Employers pay recruiters a percentage of first-year pay. Published sources put retained executive search at about one-third, paid in instalments, and contingency recruiting at 20% to 30%, with the exact base and range varying by source. Candidates normally pay nothing, though law differs by place. Candidate-side services are priced separately: the handbook's survey found published Reverse Recruiting prices of $999 to $4,500 a month.
Three different prices
"What does a recruiter charge?" has three answers, depending on who is paying.
- The employer pays an agency or search firm. This is the headhunter fee, a percentage of the hire's first-year pay.
- The candidate pays an agency. Normally nothing, although some places allow a licensed agency to charge an applicant under conditions. See is it worth paying a headhunter.
- The candidate pays a candidate-side service. A separate product with its own price, covered at the end of this page.
Mixing these up is how people end up comparing a one-third placement fee with a monthly subscription and concluding something about both.
What employers pay: the published figures
There are two models, and the sources describe them consistently. A retained firm is engaged exclusively and paid for the search, in instalments, whether or not the role is filled. A contingency firm is paid only if a candidate it introduces is hired, and the engagement is usually not exclusive. The table gives each source's own figure and date.
| Source and date | Model | Figure given | What it is applied to |
|---|---|---|---|
| Heidrick & Struggles annual report (10-K), year ended December 2024 | Retained | About one-third | Estimated first-year compensation for the position; the firm is often authorised to bill the client for one-third of any excess if the actual pay is higher |
| Korn Ferry annual report (10-K), year ended April 2021 | Retained | About one-third, charged whether or not the position is filled | First-year annual cash compensation |
| SHRM, 2016, quoting one consultant | Retained | About 33% | Annual salary, bonus and signing bonus |
| SHRM, 2016, quoting one consultant | Contingency | 20% to 25% | First-year cash compensation: salary, bonus and signing bonus |
| JRG Partners, 2026 | Retained | About one-third (33%) | Projected first-year total compensation package |
| JRG Partners, 2026 | Contingency | 20% to 30% | First-year base salary only |
| Cowen Partners, undated | Retained | 30% to 35% | Estimated first-year salary |
| Cowen Partners, undated | Contingency | About 20% to 30% | First-year salary |
Where the sources agree.
On retained search the agreement is close. Two annual reports filed by publicly listed search firms, a 2016 SHRM article quoting one consultant and two search firms' own pages all describe a fee of about one-third. The two annual reports are the strongest evidence, because they are filed with the US securities regulator and describe how the firms actually charge, but each reports its own firm's practice.
Where they differ.
- The range for contingency. SHRM gives 20% to 25%. JRG Partners and Cowen Partners give 20% to 30%. The bottom is the same; the top differs by five points. The SHRM figures are from 2016 and come from a single quoted consultant, so they may not reflect current pricing.
- The base. SHRM applies the retained fee to salary, bonus and signing bonus, and JRG Partners to the total compensation package. Cowen Partners says estimated first-year salary. On contingency, JRG Partners says base salary only, while SHRM says cash compensation including bonus. Heidrick & Struggles says estimated first-year compensation without spelling out the components, and Korn Ferry says first-year annual cash compensation. Always read the contract's definition of compensation.
- The extra. Heidrick & Struggles says search firms are often authorised to bill the client for one-third of any pay above the estimate. None of the other sources mentions it, so check whether a contract includes it.
For contingency, only SHRM (2016, one quoted consultant), JRG Partners (2026) and one undated firm page give a range I could open and read. All are publishers with an interest: two are search firms, and SHRM's article is general advice written for employers. Read the ranges as a market guide, not a rate card.
A worked example.
For illustration only, take a role paying $300,000 in first-year cash compensation. At a retained fee of one-third, the employer owes about $100,000, paid in instalments. At a contingency fee of 20% on the same figure, the employer owes $60,000, and only if the hire is made. Those are invented round inputs, not a quote.
How retained fees are paid
"One-third" can mean two things, and both are true of retained search. The fee is about one-third of first-year pay, and it is commonly paid in three instalments. JRG Partners describes the split as one-third on engagement, one-third at the 30-to-60-day mark and one-third on completion. Cowen Partners describes one-third to begin, one-third 60 days in and one-third on hiring. The timing differs by firm. Korn Ferry's filing says the retained fee is charged whether or not the position is filled.
What the candidate pays
For an agency or search firm engaged by an employer, normally nothing. The Federal Trade Commission, 2023 says honest placement firms do not usually charge job candidates, because the hiring company pays them. In Great Britain, the Employment Agencies Act 1973 (which extends to England, Wales and Scotland) prohibits an agency from requesting or receiving a fee from a person for finding that person employment, subject to exceptions, and government guidance says the Act does not regulate what agencies charge hirers.
The law differs by place. New York General Business Law section 185 as published by the state Senate and read on 5 October 2026, allows a licensed agency to charge an applicant under a written contract, after the applicant has been referred and has been employed as a result, and bars a deposit or advance fee. A firm that asks you for a fee before any placement is outside the norm in every source above. Where the rules are unclear, ask an employment lawyer in your jurisdiction.
What candidate-side services charge
Reverse Recruiting is a candidate-side service: a firm runs the search on your behalf, and you pay it. It is not an agency placing you for an employer's fee, and it is priced differently. The only figures this page uses are from the handbook's own 2026 survey of the market, which records providers' own claims and does not verify them.
- 22 providers were surveyed, and 18 are recruiting services.
- Of those 18, 6 publish a monthly price. The published monthly prices range from $999 to $4,500, and the median entry price is $1,500.
- 4 of the providers charge a percentage of salary.
- 12 advertise a guarantee; what guarantees promise explains how to read one.
The percentage-of-salary models in that survey are a minority, and the NRRA Standard says a fee that is a percentage of salary, or that depends on an offer, fails its test of aligned incentives. What Reverse Recruiting costs goes through the price, what it covers and what to ask. For other candidate-side products, see Reverse Recruiting vs career coaching and what outplacement is. To test whether any fee pays back, use the break-even calculator. The handbook is published by the National Reverse Recruiter Association (NRRA), whose members sell this service.
Frequently Asked Questions
What is a normal recruiter fee?
For retained executive search, annual reports from Heidrick & Struggles and Korn Ferry describe about one-third of first-year pay. For contingency recruiting, a 2016 SHRM article quoting one consultant gives 20% to 25% and JRG Partners 20% to 30%. The employer pays it. The sources differ on whether bonus counts in the base, so the contract definition decides the number.
What is a typical fee for a recruiter?
A retained search firm charges about one-third of the estimated first-year compensation, paid in instalments. A contingency recruiter charges 20% to 30%, paid only on a hire. These figures come from published sources dated between 2016 and 2026, and individual firms negotiate. The candidate normally pays none of it when the firm is engaged by an employer.
How much does a headhunter cost?
A headhunter normally costs the candidate nothing, because the employer pays. For the employer, a headhunter on retained search is paid about one-third of first-year pay, as the Heidrick & Struggles and Korn Ferry filings describe. If a headhunter asks you to pay a placement fee, treat it as a warning and check the rules where you live.
How much does a reverse recruiter charge?
In the handbook's 2026 survey, 6 of 18 recruiting services published a monthly price, ranging from $999 to $4,500, with a median entry price of $1,500. Four providers charge a percentage of salary. These are providers' own claims and are unverified, so confirm the scope, the term and the guarantee wording in writing.
Do I pay a recruiter fee when I take the job?
Not normally: in conventional recruiting the employer pays the fee, although some places allow a licensed agency to charge an applicant under conditions. Some candidate-side services charge a percentage of salary, and the NRRA Standard says a fee that is a percentage of salary, or that depends on an offer, fails its test. Read the engagement terms before you sign, and ask an employment lawyer if the arrangement looks like a placement fee charged to you.
Related: The 70/30 and 80/20 Rules in Hiring, Explained · What Not to Tell a Recruiter or Headhunter · Is It Worth Paying a Headhunter? Who Really Pays · Does Reverse Recruiting Work? What the Evidence Shows · What Is the Hardest Month to Get Hired? · Glossary
Editor. Former executive recruiter, Founding President of the National Reverse Recruiter Association, creator of the Reverse Recruitment Method™, Founder & CEO of iCareerSolutions. About the editor · Editorial policy