- 15–30% of annual salary
- No fee without a hire
- Low commitment
Performance-based recruitment: you pay only when you hire.
Contingency recruitment is the most common way agencies charge, and the least committed. This guide explains how the fee works, what it really costs and when it's the right choice. We don't sell this model ourselves, so it's a straight comparison.
search: senior-backend
HiredRole sent to 3 agencies
brief.share()
42 CVs received
inbox.collect()
6 interviews, 1 offer
pipeline.screen()
Fee invoiced on hire
20% × €60,000
15–30%
of the first-year salary, the usual fee
€0
paid before a candidate is hired
4–6 mo
a typical replacement guarantee
3+
agencies often briefed on the same role
How it works
One fee, paid only after a successful hire
The agency carries the risk of the search, so it decides where its time goes: usually to the roles most likely to close fast.
Key facts
- Commitment
- Low
- How you pay
- Fee on hire only
- Typical cost
- 15–30% of annual salary
- Replacement guarantee
- Usually 4–6 months
- Recruiting tools paid by
- Agency
Not offered by Dataforge
How it works
Also called contingency recruitment or pay-for-results. You usually brief several agencies or freelance recruiters at once and pay only the one whose candidate you hire.
The fee is typically 15–30% of the new hire's first-year gross salary, or a fixed amount agreed upfront.
Typical market examples
- Software engineer, Tallinn · agency, 15%
- ≈ €6,000
- Data analyst, London · agency, 25%
- ≈ £15,000
- Any role, Berlin · freelance recruiter, fixed fee
- €5,000
A typical search
How a contingency search usually runs
Brief
You share the job description with one or several agencies, often in a short call.
CV race
Agencies send profiles as fast as they can. Whoever introduces a candidate first usually owns the fee.
Interviews
You screen the CVs, run the interviews and give feedback to each agency yourself.
Hire and invoice
When a candidate signs, that agency invoices its percentage, and the guarantee period starts.
Fee calculator
Estimate a contingency fee
Move the sliders to see what one placement costs at a typical agency rate.
Estimate
- Fee on hire
- €10,000
- Paid before the hire
- €0
Market estimate, not a quote. Some agencies and freelancers charge a fixed fee instead of a percentage.
Pros and cons
What you gain, and what you give up
Advantages
Low financial risk
If nobody is hired, you pay nothing, which makes it easy to try several agencies at once.
Speed
Agencies compete to be first, so the first CVs often arrive within days.
Replacement guarantee
If the new hire leaves within 4–6 months, most agencies search again for free.
No tooling costs
Job boards, LinkedIn Recruiter seats and candidate databases are the agency's expense.
Disadvantages
Quantity over quality
Being first matters more than being right, so you spend hours screening weak CVs.
Low commitment
Recruiters split their time across many clients and focus on the roles they expect to close quickly.
Hard roles get dropped
Senior, niche or modestly paid roles rarely get real effort, because the odds of earning the fee are low.
Candidate experience suffers
Candidates may hear about you from several agencies and rarely get feedback, which hurts your employer brand.
Expensive at volume
Paying 15–30% per placement adds up quickly once you hire more than a few people a year.
Is it right for you?
When contingency recruitment makes sense, and when it doesn't
Contingency works as an extra channel for common roles. It struggles when quality, speed of a hard search or your employer brand matter most.
Good fit
Choose it when
- You want an extra source of candidates next to your own hiring
- You need volume and can screen many CVs yourself
- A common role must be filled urgently
- You hire only once or twice a year
Poor fit
Look elsewhere when
- The role is senior, niche or hard to fill
- Candidate experience and employer brand matter to you
- Nobody in-house has time to screen CVs
- You plan to hire several people this year
Comparison
Contingency vs retained vs RPO
| Performance-based | Installment (retained) | RPO | |
|---|---|---|---|
| When you pay | Only on hire | Deposit, shortlist, hire | Every month |
| Typical cost | 15–30% per hire | 15–30% per hire | Fixed monthly fee |
| Recruiter's focus | Several clients at once | Your search | Your company |
| What you receive | Many CVs, mixed fit | 3–5 interviewed candidates | Interviewed candidates |
| Candidate experience | Rarely managed | Managed for you | Managed for you |
| Best for | Urgent, common roles | Key or hard-to-fill roles | Many roles, fast growth |
FAQ
Contingency recruitment FAQ
What is contingency recruitment?
A pricing model where the agency is paid only when you hire a candidate it introduced. It's also called performance-based or no-win-no-fee recruitment.
How much do contingency recruiters charge?
Usually 15–30% of the new hire's first-year gross salary. For a €50,000 role that's €7,500–€15,000. Some freelance recruiters charge a fixed fee instead, for example €5,000.
Is there a guarantee if the hire leaves?
Most agencies offer a 4–6 month replacement guarantee. Read the terms: some refund part of the fee, others only run the search again.
Can I use several agencies for the same role?
Yes, that's common with contingency. Agree upfront who owns a candidate introduced by two agencies, or you may end up in a fee dispute.
Why doesn't Dataforge offer contingency recruitment?
Because the model rewards speed over quality. We prefer hourly, installment or RPO agreements, where both sides commit and we can spend the time the right candidates need.
Other pricing models
Compare it with the other recruitment models
Each model trades cost, speed and commitment differently.
- Offered by DataforgeHourlyYou buy a recruiter's time and point it at the roles or tasks that matter most.Commitment: MediumRead the guide: Hourly-billed recruitment
- Offered by DataforgeInstallmentA placement fee split into stages, in exchange for a dedicated, accountable recruiter.Commitment: HighRead the guide: Installment (retained) recruitment
- Offered by DataforgeRPOA monthly subscription to an embedded recruitment team that runs part or all of your hiring.Commitment: HighRead the guide: Recruitment process outsourcing (RPO)
Want a recruiter who commits to your role?
Book a 30-minute call. We'll look at your open roles and suggest an hourly, installment or RPO setup that fits.