Staffing Glossary
Placement Fee
The one-time fee for a direct-hire placement, calculated as a percentage of the candidate's first-year salary.
Also called: placement agency fee, recruitment placement fee, direct hire fee
A common placement fee is 20% of first-year salary, though it ranges roughly 15–25% depending on role difficulty, exclusivity, and local market rates. It's paid once, at placement — unlike a bill rate, which is billed for every hour worked.
Related terms
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