If you lead HR or oversee office hiring, you are likely balancing headcount plans with tight budgets and even tighter timelines. Understanding how recruitment fees work helps you choose the right hiring route and set expectations with finance from day one.
This guide breaks down typical fee structures for permanent PA, EA, HR and business support roles in London and Manchester, what drives costs up or down, how temp and contractor margins are built, and how pay flows to agency workers. We also touch on the Agency Workers Regulations (AWR), including the 12 week rule, and when to consider temp, contract or permanent.
Throughout, you will see where a specialist partner like TalentYard adds value so you can compare like for like, not just headline percentages.
What drives recruitment fees
Recruitment pricing usually reflects three factors:
- Scarcity of skills and competition for talent. Niche experience, seniority, confidentiality, second-language skills and sector specifics narrow the pool and often increase fees.
- Speed and availability. If you need a same-week shortlist or out-of-hours sourcing, you are paying for immediate capacity and networks.
- Scope and risk. Extensive market mapping, discreet searches, complex compliance and refund guarantees all carry time and delivery risk that is priced in.
Specialist PA, EA, HR and business support roles benefit from focused networks. That often shortens time to hire and reduces the opportunity cost of unfilled roles.
Typical permanent recruitment fees
In London, reputable agencies typically charge a percentage of first-year base salary for permanent placements. For PA, EA, HR and business support roles, you will usually see:
- London: roughly 15 to 25 percent for mid-level hires, with higher ranges for senior, confidential or highly niche assignments.
- Manchester and the North West: roughly 12 to 22 percent, again higher for specialist or senior briefs.
A “typical agency fee” for a mid-level Office Manager or HR Advisor would often land around the middle of these bands. Exact figures vary by scope, exclusivity and speed required. If you engage on an exclusive basis, you can sometimes secure a preferential rate in exchange for commitment.
When you compare proposals, check what is included. At TalentYard, the fee covers targeted market mapping, tailored shortlists, structured interviews, interview coordination, offer support, reference checks and compliance. A competitive refund guarantee is also included to reduce downside risk if a placement does not work out. If you want to explore this in more detail, our pages on PA and business support hiring and specialist HR recruitment outline how we work.
- Explore PA and business support hiring approaches in London: https://talentyard.co.uk/pa-business-support/
- Learn about HR recruitment in London: https://talentyard.co.uk/specialist-hr-recruitment/
How temp and contractor costs are built
For temps and contractors, you will not pay a salary plus a percentage. Instead, you are charged an hourly or daily invoice rate. That rate typically includes:
- The worker’s pay rate (gross pay to the worker).
- Statutory on-costs that the employer of record must cover, such as Employer National Insurance contributions, Apprenticeship Levy where applicable and holiday pay accrual for PAYE temps.
- The agency’s margin, which funds sourcing, onboarding, payroll administration, umbrella or PAYE processing and ongoing support.
The exact split depends on pay rate and assignment length. As a rough guide for business support temps, an agency margin might typically sit in the single to low double digit percentage range of the total bill, but the full bill rate can be 1.3 to 1.7 times the worker’s base hourly pay once statutory costs are included. Rates differ between London and Manchester due to market pay, commuting expectations and availability.
Two important clarifications:
- Agencies do not “take wages” from workers. Workers are paid their agreed gross pay by the agency or umbrella provider. Your invoice is a separate company-to-company charge that includes statutory on-costs and the agency margin.
- Holiday pay for PAYE temps is accrued and paid in line with regulations. It is not a deduction by the recruiter.
If you need fast cover for reception, team assistant or clinic coordination, our temporary staffing overview explains availability and turnaround times for agency workers in London: https://talentyard.co.uk/reliable-flexible-temporary-staff/
AWR and the 12 week rule, in plain English
The Agency Workers Regulations (AWR) aim to ensure agency workers receive equal treatment in certain basic terms and conditions compared to a direct hire in the same role after a qualifying period. In simple terms:
- From day one, agency workers should have access to shared facilities and information on vacancies.
- After 12 weeks in the same role with the same hirer, qualifying conditions like basic pay and holiday entitlement should be no less favourable than a comparable employee, subject to specific rules and any pay-between-assignments model.
This is a high-level overview, not legal advice. For complex scenarios, consult your legal or HR adviser, particularly if you have rotating assignments, breaks in service or atypical working patterns.
When to use temp, contract or permanent
Choosing the right route is mostly about time horizon, workload confidence and budget visibility.
- Temp. Best for urgent cover, seasonal peaks, short projects or when you need to test a workload before committing. Great for reception, front-of-house, events support and team coordination. Temp-to-perm can de-risk a new headcount.
- Contract or interim. Ideal for defined projects, maternity covers, implementations or when you need specific expertise for 3 to 12 months. Day rates can look higher than salaries, but they consolidate flexibility and on-costs.
- Permanent. Choose this when the role is core to operations, continuity matters and you want to invest in culture fit and retention.
Manchester clients often use contract and interim resource to manage transformation projects while protecting permanent headcount. If you are comparing options in the North West, our Manchester page gives a useful snapshot: https://talentyard.co.uk/manchester-pa-hr-business-support-recruitment/
What TalentYard includes in the fee
Beyond presenting CVs, your fee with TalentYard covers:
- Market mapping across London and Manchester, including passive talent outreach.
- Structured screening and shortlisting focused on capability and culture.
- Hands-on interview coordination, candidate prep and feedback loops.
- Compliance checks, references and secure data handling.
- Offer management, start-date logistics and post-placement follow-up.
- A competitive refund guarantee for peace of mind on permanent hires.
We focus on PA, EA, HR and business support, which means faster shortlists and practical insight into what success looks like in these roles.
Quick FAQ
- How much do recruitment agencies charge in London? For permanent PA, EA, HR and business support hires, budgets typically range from about 15 to 25 percent of first-year base salary depending on seniority, scarcity and speed. Temporary workers are billed at an hourly or daily rate that includes gross pay, statutory on-costs and an agency margin.
- What is a typical agency fee? Mid-market, mid-level roles often settle around the middle of the stated ranges. Exclusivity, seniority and complexity can push fees higher or lower.
- How much do agency workers cost? Expect a bill rate that is commonly 1.3 to 1.7 times the worker’s base hourly pay once Employer National Insurance, holiday pay accrual and the agency margin are included. The exact multiplier varies by pay rate and region.
- Do agencies take some of your wages? No. Workers are paid their agreed gross pay by the agency or umbrella. The client’s invoice covers that pay plus statutory on-costs and the agency margin. Candidates should not be charged to register or to be represented.
- What is the 12 week rule for agency workers? Under AWR, after 12 weeks in the same role with the same hirer, an agency worker is entitled to equal treatment in certain basic terms and conditions to a comparable employee. Seek professional advice for edge cases.
Summary and next step
Recruitment fees make more sense when you separate the drivers: scarcity, seniority, speed and scope. Permanent fees in London and Manchester are broadly comparable within the ranges above, and temp costs reflect statutory on-costs plus a transparent margin rather than deductions from worker pay. If you are weighing temp versus contract versus permanent, start with time horizon and risk, then compare like for like on what each partner includes in their fee.
If you would like a clear, line-by-line costing for an upcoming PA, EA, HR or business support brief, the TalentYard team is happy to help you model options for London or Manchester and find the most cost-effective route.
