Most Australian executive recruitment fees are a percentage of the first-year package, commonly around 25% to 33% for retained executive search and lower for contingent work. On a $250,000 package, that is roughly $62,500 to $82,500 before extras. The percentage is only one part of the cost. What it is charged on, when you pay it and what happens if the hire leaves matter just as much. This guide covers each, then shows where a fixed fee fits.
TL;DR
- Executive search firms typically charge about 25% to 33% of first-year remuneration under retained arrangements, while general permanent agency fees sit around 15% to 25%.
- Check the fee base (base salary, super, bonus, car allowance), the payment milestones, GST and the replacement terms before signing.
- Retained search is paid in stages whether or not you hire. Contingent search is paid on placement only.
- A fixed fee removes the link between salary and fee. Our Recruit+ placements cost $5,000 to $6,000 plus a $2,495 engagement fee.
Table of Contents
- How executive recruitment fees are calculated
- Typical fee ranges
- Contingent, exclusive and retained: what changes
- What the fee is calculated on
- Worked examples
- What may cost extra
- Replacement and guarantee terms
- Perspective: why we price by the role, not the salary
- Our fixed-fee pricing for senior hires
- How to compare quotes
- Tax treatment and budgeting
- FAQ
- Sources
How executive recruitment fees are calculated
There are three common ways to charge for an executive hire.
Percentage of remuneration. The agency multiplies an agreed rate by the candidate’s first-year package. This is the default for both contingent and retained work.
Staged retainer. Part of the fee is paid at the start, part at a milestone such as shortlist, and the rest on placement. Staged payments are standard in retained search.
Fixed or bundled fee. The fee is set per role or per process. The Australian Government’s own recruitment and search arrangement works this way: executive recruitment fees are all-inclusive maximum fees per process. They depend on the number of vacancies, include fixed and possible additional components, and are paid on completion or at set milestones.
The public-sector model is a reminder that a fee does not have to be a percentage. Private employers can negotiate the same thing.
Typical fee ranges
Published figures vary by source and by firm, so treat them as ranges to test a quote against, not a fixed price list.
| Arrangement | Typical fee | How it is usually paid |
|---|---|---|
| Contingent permanent recruitment | 15% to 25% of annual salary | On placement |
| Exclusive contingent | Often at the lower end of that range | On placement, with one agency for an agreed period |
| Retained executive search | About 25% to 33% of remuneration | Staged: start, shortlist, placement |
| Fixed fee | A set dollar amount | Usually an upfront fee plus a placement fee |
Seniority pushes the percentage up for a practical reason. Executives are often not looking, so the search involves mapping the market, approaching people directly and confidential conversations. That work takes consultant time whether or not you hire.
Contingent, exclusive and retained: what changes
Contingent
You pay only if you hire someone the agency introduced. The risk sits with the agency, so you are often one of several clients competing for the same candidates, and it may work your role alongside others. Contingent suits roles where suitable candidates are already in the market, such as many general manager, finance manager or sales director positions.
Exclusive
One agency has the role for an agreed period, often with a lower percentage in return. You still pay on success. The gain is more focus on your role. The risk is that you are tied to one firm if it does not deliver, so check the exit terms.
Retained
You engage a firm to run a full search and pay in stages. A common structure is three instalments: one at the start, one at shortlist and one on placement. Retained fits CEO, board and C-suite roles, confidential replacements and searches where the market is thin. You are paying for process and commitment, not only a result.
A useful test: if you could name five or six suitable people yourself, you probably do not need retained search. If you could not, you may.
What the fee is calculated on
Two agencies quoting 25% can send very different invoices. Ask which of these are in the fee base:
- Base salary only
- Base plus superannuation
- Base plus super plus car allowance
- Short-term incentive or bonus, target or actual
- Long-term incentives, equity or sign-on payments
Retained firms commonly charge on total first-year cash compensation, so a bonus can lift the fee. A contingent quote may use base only. Ask for the formula in writing, and for the dollar figure at your expected package.
Worked examples
The arithmetic is simple, but it is worth seeing at your own numbers.
| Package | Rate | Fee |
|---|---|---|
| $150,000 | 20% | $30,000 |
| $180,000 | 22% | $39,600 |
| $250,000 | 25% | $62,500 |
| $250,000 | 33% | $82,500 |
| $350,000 | 30% | $105,000 |
Now add a variable component. If a $250,000 base role has a $50,000 target bonus and the firm charges 30% on total cash, the fee is 30% of $300,000, which is $90,000, not $75,000. A clause about “remuneration” can add $15,000 here.
Check whether the quote is GST-exclusive. If it is, add 10% to the invoice when you budget.
What may cost extra
A headline fee seldom covers everything. Look for:
- Advertising and job board costs, sometimes passed through at cost.
- Assessment and psychometric testing per candidate.
- Reference and background checks, including criminal history checks.
- Expenses, such as interstate candidate travel or research costs.
- Cancellation or termination fees if you pause or stop a retained search.
- Minimum fees on lower-salaried roles.
Visa-sponsored hires bring an extra rule. An employer must not make a 482 or 457 visa holder pay costs relating to their recruitment, so agency fees on those placements stay with you.
Replacement and guarantee terms
Executive hires fail less often than rushed ones, but they do fail, and the cost is large. The guarantee period and its conditions deserve as much attention as the rate. Ask:
- How long does the guarantee last, and from when?
- Is it a free re-search, a credit or a partial refund?
- Does it cover resignation only, or dismissal too?
- Are there conditions, such as paying the invoice within terms?
For payment timing, our guide to placement fee payment terms sets out four common structures.
Perspective: why we price by the role, not the salary
We have seen the same pattern in many hiring conversations. An employer asks for a senior hire, receives a quote tied to salary, and finds that the fee grows as the package grows, though the recruiter’s work does not grow in proportion. The effort of advertising, sourcing, screening and shortlisting for a $150,000 role and a $220,000 role is much the same.
That is why we built a fixed-fee model. You know the cost before the search starts, and you pay a smaller engagement fee up front and a placement fee when someone is hired. For many small and mid-sized businesses, that predictability matters more than a discount. A single percentage-based executive placement can use a large share of a yearly hiring budget, and it is hard to plan around.
We are also clear about where percentage-based retained search earns its fee. If your role is a board-level or highly confidential appointment that needs a long, discreet campaign, a dedicated retained firm is a reasonable choice. For most permanent management, finance, sales, engineering and technology leadership roles in smaller businesses, a fixed fee delivers a strong shortlist without the salary-linked invoice. Our permanent placement fees guide compares the 25% model with fixed fees in more detail.
— Josh Townsend
Our fixed-fee pricing for senior hires
We publish our fees. There are two service levels, each with an engagement fee and a placement fee:
| Service | Engagement fee | Placement fee | Total range |
|---|---|---|---|
| Recruit | $895 | $3,900 to $5,000 | $4,795 to $5,895 |
| Recruit+ | $2,495 | $5,000 to $6,000 | $7,495 to $8,495 |
The placement fee within each range depends on the candidate’s salary. Optional extras are listed separately: a criminal check at $129 and a psychometric evaluation at $199 per candidate. If a hire does not work out in the first two to three months, a replacement campaign costs $1,000.
On a $250,000 package, a 25% fee is $62,500. Our Recruit+ total range is $7,495 to $8,495. Compare services as well as prices: ask what search, screening and shortlisting each includes.
If you are planning an executive or senior leadership hire, see our fixed-fee structure and work out the cost for your role before you speak to any agency. You can also read how our flat fee recruitment model works.
How to compare quotes
Put every quote on the same footing.
- Convert to dollars. Calculate each fee at your expected package, with GST.
- Check the fee base. Base, base plus super, or total cash.
- Map the payments. Retainer, shortlist payment and success payment, and what is refundable.
- Read the exclusivity terms. How long, and what happens when it ends.
- Read the guarantee. Length, remedy and conditions.
- Ask what is included. Assessments, checks, advertising and reporting.
- Ask who does the work. A named consultant, or a team you meet once.
An employer who has done these seven steps knows what they are buying. A cheaper percentage with a narrow guarantee and large extras may cost more than a higher percentage with a full inclusion list.
Tax treatment and budgeting
Fees are normally a business expense, but the treatment depends on your circumstances, so confirm it with your accountant. Our article on whether recruitment fees are tax deductible covers the usual questions. For planning, our guide to building a recruitment budget shows how to allow for agency fees, advertising and onboarding costs in one plan.
FAQ
What is the typical fee for executive recruitment in Australia?
Retained executive search commonly sits around 25% to 33% of first-year remuneration, according to published agency fee summaries. General contingent permanent recruitment is usually lower, at roughly 15% to 25%. Your actual rate depends on seniority, exclusivity, how hard the role is to fill and what counts as remuneration.
Does it cost money to use a recruitment agency?
Yes, for employers. Candidates do not pay agencies to be placed, and for visa-sponsored staff the employer cannot pass recruitment costs to the worker. Employers pay either a percentage, a staged retainer or a fixed fee.
What is the difference between contingent and retained search?
Contingent search is paid only when you hire, and the agency carries the risk. Retained search is paid in stages from the start, in exchange for a dedicated, exclusive search. Retained suits confidential, board-level and scarce-talent roles. Contingent suits roles where candidates are reachable.
Can I pay a fixed fee for an executive hire?
Yes. A fixed fee sets the cost per role instead of tying it to salary, and even government executive recruitment pricing is set per process. We offer fixed fees across management, finance, sales, engineering, technology and executive leadership roles, so you can see the total before you start.
Are executive recruitment fees negotiable?
Often, yes. Employers can negotiate the percentage, the fee base, payment milestones, exclusivity period and guarantee, especially when giving one agency exclusivity or several roles. Negotiate the terms as well as the rate, because the terms often change the final invoice more.
Sources
- Head Agreement, Recruitment and Search Services: Schedule 3 Pricing (Department of Finance)
- 482 and 457 visa holders: workplace rights and entitlements (Fair Work Ombudsman)
- Recruitment agency costs in Australia: fees, margins and hidden charges
- How much do recruitment agencies charge in Australia in 2026?
- How much does executive search cost in 2026?
