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
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.
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.
One Platform for Temp and Direct Hire
Run placements, fees, and guarantees in one CRM, at $0 recruiter seats.