Construction Recruitment Agency Fees in Australia

The agency invoice lands in your inbox. You stare at the number and wonder if it's fair.

Here are the construction recruitment agency fees Australia agencies say they charge, and what the fee should get you.

How much do construction recruitment agencies charge in Australia?

Most agencies charge a percentage of the hire's first-year pay. Published ranges differ, from about 10% up to 25% or more, and senior roles cost more. Some agencies charge a flat fee instead. Labour hire firms add a margin to the hourly rate. Always ask what the fee covers.

The ranges don't agree, so here is what a few agencies say.

Source	What it says
PerthTrades	10% to 15% of annual salary, or a flat $3,000 to $6,000
Michael Page	Agency fees are typically 15% to 25%
Manpower	15% to 20% for junior roles, 18% to 25% for mid-level, 20% to 30% or more for senior

Manpower and Michael Page write for all industries, not only construction.

These are all agencies. They are telling you what they charge, so treat the numbers as a guide. The only price that counts is the one in the quote you are holding.

I've spent over ten years in construction recruitment and twelve on the tools before that. I've placed more than 1,000 trades, labour and management staff. So I know what is on the other side of that quote.

See what an empty role costs you

Before you compare agency fees, put your own numbers in the free hiring cost check. It takes a few minutes.

The three fee models

Agencies charge in one of three main ways.

A percentage of salary. This is the most common model for permanent hires. You pay a set percentage of the first-year pay. The higher the pay, the higher the fee.

A flat fee per hire. You pay the same amount whatever the pay is. PerthTrades, for one, quotes $3,000 to $6,000.

A labour hire margin. The agency employs the worker and charges you an hourly rate. That rate covers the worker's pay, their on-costs and the agency's margin. PerthTrades puts the margin at 20% to 35%. Manpower says the rate you pay includes pay, on-costs and the agency margin (Manpower).

Labour hire is a different thing from a placement fee. You are renting a worker, not hiring one. I cover that in labour hire vs direct hire.

Construction recruitment agency fees Australia: a worked example

This is an example only. The numbers are made up. They are not a quote from anyone.

Say you want to hire a carpenter. Here is what each fee type costs at two pay levels, with a made-up flat fee of $4,000.

First-year package	15% fee	20% fee	Flat fee
$100,000	$15,000	$20,000	$4,000
$130,000	$19,500	$26,000	$4,000

With labour hire, you pay no placement fee. You pay a higher hourly rate for as long as the worker is on your job.

A percentage fee grows with the pay. A flat fee does not. That doesn't make one better. It means you should know which one you are signing up to.

Also check the maths on your own hire. Ask if the fee is on base pay or on the full package.

Manpower says the package usually includes base pay plus super and, depending on the agency, expected bonuses or allowances (Manpower). That changes the number.

What the fee should cover

A fee is only a good deal if you know what it buys. A decent agency fee should cover:

• Writing and placing the job ad.
• Searching for and calling people.
• Screening, so you only meet people who fit.
• Interviews and a shortlist.
• Reference checks.
• A replacement or refund if the hire leaves early.

On that last point, Manpower says a replacement guarantee is typically three to six months. Get the period and the terms in writing.

Also ask when you pay. Manpower says a contingent fee is paid only if the role is filled. A retained fee is paid in instalments, starting when the search begins.

Now ask what is not covered. Extra ads, extra checks or a second round of search may cost more. Some terms replace the person once only. Read the terms before you sign.

Ask these questions first:

1. Is the fee a percentage or a flat amount?
2. What is the fee calculated on: base pay or the full package?
3. When is each payment due? Is any of it up front?
4. How long is the replacement period, and what exactly triggers it?
5. Do you replace the person once, or until it works?
6. Who checks references, and do they speak to real foremen or site managers?
7. What happens if I don't hire anyone you send?
8. What is not included?

If an agency gets vague on any of these, that tells you something.

The cost nobody quotes: an empty role

The fee is not the full cost. An empty role costs you too.

Think about what happens when you are a person short:

• The work slows down.
• The crew who are left do overtime or get stretched.
• You chase suppliers, then cover the gap on site.
• Your quotes take longer.
• Your own hours go up and your family time goes down.

None of that appears on an agency quote. But it is real money, and it grows every week the role stays open.

So there are two numbers to compare. One is the fee. The other is what each empty week costs you.

If the fee gets you a good person weeks faster, it may pay for itself. If it doesn't, it won't.

There is a free tool for this. Run the free hiring cost check and put in your own numbers rather than guessing. You can also find out how ready your hiring is with the free hiring scorecard.

Free report: 7 Hiring Mistakes

Learn the mistakes builders make before they pay a fee. Get the free 7 Hiring Mistakes report.

How to compare two quotes

Say two agencies quote you for the same role. One says 15% and one says a flat fee. Which is cheaper? You can't tell from the headline number alone.

Here is how I'd line them up. This is an example only, with made-up numbers.

• Write down the likely package for the role. Say it is $110,000.
• Work out the percentage quote: 15% of $110,000 is $16,500.
• Put the flat quote next to it. Say it is $4,000.
• Now look at what each one gives you: replacement period, references, who does the work.

A big gap in price is not proof that the cheap one is worse. But it is a reason to ask what is missing. Ask both agencies the same eight questions. Then compare like with like.

Also ask about your own side of the job:

• Who writes the brief?
• Who books the interviews?
• Who makes the offer?

Some agencies hand all of that back to you. Then you pay a fee and still do a lot of the work.

When an agency is worth it, and when it is not

I'm not against agencies. They have a place.

An agency is worth a look when:

• The role is urgent and you can't wait.
• The role is rare, such as a specialist trade or a senior manager.
• You don't have time to run a search yourself, and you know the cost of waiting.
• You hire once in a blue moon and don't plan to repeat it.

An agency is usually not worth it when:

• You hire the same trade again and again. You pay the fee every time, and you learn nothing from it.
• The role is common and plenty of people are looking.
• You have not written a clear brief. An agency can't fix a vague job.
• You are paying a percentage on a high package and the work is routine.

Michael Page lists the same warning sign: if you fill the same role again and again, you could build the skill inside your own business (Michael Page). It also says agencies help with speed and with reaching people who are not looking.

The pattern I see is simple. If you hire often, the fees add up fast, and you are paying to rent a skill you could learn. If you hire rarely, an agency can be a fair trade.

For a closer look at the second case, read in-house recruitment vs agency.

A flat fee in practice: Crew Filled

HiredConstruction also offers a done-for-you hiring service called Crew Filled. It uses the flat fee model above: a set fee per hire, and the fee doesn't go up with the salary.

• Price: from $4,000 per hire. It is $4,000, $7,000 or $10,000, depending on the role. $750 is paid upfront.
• What you get: a role brief, the ads, active sourcing on Indeed and LinkedIn, screening and red-flag checks, interviews and a shortlist, reference checks with real foremen and site managers, an offer and start date locked in writing, and a check-in during the first 14 days.

Use the eight questions above on us too. If you'd like to talk it through, book a free 15-minute discovery call.

Another option: learn to run your own hiring

We mainly teach builders to run their own hiring. We also offer a flat-fee option when you need someone fast.

If you hire often, that skill pays you back. Our Construction Hiring System course is $497 AUD. If you want one hour on your own hiring problem, the Hiring Fix Call is $295 AUD and runs for 60 minutes. You can also start with the free 7 Hiring Mistakes report.

You don't need a recruitment background. You need a clear brief, a good ad, a few places to look, and a fast way to say yes. That is learnable.

Not sure where to start? Book a free 15-minute discovery call. For the full method, read how to hire tradies without a recruitment agency.

General information only, not legal, financial or employment advice. Fee figures are what each source published, not quotes, and they can change. Check each source and get your own quotes.

Want help with your next hire?

Book a free 15-minute discovery call and we will talk through your next hire. Prefer to learn it yourself? The Construction Hiring System course teaches the full method.

Need someone fast? We also offer a flat-fee option. See the Crew Filled section above.

FAQ

What are the main recruitment agency fee models?

There are three main models. A percentage of salary is the most common for permanent hires. A flat fee per hire stays the same whatever the pay. Labour hire adds a margin to the hourly rate you pay for a worker. Each one suits different jobs.

Is a 15% to 20% recruitment fee worth it for a tradie hire?

It can be, if the role is urgent, hard to fill or senior. For the same trade again and again, it often is not, because you pay the fee every time. Compare the fee with what an empty role costs you each week, then decide.

What does a recruitment agency fee include?

It should cover the ad, finding people, screening, interviews and a shortlist. Good agencies also check references and offer a replacement if the hire leaves early. Get this in writing. Ask what is not covered, such as extra ads or extra checks, before you sign.

Do I pay recruitment agency fees upfront?

It depends on the model. Many agencies charge only when someone starts, and some ask for part of the fee first. Retained searches usually need money up front. Ask when each payment is due and what happens if the person leaves in the first few weeks.