Free Tool

Direct-Hire Placement Fee Calculator

Estimate your recruiting fee from first-year salary, and compare the 15%, 20%, and 25% tiers side by side.

Direct-Hire Placement Fee

First-Year Salary ($)

Placement Fee (%)

Placements

Placement Fee

$17,000

Fee at common tiers (per placement)

Direct-hire fees typically run 15–25% of first-year salary. Estimate only, actual terms depend on your client agreement and guarantee period.

How Direct-Hire Placement Fees Work

A permanent-placement fee is a one-time charge for finding and placing a full-time hire, priced as a percentage of the role's first-year salary. Higher percentages usually reflect harder searches or a longer guarantee.

Placement Fee = First-Year Salary × Fee %

FreshStaff runs direct hire & executive search alongside your temp desk, with placement, fee, and guarantee tracking in one CRM, and $0 recruiter seats.

Read the guide

Direct-Hire Placement Fees

What agencies charge (15–25%), guarantees, and how to set yours.

Read the article →

Frequently Asked Questions

What percentage do staffing agencies charge for a direct hire?

Direct-hire (permanent placement) fees are usually 15–25% of the candidate's first-year base salary, with 20% a common midpoint. Executive and hard-to-fill roles trend toward the higher end.

How is a placement fee calculated?

Multiply the first-year base salary by your fee percentage. An $85,000 salary at a 20% fee is a $17,000 placement fee. Bonuses and other compensation are usually excluded unless your agreement states otherwise.

What is a placement guarantee?

Most direct-hire agreements include a guarantee period (often 30–90 days). If the hire leaves within it, the agency provides a replacement or a prorated refund. It doesn't change the fee math, but it's worth confirming in the contract.

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