire and contract margins or markups varying significantly, with the overall client rate often substantially higher than the worker's basic hourly pay.

For construction and trade labour hire, the difference has to cover statutory on-costs as well as the agency's own margin.

A $50-per-hour worker therefore doesn't mean a $50-per-hour invoice.

Employers should ask for a complete charge rate and confirmation of what is included.

Is the Entire Labour Hire Markup Profit?

No.

This is an important distinction.

The difference between the worker's hourly wage and the client's charge rate isn't simply the recruitment company's profit.

The agency may need to cover superannuation, workers compensation, payroll administration, payroll tax where applicable and other employment costs.

The remaining amount contains the agency's gross margin.

That's why comparing the worker's pay directly with the client's charge rate can exaggerate how much the agency is actually earning.

Labour Hire vs Permanent Recruitment Fees

Permanent recruitment generally creates a large one-off cost.

Labour hire spreads the recruitment and employment cost across every hour the worker performs.

That makes labour hire attractive when the employer needs additional workers temporarily or wants greater workforce flexibility.

However, a worker engaged through labour hire for an extended period can become considerably more expensive than employing someone directly.

The right option depends on how long you need the worker and why you're hiring.

Are There Temp-to-Perm Fees?

Sometimes.

If you hire someone through a labour hire company and later want to employ them directly, the agency agreement may include a transfer or temp-to-perm fee.

The amount and method of calculating it varies.

Some fees reduce the longer the worker has been supplied through the agency.

Employers planning to potentially convert labour hire workers to permanent staff should check these conditions before the placement begins.

What Is a Recruitment Agency Guarantee?

Many permanent recruitment agencies offer some form of replacement guarantee.

This generally means that if the employee leaves within an agreed period, the recruiter may conduct another search without charging a completely new placement fee.

Guarantee periods vary considerably between agencies.

A few months is common, while some recruiters offer longer guarantees.

The important detail is the actual conditions attached.

Does a Recruitment Guarantee Mean You Get a Refund?

Usually not automatically.

Many guarantees provide a replacement search rather than a cash refund.

The employer may also need to satisfy conditions such as paying the original invoice within the agency's payment terms and notifying the recruiter promptly when the employee leaves.

There can also be exclusions depending on why employment ended.

Read the guarantee clause carefully.

How Long Are Recruitment Guarantees?

There is no universal standard.

Depending on the recruiter and the arrangement, guarantees may range from only a few weeks to several months.

Some agencies offer longer guarantee periods as part of premium or exclusive arrangements.

A longer guarantee can add value, but it shouldn't be the only factor used to choose a recruiter.

Candidate quality and recruitment capability matter much more.

When Do You Pay the Recruitment Agency?

For contingency permanent recruitment, the invoice is usually triggered when the agency's candidate accepts or commences employment, depending on the contract.

Payment terms can then be relatively short.

Retained recruitment is different because part of the fee may be payable before anyone is hired.

Labour hire is generally invoiced regularly based on hours worked.

Always understand the payment timing before engaging an agency, especially if the placement fee will be $10,000 or more.

Are Recruitment Fees Negotiable?

Often, yes.

Recruitment fees are commercial agreements between the agency and employer.

An agency may be willing to negotiate based on hiring volume, exclusivity, the number of positions, the difficulty of the work or the existing relationship.

A company planning to hire ten tradespeople has considerably more negotiating power than an employer offering one difficult position to five competing recruiters.

However, chasing the absolute lowest percentage isn't always the smartest approach.

Why the Cheapest Recruitment Agency Isn't Always Best

Suppose Agency A charges 12% and Agency B charges 18%.

Agency A looks much cheaper.

But if Agency A sends ten irrelevant candidates and takes six weeks to do it, the lower fee doesn't help.

If Agency B finds an excellent candidate within a week, the larger fee may be worthwhile.

Recruitment should be judged on results as well as price.

What Are You Actually Paying the Recruiter For?

A good recruiter does considerably more than place an advertisement online.

They may help define the vacancy, advise on the candidate market, write advertisements, search their database, approach passive candidates, conduct interviews, verify work history, perform reference checks and coordinate negotiations.

They also spend time maintaining networks of candidates before you ever contact them.

When an agency fee reaches $15,000 or $20,000, employers should expect meaningful value from those services.

Active Sourcing Is a Big Part of the Fee

This is particularly relevant when hiring experienced tradies.

Many of the strongest electricians, mechanics, plumbers, fitters and technicians aren't actively searching for work.

They already have jobs.

A specialist recruiter may know these people or be able to identify and approach them directly.

That access to passive candidates is one of the clearest reasons an employer might pay an agency rather than relying entirely on a job advertisement.

How Much Might It Cost to Recruit an Electrician?

Suppose you're offering an electrician a $100,000 remuneration package and your recruiter charges 18%.

The placement fee would be approximately $18,000.

If the agency charged 20%, it would be $20,000.

Whether that's worthwhile depends on the position.

For an easily filled local role, direct advertising may be much more economical.

For a difficult industrial electrician vacancy that has remained open for months, the economics may be very different.

How Much Might It Cost to Recruit a Plumber?

If a plumber's package is $90,000 and the recruitment fee is 15%, the approximate fee would be $13,500.

At 20%, it would be $18,000.

Local plumbing businesses with strong industry networks may be able to avoid this expense through direct recruitment and referrals.

A recruiter may become more useful for specialised, supervisory or hard-to-fill positions.

How Much Might It Cost to Recruit a Diesel Mechanic?

Experienced diesel mechanics can be difficult to recruit, particularly for heavy equipment, mining and field-service roles.

On a $120,000 package, an 18% recruitment fee is approximately $21,600.

At 20%, it is $24,000.

For a mining role offering substantially more, the recruitment fee can climb quickly.

This is one reason recruiters may be particularly expensive in specialist technical sectors.

How Much Might It Cost to Recruit a Fitter?

Suppose a maintenance fitter is offered a $100,000 package.

At 15%, the agency fee would be $15,000.

At 18%, it would be $18,000.

At 20%, it reaches $20,000.

If the employer requires specific industrial experience, the recruiter may argue that the role sits toward the higher end of their pricing because sourcing suitable candidates requires more work.

How Much Might It Cost to Recruit a Boilermaker or Welder?

The cost depends heavily on the type of work.

A local workshop role and a specialist FIFO boilermaker position can have completely different candidate markets.

As remuneration increases, percentage-based agency fees increase with it.

For higher-paid shutdown or resources positions, employers should calculate the likely dollar fee before agreeing to a percentage.

How Much Might It Cost to Recruit a FIFO Tradie?

FIFO workers can receive relatively high remuneration, which makes percentage-based recruitment particularly expensive.

If a package is $140,000 and the fee is 18%, the agency charge is approximately $25,200.

At 20%, it is $28,000.

That doesn't necessarily mean the recruiter is overpriced.

It means employers need to understand how quickly percentage-based recruitment costs rise with salary.

Why Are Hard-to-Fill Roles More Expensive?

Recruiters may need to devote significantly more time to specialised vacancies.

Instead of advertising a job and screening incoming applicants, they might need to identify candidates individually, contact them, persuade them to consider leaving their current employer and manage a much longer hiring process.

There is also a greater risk that the agency spends considerable time on the position without making a placement.

That additional difficulty can be reflected in the fee.

Is Paying $15,000 to Recruit a Tradie Crazy?

Not necessarily.

It depends on the value of the vacancy.

Suppose the business is turning away $15,000 of profitable work every month because it doesn't have enough qualified employees.

Paying $15,000 to fill the position quickly could be economically reasonable.

The same fee might be very difficult to justify for an entry-level role that could have been filled through a $200 job advertisement.

Recruitment costs need context.

Compare Recruitment Fees With the Cost of the Vacancy

Before rejecting an agency based on price, estimate what the empty position is costing you.

That may include lost billable work, project delays, overtime, subcontractor costs and the owner's time.

A $20,000 agency fee sounds enormous in isolation.

It looks different if leaving the role empty for another three months is likely to cost the company $50,000.

This doesn't mean every recruiter is good value.

It means employers should compare the fee with the actual commercial problem being solved.

How Much Can You Save by Hiring Directly?

Potentially a lot.

If a recruiter would charge $15,000 to fill a position and you successfully fill it with a $200 job advertisement, the difference is enormous.

You still have your own internal recruitment time to consider, but direct hiring is generally far cheaper.

For businesses capable of managing applications and interviews themselves, it can make sense to try targeted job advertising before engaging an agency.

Direct Recruitment Works Particularly Well for Repeat Hiring

If you regularly hire electricians, plumbers, mechanics or apprentices, building your own recruitment system can significantly reduce long-term costs.

Learn which job boards generate suitable candidates.

Build an employee referral program.

Keep details of strong previous applicants.

Use your company website and social channels.

The more internal recruitment capability you build, the less frequently you need to pay large placement fees.

When Is a Recruitment Agency Worth the Money?

Agencies tend to provide the most value when the employer has a genuine sourcing problem.

Perhaps the candidate pool is extremely small.

Maybe the workers you need are already employed and need to be approached directly.

The vacancy might be confidential.

You may have no internal recruitment resources.

Or the business may need someone urgently enough that paying a large fee is preferable to continuing without the employee.

In those situations, a good recruiter can be well worth the cost.

When Is an Agency Probably Overkill?

For roles with strong applicant demand, paying a substantial placement fee may not make sense.

An apprenticeship is a good example.

If the employer can generate 100 applicants through direct advertising, there is little reason to pay $10,000 simply to receive another shortlist.

The same can apply to general labouring or common entry-level positions.

Use the recruitment method appropriate to the difficulty of the vacancy.

Try Job Advertising First

For many permanent trade jobs, direct advertising is a sensible first step.

Employers can use specialist trade job boards, major employment platforms, Workforce Australia, social media and employee referrals.

If those channels produce suitable applicants, the business can complete the hiring process internally and avoid the agency fee.

If they don't work, an agency is still available.

You haven't lost that option.

Don't Wait Forever Before Escalating

There is also a point where continuing a failed direct recruitment strategy becomes expensive.

If you've advertised the vacancy repeatedly, improved the job ad, reviewed your employment offer and still can't find anyone, it may be time to involve a recruiter.

The goal isn't to avoid recruitment fees at all costs.

It's to fill the position in the most commercially sensible way.

Ask Agencies Exactly What Their Fee Includes

Before signing an agreement, request the commercial terms in writing.

You should understand the percentage or fixed fee, what remuneration components are included in the calculation, payment terms, guarantee period and any replacement conditions.

If temporary or labour hire workers are involved, understand the hourly charge rate and any conversion fees.

Ambiguity is where expensive surprises happen.

Questions to Ask a Recruitment Agency

Before appointing a recruiter, ask how many candidates they already know in your industry and whether they've filled similar roles recently.

Ask whether the recruiter handling your position actually understands the trade.

Find out whether the arrangement is exclusive and whether the fee changes if you give them exclusivity.

Ask what happens if their candidate leaves after a month.

And most importantly, ask what the fee will be in actual dollars based on the remuneration you're planning to offer.

A percentage sounds abstract.

A $19,800 invoice doesn't.

Negotiate Based on Volume

Businesses making several hires may be able to negotiate better terms.

If you're building a new team of ten tradespeople, the recruiter has the opportunity to earn several placement fees from one relationship.

That can create room for volume pricing.

Similarly, an ongoing preferred-supplier relationship can sometimes produce better commercial terms than approaching an agency for a single one-off vacancy.

Negotiate Exclusivity Carefully

Agencies may offer a lower percentage in exchange for an exclusive recruitment period.

This can make sense if you trust the recruiter and believe they can deliver.

The agency has more incentive to invest deeply in the search because another recruiter cannot take the placement fee at the last moment.

However, exclusivity with a weak recruiter can delay the hiring process.

Don't choose purely based on the discount.

Understand Candidate Ownership Clauses

Recruitment agreements often include provisions determining when an agency is considered to have introduced a candidate.

This can become important if the candidate applies directly to your business later.

Candidate ownership periods vary.

Employers should understand these clauses so they don't accidentally become liable for a placement fee months after receiving an introduction.

Watch for Duplicate Candidate Introductions

This becomes especially important when several recruiters are working on the same role.

Two agencies may submit the same person.

Your own job advertisement may also attract someone who has previously been introduced by a recruiter.

Keep accurate records of candidate sources and introduction dates.

Otherwise, fee disputes can become messy.

Understand Temp-to-Perm Conditions

If you're using labour hire with the intention of potentially hiring someone permanently, check the conversion rules from day one.

Some agencies charge a fee if the worker moves directly onto your payroll within a certain period.

That fee may decrease as the placement continues.

Knowing the conditions upfront allows you to compare the real cost of labour hire with hiring directly.

Don't Forget Recruitment Advertising Costs

Some agency fees include job advertising.

Others may charge additional expenses for specialised advertising, assessments, travel or background checks.

Find out whether additional costs require your approval.

A quoted placement percentage isn't useful if significant extra expenses can simply be added later.

Job Boards Can Be a Much Cheaper Alternative

For employers willing to manage recruitment themselves, job boards can offer dramatically lower upfront costs.

Instead of paying 15% to 20% of a worker's annual remuneration, you might pay a relatively small flat fee to advertise the vacancy.

You then receive applications directly and handle the recruitment process internally.

For many ordinary trade positions, this can produce excellent results.

Specialist Trade Job Boards Can Reduce the Gap

General job boards provide large audiences, while recruitment agencies provide active candidate sourcing.

Specialist trade job boards sit somewhere in between from an employer's perspective.

They allow you to retain control of recruitment while targeting people specifically interested in trades and blue-collar work.

That can make them a useful option before committing to a large agency fee.

Where Tradie Jobs Fits In

Tradie Jobs focuses on Australian trade and blue-collar vacancies, including electrical, plumbing, automotive, carpentry, HVAC and refrigeration, fitting, welding, boilermaking, landscaping, labouring, scaffolding, traffic control, FIFO and mining roles.

For employers who are comfortable screening and interviewing candidates themselves, advertising directly can provide a much lower-cost alternative to handing every vacancy to a recruiter.

Agencies still have an important place, particularly for difficult and highly specialised positions.

But for many vacancies, targeted direct advertising is worth trying first.

Final Thoughts

Recruitment agencies in Australia commonly charge a percentage of the successful candidate's first-year remuneration for permanent placements.

For many ordinary placements, fees in the area of 15% to 25% are common, while specialist, senior and difficult searches can move higher.

For trade and blue-collar recruitment, fees around 15% to 20% are commonly seen for permanent positions, although every agency sets its own terms.

That means a relatively ordinary $100,000 employee could generate a recruitment fee of roughly $15,000 to $20,000.

Labour hire works differently, with the agency charging an hourly client rate that includes the worker's pay, employment on-costs and an agency margin.

Those numbers aren't automatically unreasonable. Recruiters can provide sourcing expertise, save employers significant time and reach workers who aren't actively applying for jobs.

But the cost is substantial enough that employers should understand exactly what they're buying.

For straightforward positions, direct job advertising may be significantly cheaper.

For specialised, urgent and hard-to-fill vacancies, paying a good recruiter can be money well spent.

The key is to compare the agency fee with the difficulty of the hire, the cost of leaving the position vacant and the likelihood that you could successfully recruit the person yourself.

Frequently Asked Questions

How much do recruitment agencies charge in Australia?

For permanent recruitment, many Australian agencies charge roughly 15% to 25% of the successful candidate's first-year remuneration, although fees vary significantly.

How much do recruitment agencies charge for tradies?

Permanent trade recruitment is commonly priced around 15% to 20% in many cases, while specialised, difficult and senior roles can attract higher fees.

What is a normal recruitment agency percentage?

There is no universal percentage, but around 15% to 25% is a common broad range for permanent recruitment.

Is a 20% recruitment fee normal?

Yes. A 20% placement fee sits within common Australian recruitment market ranges, particularly for professional, technical and harder-to-fill positions.

How much is a 20% recruitment fee on $100,000?

Approximately $20,000, based on a $100,000 remuneration figure.

How much is a 15% recruitment fee on $80,000?

Approximately $12,000.

How much is an 18% recruitment fee on $100,000?

Approximately $18,000.

Do recruitment agencies charge employees?

Normal employer recruitment agencies are generally paid by the employer hiring the candidate rather than charging the successful employee a placement fee.

Is the agency fee based on salary or total package?

It depends on the agency's terms. Some calculate fees on base salary while others include superannuation and potentially other guaranteed remuneration.

Does super count towards a recruitment agency fee?

It can. Employers should check the agency's definition of remuneration before signing an agreement.

Do car allowances count towards recruitment fees?

Potentially. Some agencies include guaranteed allowances in the remuneration figure used to calculate their percentage.

What is contingency recruitment?

Contingency recruitment generally means the agency receives its placement fee only if its candidate is successfully hired.

What is retained recruitment?

Retained recruitment involves paying part of the recruitment fee upfront to secure a dedicated search, often for senior or specialised positions.

What is fixed-fee recruitment?

Fixed-fee recruitment means the employer pays an agreed dollar amount rather than a percentage of the candidate's remuneration.

Are recruitment fees negotiable?

Often, yes. Hiring volume, exclusivity, role difficulty and the client relationship can all affect commercial terms.

How much do labour hire agencies charge?

Labour hire companies generally charge an hourly client rate covering the worker's wages, employment on-costs, administration and agency margin. The exact difference between worker pay and client charge rate varies substantially.

Is the labour hire markup all agency profit?

No. Part of the difference covers superannuation, workers compensation, payroll-related costs and other employment expenses.

What is a temp-to-perm fee?

A temp-to-perm or conversion fee may apply when an employer directly hires someone who was originally supplied by a labour hire agency.

Do recruiters provide replacement guarantees?

Many permanent recruitment agencies do, although guarantee periods and conditions vary considerably.

Do you get a refund if a recruited employee leaves?

Not necessarily. Many guarantees provide a replacement search rather than a cash refund.

How long are recruitment guarantees?

They vary from agency to agency and can range from a few weeks to several months.

When do recruitment agency fees become payable?

For contingency recruitment, payment is generally triggered after a successful placement according to the agency's terms. Retained recruitment may require payment before the hire is completed.

Is using a recruitment agency worth it?

It can be when the vacancy is specialised, urgent, confidential or difficult to fill, particularly if leaving the role empty is costing the business significant money.

Are job boards cheaper than recruitment agencies?

Generally, yes. Direct job advertising is usually significantly cheaper because the employer handles sourcing, screening and interviews internally.

Should I try a job board before using an agency?

For many ordinary trade vacancies, direct job advertising is a sensible first step. Agencies can then be used if the position proves difficult to fill.

Why do recruitment agencies charge so much?

Recruiters provide candidate sourcing, screening, market knowledge, administration and access to candidate networks, and contingency agencies may complete significant work without being paid if they don't make the placement.

What's the cheapest way to hire a tradie?

Direct job advertising, employee referrals and your own industry network can be substantially cheaper than agency recruitment when they produce suitable candidates.