Recruitment agencies connect talented candidates with the businesses that need them. They save time, reduce hiring risks, and provide access to opportunities and talent you may not find elsewhere.
In this guide, you’ll learn:
FAQs about using recruitment agencies
How recruitment agencies work
Who pays for recruitment services
The main types of recruitment agencies
Why candidates and clients are equally important
Why Recruitment Agencies Matter to Both Clients and Candidates
Even though businesses pay the recruitment fees, agencies rely on both employers and job seekers. A good agency builds strong, long-term relationships on both sides by:
- Prioritising long-term satisfaction, not just quick hires
- Delivering excellent customer service throughout the process
- Sending only qualified, relevant candidates to employers
- Keeping both parties informed using recruitment technology
This balanced approach ensures employers find the right fit and candidates feel supported.
Who Pays Recruitment Agencies?
In the UK, it is always the employer who pays the recruitment agency. Charging candidates for job placement is illegal.
How fees are calculated
Recruitment fees are typically a percentage of the candidate’s starting salary. For example:
- Salary offered: £45,000
- Recruitment fee (15%): £6,750
- Total paid by employer: £6,750
The employer only pays once a successful placement has been made.
How Recruitment Agencies Fit into the Hiring Process
Recruitment agencies act as the link between job seekers and businesses. Their role often includes:
- Advertising vacancies and sourcing candidates
- Screening CVs and conducting initial interviews
- Shortlisting qualified applicants
- Coordinating interviews between candidate and client
- Negotiating salary and benefits
- Supporting onboarding where needed
This process helps businesses hire efficiently while giving candidates access to more opportunities.
Types of Recruitment Services
| Type of Recruitment | Description | Payment Model | Candidate Employed By |
|---|---|---|---|
| Contingency | Standard permanent recruitment | Paid only on successful placement | The hiring company |
| Retained Search | For niche or hard-to-fill roles, includes exclusivity | Upfront retainer and success fee | The hiring company |
| Temporary (Temp) | Short-term roles (days to months) | Monthly fee plus hourly margin | The recruitment agency |
| Contract Recruitment | Project-based, self-employed contractors | Percentage of day rate | The contractor |
Are All Recruitment Agencies the Same?
No. Agencies vary based on:
- Industry expertise (e.g. tech, finance, healthcare)
- Recruitment type (permanent, temp, contract)
- Client engagement model (contingency or retained)
Some specialise in headhunting, while others focus on volume hiring or temporary staffing. It’s important to choose an agency that aligns with your business needs or your career goals.
Final Thoughts
Recruitment involves much more than just matching CVs to job descriptions. It requires strategy, communication, and relationship-building. Whether you’re hiring or looking for your next opportunity, understanding how recruitment agencies operate can help you navigate the process more effectively.
If you found this guide helpful, share it with someone who’s currently hiring or job hunting.
FAQs
Nick Derham
Director • C-Suite Executive Recruitment Specialist
Find the right fit for you
We provide friendly, forward-thinking, 360° recruitment solutions. With two decades of experience in the tech sector, we focus on happy hiring.
Get the latest news, talent insights and trends
-
How to Deal with Burnout as a Manager
As Directors of a recruitment company for over 20 years, Nick Derham and I, David Berwick, have faced many challenges. I’m Dave Berwick, Co-founder, Director and Senior IT Recruitment Consultant… -
7 Most Effective Ways To Showcase Your Talent As A Beginner Marketer
Every business needs a marketing strategy to help it find clients and become successful. Consequently, many companies – big and small – are looking to hire professional marketers to develop… -
Is Manchester a Good Place to Live?
When candidates ask us, “Is Manchester a good place to live?” the answer isn’t as straightforward as they might want. Like any major city, Manchester has its pros and cons,…
