Types of Placement Fee Structures
The three main fee structures in Australian recruitment are contingency (pay-on-placement, 12-25% of salary), retained (upfront commitment for exclusive search), and temporary margins (15-35% markup on contractor pay rates). Most Australian agencies under 50 staff operate primarily on contingency terms.
- 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
The national average for permanent contingency placements in Australia sits around 15-18%. Specialist verticals (technology, healthcare, mining) command higher fees due to candidate scarcity. Agencies with strong track records maintain premium rates, while generalists face downward pressure from in-house hiring teams.
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$49/month.