Types of Placement Fee Structures
Recruitment fee models include contingency, retained search and temporary staffing. Specify payment triggers, costs and deliverables in writing; fee amounts depend on the agreement.
- Contingency — no upfront cost, fee due on successful placement, typically 30-day payment terms
- Retained — one-third on engagement, one-third on shortlist, one-third on placement
- Temp margin — ongoing revenue covering wages plus super, WorkCover, payroll tax, and profit
- Contract — similar to temp for defined project periods, typically higher margin
- RPO — monthly retainer for managing all or part of a client's hiring function
Setting Fees for the Australian Market
Recruitment fees vary by agreed scope, role and client. No national average is established here; calculate your costs and document the fee basis in the agreement.
Tracking Fees in Your CRM
- Terms per client — fee percentage, payment terms, guarantee period, rebate conditions
- Placement value — salary multiplied by agreed fee, calculated automatically
- Revenue pipeline — total potential fee value weighted by probability
- Guarantee periods — automated alerts before expiry dates
Kolvera tracks placement fees, terms of business, and revenue pipeline within the CRM. Agencies record fee percentages per client and monitor pipeline alongside BD activity, from A$79/month.