Updated: June 2026 

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What does a recruitment agency do for employers?

A recruitment agency finds, screens and supplies staff on an employer’s behalf — handling advertising, vetting and shortlisting, and for temporary workers, payroll and compliance too. You brief the role; the agency does the sourcing legwork and presents people ready to interview or start.

This guide covers what recruitment agencies charge, whether they’re worth it, how to spot a legitimate one, and the hiring law UK employers must know.

Hiring is one of the most expensive decisions a business makes — and one of the easiest to get wrong.

A role left open costs you in lost output. A bad hire costs you far more. A good agency takes the time, the risk and the legwork off your desk — but only if you pick the right one.

Tell us the role — we'll tell you how to fill it

A quick, no-obligation chat with a local recruiter who knows your market and what good looks like.

MD & founder, 30+ years in recruitment 100+ years across the team Deep local knowledge

How much do recruitment agencies charge in the UK?

Most UK agencies charge a percentage of the candidate’s first-year salary for permanent placements — commonly 15–25%, rising for harder-to-fill or specialist roles. Temporary staff are charged differently, as a margin on the hourly rate. The right figure depends on the role: the harder it is to fill, the more sourcing work it takes.

There’s no fixed rate, because no two vacancies are the same. Broadly, though, fees fall into two models:

    • Permanent placements — a percentage of the first-year salary, usually on a contingency basis (no placement, no fee). Standard roles sit lower; specialist or hard-to-fill roles cost more because they take real search effort.
    • Temporary workers — an hourly charge rate covering the worker’s pay, employment costs (National Insurance, holiday pay, pension) and an agency margin. You pay for hours worked, with the admin handled for you.

Because the figure is role-dependent, the most useful thing you can do is describe the vacancy and let us talk you through the likely cost — and what’s included for it. For a full breakdown, see our guide to recruitment agency fees in the UK.


Why the cheapest quote isn’t always the cheapest hire

A low headline percentage can look like a bargain — until you look at what sits behind it.

    • No rebate protection. If the hire leaves in week three, a low fee with no cover means you simply pay again.
    • No consultancy. A flat, cut-price fee often means no proper briefing, no salary or market guidance, and no real shortlisting — just CVs forwarded.
    • No active sourcing. Hard-to-fill roles need headhunting and direct approaches, not a job-board repost. That effort is what a fair fee reflects.
    • Compare total cost, not headline rate. Fee, plus rebate protection, plus the time you save, plus the cost of getting it wrong — that’s the real number.

A good agency stands behind its placements with rebate protection — cover if a permanent hire doesn’t work out within an agreed period. The shape of that cover depends on the role, so it’s agreed with you up front.

Watch for a low headline fee with no rebate built in. If the hire leaves, you’re back to square one — and paying twice.

If you’d rather not gamble on the lowest quote, tell us about the role and we’ll be straight with you on cost and cover. There’s more in our guides to why the cheapest quote isn’t the cheapest hire and the true cost of a bad hire.

Hiring done properly — not just CVs forwarded

Temporary or permanent, tell us the role and we'll talk you through it — realistic pay, who's available locally, and a shortlist that fits. We do the sourcing and screening; you make the final call.

MD & founder, 30+ years in recruitment 100+ years across the team Rebate protection

Is it worth using a recruitment agency?

For most employers, yes — when the cost of a role sitting empty, or being filled badly, outweighs the fee. An agency saves you the advertising, screening and shortlisting time, and gives you access to people who aren’t actively scrolling job boards.

The hidden cost is in getting it wrong. The REC has estimated that a poor hire at mid-manager level on a £42,000 salary can cost a business over £132,000 once wasted salary, lost productivity, management time and re-hiring are added up.

There’s a time cost too: a permanent vacancy takes around 48 days to fill on average in the UK. For an income-generating or hard-to-cover role, that’s weeks of lost ground a good agency can shorten. We weigh up the trade-offs in full in is it worth using a recruitment agency?


How to check a recruitment agency is legitimate

Check the agency is a registered company, ask which trade body it belongs to, and confirm it never charges you before any work is agreed. A legitimate agency is open about its fees, its rebate terms and how it finds candidates. Our guide on how to check a recruitment agency is legitimate runs through every check.

    • Registered UK company. You can check it on Companies House.
    • Trade body membership. Look for the REC (Recruitment & Employment Confederation) or APSCo.
    • Clear written terms of business provided before they start work — fees, rebate and notice all in writing.
    • Transparency on sourcing. A good agency will tell you how it vets and where its candidates come from.
    • It never charges the candidate. Agencies are paid by the employer — a fee charged to a job seeker is a red flag.
    • A local presence. Being able to meet face to face says a lot about how an agency works.

How quickly can you get staff?

For high-volume industrial and warehouse roles, a local agency with a live candidate pool can often supply screened temporary staff within days — sometimes for a start the same week. Permanent and specialist roles take longer, as they involve search and notice periods.

Two things speed it up: an agency that already holds a vetted, ready-to-work pool in your area, and a clear brief from you early on. The more an agency knows about the role and the site up front, the faster the right person lands. See how to hire temporary staff fast and how quickly an agency can supply staff, or tell us what you need and we’ll move quickly.


Temp, temp-to-perm and permanent — the three options

Employers usually hire one of three ways. The right route depends on how long you need the role and how certain you are about it.

    • Temporary. Flexible cover for peaks, absence or short-term projects. The agency employs and pays the worker; you pay for the hours. Ideal for seasonal demand and short-notice gaps.
    • Temp-to-perm. Try before you commit. The worker starts as a temp, and you take them on permanently if they’re the right fit. A transfer fee may apply (see below).
    • Permanent. A direct hire placed by the agency, usually on a contingency fee. Best when you know the role is long-term.

Not sure which route fits? We explain the differences in temp, temp-to-perm and permanent explained, along with the transfer fees that can apply when a temp goes permanent.


Recruitment law every UK employer should know

A few rules catch employers out when using agency staff. Here’s how the main ones work in practice. This is general guidance, not legal advice — check the current GOV.UK or Acas guidance for your situation.

The 12-week rule (Agency Workers Regulations 2010)

Once an agency worker has done the same role for the same hirer for 12 weeks, they qualify for equal treatment — the same basic pay and holiday as a comparable direct employee. Some rights, like access to facilities and information on vacancies, apply from day one. We cover this in full in the Agency Workers Regulations 12-week rule explained.

Taking a temp on permanently (transfer fees)

You can take an agency temp on permanently, but a transfer fee may apply because the agency introduced them. You can usually avoid it by agreeing an extended period of hire first, or by waiting until the relevant period ends — 14 weeks from the assignment’s start or 8 weeks from its end, whichever is later. There’s more detail in temp-to-perm transfer fees explained.

Right to work

Everyone you take on must have the right to work in the UK. For agency temps, the agency that employs and pays them normally carries out the check — but it’s worth confirming it’s been done.

A good agency handles AWR tracking, right-to-work checks and payroll for its temporary workers, so most of this stays off your desk. For the bigger picture, see UK recruitment law for employers.


Hiring across Lancashire

Being a local agency means knowing the Lancashire labour market town by town — the estates, the employers and the roles that are hardest to fill in each.

We supply temporary and permanent staff to employers across Preston, Blackburn, Burnley, Leyland, Blackpool, Chorley, Accrington, Nelson and Lancaster — pick your town for local hiring guidance, or tell us what you need and we’ll come back to you.


Frequently asked questions

How do UK recruiters get paid?

Employers pay the agency: a percentage of the salary for a permanent hire, or a margin on the hourly rate for temporary staff. Candidates are never charged.

What are standard recruitment agency fees in the UK?

Permanent placements commonly fall between 15% and 25% of the first-year salary, rising for specialist or hard-to-fill roles. Temporary staff are charged as an hourly margin instead.

How much do temp agencies charge?

For temporary workers, agencies charge an hourly rate covering the worker’s pay, employment costs such as National Insurance, holiday pay and pension, and an agency margin. There’s no fixed percentage.

How do temp-to-hire positions work?

You take someone on as a temp first, then make them permanent if they’re a good fit. A transfer fee may apply, or you can agree an extended period of hire up front to avoid one.

How long does the recruitment process take in the UK?

Temporary roles can be filled within days. A permanent vacancy takes around 48 days on average, depending on the role, the market and the candidate’s notice period.

Do temp agencies still exist in the UK?

Yes. Temporary and flexible staffing is widely used across the industrial, logistics and commercial sectors, especially for seasonal peaks and short-notice cover.


Related guides

How we work

A local partner, not a CV factory

Led by an MD & founder with 30+ years in recruitment, and a team with over 100 years between them, we take the time to understand the role, the site and the team — then find people who fit.

  • Proper briefing & local market advice
  • Screened, interviewed candidates
  • Temp, temp-to-perm & permanent
  • Payroll & compliance for temps
  • Rebate protection on permanent hires

Big enough to cope, small enough to care.

This article is general guidance for employers and is not legal advice.


About Matrix Personnel Ltd — Lancashire Recruitment Specialists

Matrix Personnel Ltd is Lancashire’s local recruitment specialist — Lancashire people serving Lancashire businesses.

With decades of combined experience across the industrial and commercial sectors, we match the right people to the right roles — for temporary cover and permanent placements alike — right across Preston, Blackburn, Burnley, Blackpool, Lancaster and the wider Lancashire area.

We handle the screening, payroll, and compliance behind the scenes, so you get reliable staff without the hassle.

Areas we cover: Preston, Blackburn, Blackpool, Burnley, Lancaster, Chorley, Leyland, Accrington, Nelson, Colne, Clitheroe, Darwen, Ormskirk, Skelmersdale, Fleetwood, Lytham St Annes, Morecambe, Rossendale, Bolton, Wigan — and surrounding towns.

Looking to hire staff in Lancashire?

Whether you need temporary workers at short notice or a permanent hire who fits first time, we are ready to help. Get in touch today for a confidential, no-obligation chat.

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Big enough to cope, small enough to care.

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