- Direct hire: 25% of first-year compensation, paid on placement, with no upfront fee
- Executive and leadership search: 30% of first-year compensation
- Compensation means base salary plus any bonus agreed at offer; equity is not included
- Free 90-day replacement guarantee; reference checks included
How do recruiting agency fees work?
A contingency direct-hire recruiter charges nothing to start. You pay one fee when the person you hire begins work. The fee is a percentage of the hire's first-year pay, so it scales with the seniority of the role.
Agencies define that pay differently. Some calculate on base salary only, others on total compensation. At RecruitJet, compensation means base salary plus any bonus agreed at offer. Equity is not included. Ask any agency to confirm its definition in writing.
What does RecruitJet charge?
Two fees. Direct hire is 25% of first-year compensation, paid on placement, with no upfront fee. Executive and leadership search is 30% of first-year compensation, paid on placement.
Both include reference checks and a free 90-day replacement guarantee. Background checks, and criminal checks where the role requires them, are billed at cost.
When do you pay?
On placement. Direct hire has no upfront fee. Executive search takes $3,000 to start the search, credited against your final invoice and refunded in full if there is no placement.
How is a direct-hire fee different from a temp agency's charges?
A temporary staffing agency employs the worker and bills you an hourly rate with a markup for as long as the person stays. A direct-hire fee is paid once, and the person is on your payroll from the first day. RecruitJet only does direct hire and executive search, so you are never paying an ongoing markup.
What happens if the hire doesn't work out?
Every RecruitJet placement carries a free 90-day replacement guarantee. If your hire leaves or doesn't work out within 90 days of their start date, we replace them at no additional fee. It covers resignation and termination, allows one replacement per placement and does not apply to layoffs. Read any agency's guarantee closely: check the length, whether it is a replacement or a refund, and what conditions apply.
Is the fee worth it?
The Society for Human Resource Management (SHRM) puts the median time to fill a non-executive role at 39 calendar days. That is more than five weeks of sourcing, screening and interviewing, often done by an owner or manager with another full-time job. A recruiter is worth paying when that time costs you more than the fee.
With RecruitJet, you typically meet a shortlist of qualified, interested candidates within 10 business days of kickoff. Each shortlisted candidate has been interviewed and reference-checked, and lives within commuting distance of your office.
What should you ask any agency about fees?
- Is the fee based on base salary or total compensation?
- When is the invoice due: at offer, at acceptance or at start date?
- Is there any fee if the role is not filled?
- How long is the guarantee, and is it a replacement or a refund?
- Are there any upfront, advertising or administration charges?
Sources
How direct hire works
Local direct hire: interviewed, reference-checked candidates, and one fee when your hire starts.
