placement
fee calculator

Calculate recruiting placement fees by salary and percentage.

Fee benchmarks

Guarantee adjustment

Multiple fee types

tl;dr

Placement Fee Calculator Calculate placement fees by salary, fee percentage, and placement type. Compare contingency vs retained fees.

Estimate placement revenue based on salary, fee structure, and guarantee period. Compare different fee models.

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Frequently asked questions

What is a standard placement fee?

Contingency fees typically range from 18-25% of first-year salary. Retained search fees are 25-35% with upfront payments.

How does the tool differentiate between contingency and retained placements?

Contingency placements only result in a fee if the candidate is successfully placed, whereas retained placements have upfront fees spread over stages of the hiring process.

Can this tool handle multiple positions at once?

Currently, the tool is designed to calculate fees for one position at a time. For bulk calculations, data needs to be inputted individually.

What if my fee percentage isn't standard?

You can enter any percentage value that fits your specific agreement with the client.

Is the tool applicable to international placements?

Yes, but you need to adjust the currency and any applicable regional fees manually, as the tool focuses on percentage calculations.

Does the tool account for guarantee periods?

The tool provides the basic fee calculation, but it does not factor in guarantee periods, which should be managed separately.

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Example: Placement Fee Calculator in action

A recruitment agency wants to calculate the placement fee for a candidate taking a new job.

Sample input

Salary: $80,000
Fee Percentage: 15%
Placement Type: Contingency

Result

The placement fee for a contingency placement with a salary of $80,000 at a 15% fee percentage is $12,000.

About Placement Fee Calculator

The Placement Fee Calculator is a crucial tool for recruitment agencies and HR professionals who need to evaluate and compare the financial outcomes of different recruitment models. By allowing users to input specific salary figures and fee percentages, the tool provides a precise calculation of potential earnings from candidate placements. This enables not just accurate forecasting but also strategic decision-making regarding which recruitment model—contingency or retained—best suits the agency's business objectives and client needs. The ability to clearly outline potential revenues helps in budget planning and improving client transparency, making it an indispensable component of modern recruitment operations.

How it works

Enter the salary of the position being filled.
Select the fee percentage you charge for placements.
Choose the type of placement: contingency or retained.
The tool calculates the total placement fee based on the provided data.

When to use it

Recruitment agencies calculating anticipated fees for a new client proposal.
Freelance recruiters needing quick fee estimates for different roles.
HR departments comparing the costs of using external recruiting services.
Financial planning for recruitment firms adjusting annual revenue projections.