How much do recruitment agencies charge in Australia?
Recruitment agency fees in Australia vary depending on the role, industry, location, hiring model and level of service required.
Recruitment agency fees at a glance
Permanent recruitment: Fees are commonly calculated as a percentage of the successful candidate’s annual remuneration package.
Temporary and contract recruitment: Pricing is usually based on an hourly or daily rate that includes employment on-costs and an agency margin.
Project or solution-based recruitment: Pricing is tailored according to factors such as project size, team size, duration, delivery risk and integration requirements.
These fees cover recruitment services such as sourcing, screening and placing candidates into roles. Understanding the available pricing structures can help businesses choose an appropriate hiring model and budget more effectively.
At Manpower, we support employers across business professional, customer service, engineering, trades & technical, ESG, compliance & safety and industrial sectors. Because every hiring project is different, our recruitment consultants work closely with employers to recommend the most suitable recruitment strategy and provide pricing tailored to their hiring requirements.
What recruitment agency pricing models are available in Australia?
1. Percentage of Salary
The most common recruitment pricing model for permanent roles in Australia is based on a percentage of the candidate’s salary. This model sets the recruitment firm’s fee based on the successful candidate’s annual remuneration package. This usually includes base salary plus superannuation and, depending on the agency, expected bonuses or allowances.
Typical fee ranges are:
15% to 20% for entry‑level or junior roles
18% to 25% for mid‑level professional roles
20% to 30%+ for senior, executive or hard‑to‑fill positions
For example, if an agency charges 18% and a candidate’s package is $100,000, the fee would be $18,000. Fees are normally only payable when a candidate is placed, providing a performance‑based model that aligns risk with the agency.
2. Temporary and Contract Recruitment
Temporary and contract recruitment pricing is typically based on an hourly or daily rate, including agency margin and employment on-costs. Instead of a one‑off placement fee, agencies apply a margin on top of the worker’s hourly or daily rate.
A simple example:
Candidate earns $50/hour
On‑costs (super, workers comp, payroll tax, etc.) = ~$10/hour
Agency margin = $10/hour
The client would be charged $70/hour, covering all employment obligations while the agency manages payroll, onboarding and compliance.
In this scenario, the recruitment firm owns the employment agreement with the employee/contractor rather than the client.
3. Project or Solution-Based Pricing
Typically used to manage larger recruitment programs - such as large-scale warehouse and manufacturing projects or high volume recruitment campaigns – project or solution-based recruitment programs require tailored pricing discussions.
These may include:
Statements of Work (SOW)
Recruitment Process Outsourcing (RPO)
Managed Service Provider (MSP)
Pricing discussions typically consider project and team size, duration, delivery risk, and integration with existing internal capability and technology platforms. As a result, program pricing is rarely standardised and is best developed through consultation.
Engaging a Recruitment Firm
When it comes to engaging a recruitment firm, there are traditionally two main service structures available to an employer:
1. Contingent Recruitment
This is the most common model in Australia.
You only pay if the agency successfully fills your role.
The agency competes with other agencies or your internal team.
It’s low‑risk for employers but can lead to high competition and variable candidate quality.
2. Retained/Exclusive Recruitment
Used for senior, executive or highly specialised hires.
You pay in instalments: usually at the start, mid‑search, and on placement.
The agency provides deeper research, longlisting, psychometric testing and more thorough vetting.
Guarantees and Replacement Periods
For most placements, agencies will offer a replacement guarantee, typically 3 to 6 months—if the candidate leaves or is terminated, the agency will re-recruit the role without additional charge. This helps protect your investment and demonstrates confidence in the agency’s selection process. At times, Executive roles can include extended guarantee periods.
What factors affect recruitment agency fees?
Recruitment fees vary depending on:
Role seniority and complexity
Talent scarcity in the market
Geographic location (for example, hiring costs in Sydney or Melbourne may differ to recruitment fees in regional areas)
Speed required
Whether the relationship is retained/exclusive
Which recruitment pricing model is right for your business?
The most suitable recruitment pricing model depends on your hiring objectives, budget and the type of role you need to fill.
Choose permanent recruitment if you are recruiting for individual permanent positions and prefer to pay only when a successful placement is made.
Choose retained recruitment if you are hiring for executive, leadership or highly specialised roles where a dedicated search is required.
Choose temporary or contract recruitment if you need workforce flexibility to respond to changing business demands or short-term staffing requirements.
Choose project or solution-based recruitment if you are managing multiple hires or a large recruitment project requiring a tailored approach.
If you are unsure which option best suits your business, a recruitment consultant can assess your hiring requirements and recommend the most appropriate recruitment strategy and pricing model.
Contact Us
For a confidential conversation about the cost of engaging a recruitment agency for your next hiring project, please contact Manpower by completing the form found here.
Once received, an expert Recruitment Consultant will be in touch to discuss your specific needs and tailor a quote that provides clarity around project process and cost.
Frequently Asked Questions
1. How much do recruitment agencies charge in Australia?
Because pricing depends on role complexity, market conditions and engagement scope. Fixed price lists rarely reflect real hiring needs for specialist industrial and professional roles.
2. Is it cheaper to use a recruitment agency or hire internally?
Not always. Internal hiring also involves time, tools, advertising, opportunity cost and delivery risk if timelines slip. External partners can accelerate delivery, widen market access and reduce mis-hire risk.
3. Can pricing be agreed before recruitment starts?
Yes. Fees and commercial terms are typically discussed and agreed upfront once scope and assumptions are clear.
4. Does contract recruitment cost more than permanent recruitment?
They are structured differently. Contract pricing reflects ongoing employment obligations, compliance and workforce management, rather than a one-off success fee.
5. When does it make sense to speak to a recruitment partner about pricing?
As soon as you have defined outcomes, timelines and an initial role profile (or a programme outline). Early alignment avoids delays, adjusts for market scarcity and ensures the right model is chosen.
6. What information helps recruiters provide accurate pricing upfront?
Role purpose and outcomes
Specific qualifications required, seniority level and must have soft skills
Timeline, location and engagement type (perm/contract/temp, contingent/exclusive, etc.)
Security/clearance or regulatory constraints
Planned volumes or phased hiring
Known market challenges (e.g., niche skills, competitor demand)
7. Do recruitment costs vary by location in Australia?
Yes, recruitment costs can vary depending on location. Hiring in major cities such as Sydney, Melbourne, or Brisbane may have different pricing considerations compare to roles in regional areas, which include talent demand, talent availability and remote working.
8. How can I get an accurate recruitment quote?
The most accurate way to determine recruitment costs is to discuss your hiring requirements with a recruitment consultant. A tailored quote can then be provided based on the role, hiring timeline, location and recruitment solution required.