Recruitment Agency Fees: Contingency, Retained, Fixed Fee

+971568428813

About Us

FAQ

iGaming Talent Factory

iGaming Talent Factory

Blog

Home

Blog

Recruitment Agency Fees Explained: Contingency, Retained and Fixed Fee

Last updated: 10 November 2026

Key takeaways

Contingency: the agency is paid only when its candidate is hired, so the agency carries most of the risk.
Retained: the employer pays in stages, usually starting at the beginning of the search, for a dedicated and often exclusive search.
Fixed fee: a set price agreed in advance, usually for roles with a wide pool of candidates.
In the UK, section 6(1)(a) of the Employment Agencies Act 1973 restricts agencies from charging work-seekers for finding them work, so the employer pays.
Before signing, check replacement terms, exclusivity, payment triggers and how the contract treats candidates you already know.

Recruitment agency fees depend on the model you choose, and the model decides more than the price: it decides who carries the risk, how much effort the agency puts in and how much control you keep. The three common models are contingency, retained and fixed fee.

This guide is for founders, COOs and HR leads at fintech, crypto and iGaming companies who are about to brief an agency. It explains each model, which suits which kind of role, and what to check in the contract. We do not quote market percentages here, because published figures vary by source and market; ask each agency for its terms in writing and compare like with like.

How the three models work

Contingency. The agency introduces candidates and is paid only if you hire one of them. The fee is usually calculated as a share of the hired candidate's first-year salary, and it becomes payable on a trigger set out in the contract, such as an accepted offer or a start date. You can often brief several agencies at once, and you pay nothing if none of their candidates is hired.

Retained. You engage one agency for a dedicated search and pay in instalments, for example at the start, at shortlist and at the hire. The agency commits a named team and a timetable, maps the market and approaches candidates who are not actively looking. Retained searches are usually exclusive.

Fixed fee. The agency charges a set amount agreed in advance, not linked to salary. Payment may be due up front, on hire, or split. Fixed fee models are common for roles where many suitable candidates exist and the main work is advertising and screening.

Hybrid or engaged search. Some agencies offer a middle option: a smaller commitment fee at the start, with the rest paid on hire. It gives the agency a reason to prioritise your role without the full commitment of a retained search. Ask what the commitment fee buys, for example a named consultant, a market map or a shortlist date, and whether it is deducted from the final fee or refunded if the search is cancelled.

Recruitment agency fees compared: who carries the risk

	Contingency	Retained	Fixed fee
When you pay	When a candidate the agency introduced is hired	In stages, usually starting at the beginning	As agreed: up front, on hire or split
Who carries the risk	Mostly the agency	Shared, with the employer committing money early	Depends on when payment is due
Exclusivity	Often non-exclusive	Usually exclusive	Varies
Effort on hard roles	Can be limited if the role is hard to fill	Dedicated team and timetable	Usually focused on volume and screening
Best suited to	Roles with a wide talent pool	Senior, confidential or rare roles	Volume or repeat hiring of similar roles

Which model suits which role

Volume and wide-pool roles. Customer support, payment operations analysts or junior compliance analysts usually have enough active candidates for contingency or fixed fee to work.

Senior and regulated roles. An MLRO, Head of Compliance, Country Manager or C-level hire often has a small pool of suitable people, most of whom are not looking. The hire may also need regulator approval, so a weak shortlist costs time on the licence, not just on recruitment. These roles usually suit a retained or exclusive search. For the hiring side of one such role, see How to Hire an MLRO for a Crypto or Fintech Company, and for the choice between models in detail, see Retained vs Contingency Search for Senior Roles.

Confidential roles. If you are replacing someone who is still in post, or hiring before an announcement, an exclusive search with one agency keeps the circle small.

Choosing a fee model for a senior or regulated hire?

Send us the job description and we will tell you which search model fits the role and why.

Send us the job description

What to check in an agency contract

Whatever the model, the contract decides what you actually pay. Check these terms before you sign:

Replacement or rebate. What happens if the hire leaves or is dismissed during an early period: a free replacement search, a partial refund, or nothing. Check the conditions, such as paying on time or the reason for leaving.
Exclusivity. Whether the agency is the only one you may use for the role, and for how long. Exclusivity should come with commitments from the agency, such as a timetable and regular reporting.
Payment trigger. Whether the fee is due on an accepted offer, a signed contract or a start date, and what happens if the candidate withdraws before starting.
Candidates you already know. How the contract treats a candidate the agency introduces who has already applied to you or is already in your pipeline. Ask for a clause that requires the agency to name candidates before sending CVs, so you can flag people you already know.
Ownership period. How long after an introduction the agency can claim a fee if you hire that person, including for a different role.
Temporary-to-permanent. If the agency supplies contractors, whether a fee applies when you hire one permanently.
Fee basis. Whether the fee is calculated on base salary only or includes bonus and other pay.

Who pays the agency

In the UK, section 6(1)(a) of the Employment Agencies Act 1973 restricts agencies from charging work-seekers fees for finding them work. The Conduct of Employment Agencies and Employment Businesses Regulations 2003 set out narrow exceptions for certain occupations, such as some roles in entertainment and modelling. For permanent hires in fintech, crypto and iGaming, the employer pays the agency. If a recruiter asks your candidate for money, treat it as a serious warning sign.

What we recommend

Choose the model per role, not per agency: contingency or fixed fee for wide-pool roles, retained or exclusive for senior, regulated and confidential roles.
Get every agency's terms in writing and compare what each fee includes, not only the headline number.
Read the replacement, exclusivity, payment trigger and ownership clauses before you sign.
Ask agencies to name candidates before sending CVs, so you can flag people already in your pipeline.
For regulated roles, ask the agency how it screens for fit and proper criteria before you see a shortlist. See also How to Choose a Recruitment Agency for Fintech, Crypto and iGaming.

FAQ

What are the main types of recruitment agency fees?

The three common models are contingency, retained and fixed fee. With contingency, the agency is paid only when a candidate it introduced is hired. With retained search, the employer pays in instalments, usually with part paid at the start, for a dedicated search. With a fixed fee, the price is agreed in advance as a set amount rather than a share of salary.

Who carries the risk in contingency recruitment?

Mostly the agency. It is paid only if its candidate is hired, so it may compete with other agencies and with your own team for the same role. The employer carries less financial risk but has less control over how much effort the agency puts into a hard role.

When does retained search make sense?

Retained search suits senior, confidential or hard-to-fill roles, such as an MLRO, Head of Compliance or C-level hire, where the agency needs to map the market and approach passive candidates. The employer commits money up front in return for a dedicated, usually exclusive, search.

What should I check in a recruitment agency contract?

Check the replacement or rebate terms if a hire leaves early, whether the agency has exclusivity and for how long, exactly what triggers payment, and how the contract treats candidates you already knew. Also check how long the agency can claim a fee for a candidate it introduced, and whether fees apply to temporary-to-permanent moves.

Can a recruitment agency charge candidates a fee?

In the UK, section 6(1)(a) of the Employment Agencies Act 1973 restricts agencies from charging work-seekers fees for finding them work, with narrow exceptions for certain occupations set out in the Conduct of Employment Agencies and Employment Businesses Regulations 2003. In practice, the employer pays the agency for permanent recruitment.

Is a fixed fee recruitment cheaper than contingency?

Not necessarily. A fixed fee can be lower for roles with many suitable candidates, but it often comes with less service, such as fewer candidates or less screening. Compare what each model includes, not only the headline price.

The bottom line

Recruitment agency fees are a trade-off between risk, effort and control: contingency costs nothing if no hire is made, retained buys a dedicated search, and fixed fee buys a set price for simpler roles. Read the contract as closely as the fee. Hirexel recruits for fintech, crypto, blockchain and iGaming companies and will explain which search model fits each role before you commit.

Want to talk through terms for your next hire?

Book a call to discuss the role, the search model and the terms that fit it.

Book a call