How much do recruiters charge? Recruiter fees explained

Most recruiters charge the employer a percentage of the new hire's first-year pay, and the employer is the one who pays. Indeed's headhunter fee guide, updated 15 June 2026, puts the average recruiter fee at 20% to 25%, within a range of 15% to "40% or more". Retained executive search firms charge more: about one-third, in Korn Ferry's case.

Korn Ferry's annual report for the year to 30 April 2026 says its search fees are "generally one-third of the estimated first-year cash compensation of the placed candidate".

How much do recruiters charge, by fee model

How we compared

We read every source on 14 October 2026. They are public pages: four Indeed guides, two SHRM articles, and the annual reports (Form 10-K) of Korn Ferry and Robert Half. Each range is written as that source states it, with the date the page shows. Where two sources give different figures for the same model, both rows are kept. The 2016 SHRM article is old, so its date stays next to its figures. The 2022 SHRM article is an interview with Kathleen Duffy, who runs a recruitment research firm, so its figures are her account. The Hong Kong and Singapore notes come from the Labour Department and the Ministry of Manpower.

The table ranks no model and no agency. It does not say which is cheaper for a given hire. The sources are mostly US-based, and none is a Hong Kong or Singapore market survey, so the ranges are reference points and may not match local prices.

What drives a recruiter fee

Seniority and the firm move the number. Indeed says the range depends "on the firm the headhunter works with and the type of job position being filled". The SHRM article from 2016 says retained searches for leaders "can cost more money".

Exclusivity changes the model. Under contingency, SHRM notes that "a client may hire several contingent recruiters" for the same job. Executive searches "usually are exclusive, meaning only one firm is at work", and Indeed's employer guide says retained firms "work on an exclusive basis".

The salary definition matters too, and the sources disagree on it:

• Indeed counts the first-year salary "including any sign-on bonuses", but not relocation expenses, sales commissions or bonuses.
• SHRM (2016) counts "salary, bonus and signing bonus".
• Korn Ferry bases its estimate on first-year cash compensation, then bills an "uptick" when the client pays more than estimated.

Indeed's own example is a $100,000 salary with a 20% headhunter fee, which adds $20,000. Ask whether "salary" in the contract means base pay or total cash.

How and when the fee is paid

A contingency recruiter is paid only if its candidate is hired. Indeed says the fee is "paid by the hiring company on the start date of the successful candidate".

Retained search is paid in stages. Indeed describes three payments: a retainer when the search begins, a second on an agreed milestone, and the last when the candidate is hired. The SHRM interview from 2022 says employers in a retained search "are committed to paying two-thirds of the fee with or without a hire".

Replacement and refund clauses

Indeed describes two kinds of clause for a hire who leaves early. Its employer guide says that if a hire leaves "before an agreed upon date", retained firms "offer a guarantee to replace that candidate with someone who has similar or more advanced skill sets". Its headhunter fee guide adds that an employer may require the candidate to work "for a minimum of three to six months" before the commission is paid.

None of the sources sets one standard period. The contract does, so read its replacement or refund clause before you sign it.

Who pays recruitment agency fees

For a permanent hire, the employer pays. Robert Half's annual report for 2025 says its placement fees are "paid only by the employer" and that "No fee for placement services is charged to employment candidates." Indeed's staffing agency guide says "job candidates typically do not pay any fees to use staffing agencies."

In Hong Kong and Singapore, a licensed recruiting agency may charge a job seeker, within a legal cap. Both caps limit what a job seeker pays; neither regulator's page sets a limit on what an employer pays.

Hong Kong

The Labour Department's Employment Agencies Portal (last reviewed 17 September 2026) says agencies "are not allowed to collect from job seekers any fees or charges other than the prescribed commission". That commission is capped at "10% of your first-month's wages after successful placement", and the Labour Department says the cap applies to "all job-seekers". Overcharging commission is an offence with a maximum penalty of HK$350,000 and imprisonment for 3 years. For start dates, see notice periods in Hong Kong.

Singapore

The Ministry of Manpower's FAQ (last updated 3 July 2024) says agencies "are allowed to collect no more than 1 month of a worker's fixed-monthly salary for each year of service, capped at 2 months' salary". A second MOM FAQ (last updated 14 March 2024) says a foreign worker whose employment ends within 6 months "is entitled to a refund of at least 50% of the agency fees paid". If you are hiring a foreign professional, the Employment Pass salary floor is a separate rule.

Where ROUND.1 fits

ROUND.1 is a hiring marketplace for Hong Kong and Singapore, built by h.work. Candidates pay nothing. Its pricing for employers is on /ai-info. Each candidate takes one AI first-round interview, described in what is an AI interview, and a person at the company decides whom to hire. What happens next is covered in what happens after an interview.

This is general information, not legal advice; check the official source for your case.