HiredConstruction

For the UK and Ireland

Construction Recruitment Agency Fees UK and Ireland

Construction recruitment agency fees UK and Ireland: what agencies charge, what the fee covers and how a flat fee compares. Plain English for contractors.

This article is for the UK and Ireland. Read the Australian version.

An agency invoice lands on your desk and you can't tell what it actually bought.

Construction recruitment agency fees UK and Ireland are hard to compare. Here is how they work.

How much does a construction recruitment agency charge in the UK?

Many UK agencies charge a share of the hire's first-year pay for permanent staff. Published rates vary, so check named sources. Temp workers cost an hourly or daily rate that includes the agency's cut. Ask each agency for its rate in writing before you agree.

There is no single price. Temporary workers and permanent hires are priced in different ways, and very few agencies publish their rates. The numbers below come from a handful of named agencies, and they don't all agree.

For permanent staff, many agencies charge a percentage of the first-year pay. One London construction agency says 10% to 20% (LJB & Co).

Two Irish sources quote 15% to 25%. Recruitroo says that range is common for commercial, finance and IT roles, not only construction (Recruitroo, Talenthub). For temporary workers, the agency adds a margin to the pay rate.

Those are agencies telling you what they charge. Treat them as a guide. The only price that counts is the one on the quote in front of you.

I work from the Gold Coast, Australia and Belfast, Northern Ireland. I've spent over ten years in construction recruitment and twelve on the tools before that, and I've placed more than 1,000 trades, labour and management staff. This guide is the contractor's side of the table.

See what an empty role costs you

Before you compare agency fees, put your own numbers in the free hiring cost check. It works in pounds.

How the fees work

Temporary workers. The agency employs the worker, or pays them through CIS or their own company, and bills you a charge rate. That rate is per hour or per day. It includes the worker's pay and the agency's margin. LJB & Co says London construction margins commonly run between 15% and 30% of the pay rate (LJB & Co).

Permanent hires. The agency finds a person for you to employ. You pay a fee once. Usually it is a percentage of the first-year pay, so a higher salary means a higher fee. Some agencies charge a flat fee instead.

Here are a few more named examples. Again, these are what those firms say they charge:

  • Tempeo, a UK agency, publishes a flat fee for permanent hires: £3,500 for a salary under £50,000 and £4,500 at £50,000 or above, with an eight week rebate. For temporary workers paid through CIS or their own company, it says its margin is £25 per person per day (Tempeo).
  • Recruitroo, which sells recruitment in Ireland, says flat fees there typically run €3,000 to €8,000 per hire (Recruitroo).
  • FH Recruitment, an Irish agency, notes that very few agencies publish their rates. It points to one large agency's published Irish terms that charge 22% to 27%, and it says that is one data point, not a market average (FH Recruitment).

So sources vary, and a few are sellers of a particular model. Ask for terms in writing.

Construction recruitment agency fees UK: a worked example

This is an example only. The numbers are made up to show how the models behave. They aren't a quote from anyone.

A permanent hire. Say you want to hire a site supervisor. Here is what each model costs at two salaries. The flat fee is an example of £3,500.

Salary 15% fee 20% fee Flat fee
£40,000 £6,000 £8,000 £3,500
£60,000 £9,000 £12,000 £3,500

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

A temporary worker. Say an operative is paid £150 a day. Say the agency adds a 20% margin, which is £30. Your charge rate is £180 a day.

Over 20 days, the margin is £600. If the margin were a flat £25 a day, it would be £500.

But if the pay went up to £200 a day, a 20% margin would be £40 a day, while a flat margin would stay at £25.

Also check what the percentage is applied to. In Ireland, FH Recruitment points out that some terms apply the fee to total first-year pay including bonus and benefits, not just base salary. Ask.

What the fee should cover

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

  • Writing and placing the advert.
  • Searching for people and calling them.
  • Screening, so you only meet people who fit.
  • Interviews and a shortlist.
  • Ticket and card checks. Ask which card your site needs. CSCS says holding its card is not a legal requirement, but most principal contractors and major house builders in the UK require it (CSCS). In Northern Ireland, the CSR card is accepted as equivalent to CSCS (CEF NI). In the Republic of Ireland, ask about Safe Pass (HSA).
  • Right-to-work checks.
  • References.
  • A replacement or a rebate if the hire leaves early.

On that last point, be careful with the words. A replacement means the agency searches again with no new fee. A rebate means some or all of the money comes back.

FH Recruitment says a rebate may be on a sliding scale. In the terms it describes, a "6 month" guarantee returned the whole fee only if the person left in the first six weeks. Read the small print.

Before you sign, ask:

  1. Is the fee a percentage or a flat amount?
  2. What is it calculated on: base pay or total pay?
  3. When is each payment due? Is any of it up front?
  4. Is the guarantee a rebate or a replacement? How long does it last?
  5. What do I have to do to claim it, and what voids it?
  6. Who checks tickets and cards, and who does the right-to-work check?
  7. Who calls the references, and do they speak to real site managers?
  8. What do I owe if I take on a worker permanently after a temporary spell?
  9. What is not included?

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

Also check the agency is legit. In Ireland, the Workplace Relations Commission says an employment agency must hold a licence (as reported by FH Recruitment). Ask to see it.

The cost of an empty role

The fee isn't the whole cost. An empty role costs you too.

The work slows down. The crew who are left do extra hours. You chase suppliers and cover on site. Your quotes take longer. Your own hours go up.

None of that is on the agency quote, but it's real money, and it grows with every week the role is open.

So compare two numbers. 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 not, it won't.

There is a free tool for this, and it works in pounds. Run the free hiring cost check and use your own numbers. You can also try the free hiring scorecard.

Free report: 7 Hiring Mistakes

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

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

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

An agency can be worth it when:

  • The job is urgent and you can't wait.
  • The role is rare, like a specialist trade or a senior manager.
  • You have no time to run a search yourself.
  • It's a one-off hire.

An agency is usually not worth it when:

  • You hire the same trade again and again. You pay every time and learn nothing.
  • The role is common and plenty of people are looking.
  • You haven't written a clear brief. An agency can't fix a vague job.

If you hire often, those fees add up fast, and you pay to rent a skill you could learn. If you hire rarely, an agency can be a fair trade.

If you're wondering about CIS or PAYE for a worker, don't guess. Read GOV.UK's guidance on the Construction Industry Scheme or ask an accountant. In the Republic of Ireland, the equivalent is RCT, and Revenue has the details. This post isn't tax advice. For finding subcontractors, see how to find reliable subcontractors UK.

For more on spotting hiring mistakes, my free 7 Hiring Mistakes report is a good start. The Australian edition of this guide is construction recruitment agency fees Australia. It uses Australian dollars, but the questions to ask are the same.

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: £999 per hire for trades and labour. Larger roles are £2,250, £3,750 or £5,500, depending on the role. £375 is paid upfront.
  • What you get: a role brief, the adverts, 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 nine questions above on us too.

Or learn to run your own hiring

We mainly teach builders, contractors and subbies 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. The Construction Hiring System course, UK and Ireland edition, is £249. If you want an hour on your own hiring problem, the Hiring Fix Call is £149 and runs for 60 minutes.

If you'd like to talk it through first, book a free 15-minute discovery call.

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

General information only, not legal, tax or employment advice. Fees, rules and card schemes change. Figures are what the named firms and bodies say, and the examples are made up. Check CIS, PAYE, RCT and right-to-work rules with GOV.UK, Revenue or an adviser.

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, UK and Ireland edition teaches the full method.

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

FAQ

How much do recruitment agencies charge in Ireland?

Irish agencies publish fee guides, and rates vary. Recruitroo and Talenthub both quote 15% to 25% for contingency fees. FH Recruitment says it found no industry benchmark. Get each agency's terms in writing. Ask what the fee covers and how long any replacement lasts.

Do construction agencies charge a percentage or a flat fee?

Both exist. Permanent hires are often charged as a percentage of salary, so the fee grows with pay. Some firms charge a flat fee per hire. Temporary workers are billed at an hourly or daily rate. Ask which one you are being offered, and why.

What should a recruitment agency fee include?

It should cover the advert, finding people, screening, interviews and a shortlist. Ask about ticket and card checks, right-to-work checks and references. Ask what happens if the hire leaves early. Get all of the answers in writing before you sign anything with an agency.

Is the cheapest construction agency the best choice?

Not always. A low fee can mean less searching, fewer checks or a short replacement period. Compare what is included, not only the number. Ask how they find people, who calls the references, and what happens if the person leaves early.

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