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Fixed price recruitment: what you need to know
How flat-fee recruitment works, what's typically included, and when it makes more sense than a percentage-based model.
- 4 min read
Most organisations are familiar with the traditional agency model — you pay a percentage of the candidate's salary when you make a successful hire. Fixed price recruitment works differently: you agree a flat fee upfront, before the search begins, and that's all you pay regardless of the salary the candidate ends up on.
It's a straightforward model, but there are things worth understanding before you decide whether it's the right choice for your next hire.
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How fixed price recruitment works
The process is the same as classic recruitment — full briefing, active sourcing, candidate screening, shortlisting, interview coordination, and offer management. The only difference is in how you pay.
Instead of agreeing a percentage of the candidate's first-year salary, you agree a flat fee at the start of the engagement. That fee is fixed regardless of what the candidate earns. If you expected to pay £45,000 and the successful candidate negotiates £52,000, your recruitment fee doesn't change.
The flat fee is typically agreed based on the level and complexity of the role, not the specific salary. A junior marketing executive search will carry a lower flat fee than a head of engineering search, for example — but both are agreed and fixed before any work begins.
What's typically included
A properly run fixed price search should include everything you'd expect from a full-service agency — not a cut-down version of the process. At Master Recruiter, fixed price recruitment includes:
- Full role briefing and market advice before the search begins
- Active sourcing — job boards, direct headhunting, and our database
- Candidate screening and interviews before shortlisting
- Shortlist of 3–5 candidates with detailed profiles
- Interview coordination and feedback management
- Offer management through to acceptance
- Replacement guarantee if the hire doesn't work out
Some flat-fee providers in the market offer a stripped-down service — job board posting only, with no headhunting, no screening, and no support beyond sharing applications. That's not the same thing. Make sure you understand what's included before you commit.
Fixed price vs. percentage fee — the key differences
| Factor | Percentage fee | Fixed price |
|---|---|---|
| Fee calculation | % of candidate's first-year salary (typically 15–25%) | Flat fee agreed upfront, regardless of salary |
| Budget certainty | Varies — higher if candidate negotiates a higher salary | Fixed — you know the cost before you start |
| Higher salary offers | Increases your recruitment fee | No impact on the fee |
| Service level | Full service | Full service (with the right provider) |
| Best for | Senior or specialist roles where outcome is uncertain | Roles where budget certainty matters |
When fixed price recruitment makes sense
Fixed price works particularly well in a few specific situations:
When you're working to a fixed budget. If you know exactly what you can spend on recruitment and need certainty, a flat fee removes the risk of an unexpectedly high placement fee if the candidate's salary comes in above expectations.
When hiring at mid-level. Percentage fees become expensive quickly at senior salaries, which is why executive search typically uses a retainer model. At mid-levels, a flat fee often represents better value than a percentage, particularly if the role is relatively clearly defined.
When you're hiring multiple similar roles. If you need three people in broadly similar positions, a flat fee per placement gives you a predictable total cost that you can budget against with confidence.
The number to remember. A traditional agency fee of 18% on a £40,000 salary is £7,200. On a £50,000 salary it's £9,000. With fixed price recruitment, both of those hires carry the same agreed flat fee — agreed before you start, regardless of where the salary lands.
What to watch out for
Not all fixed-fee recruitment services are equal. The term "flat fee" is sometimes used by providers who offer job posting only — they put your role on a job board and send you the applications, with no screening, no headhunting, and no support. That can work for some very straightforward roles, but it's a very different service to a fully managed recruitment search.
Before committing to a fixed price provider, clarify: do they headhunt passive candidates, or only advertise? Do they screen and interview candidates before presenting them? Do they coordinate interviews and manage the offer? Is there a replacement guarantee? These questions quickly separate a full-service fixed price provider from a job-board posting service with a different name.
Questions about whether fixed price is right for your next hire? Book a free call — we'll give you an honest answer based on your situation.
Ready to talk about your next hire?
Book a free call and we'll advise on the right model for your situation — fixed price, classic, or embedded.
