A percentage recruiting fee grows with the salary, while a flat fee stays the same. That makes the choice a matter of arithmetic: there is a salary below which the percentage costs less and above which the flat fee does. This article shows where that salary is, what it looks like at real salaries and what else to compare in a quote.
Quick answer
The break-even salary is the flat fee divided by the percentage rate. At a 20% fee, a flat $9,900 is cheaper for any US salary above $49,500, and a flat $3,500 is cheaper above $14,000 at a 25% fee. Below those salaries the percentage fee costs less.
Key takeaways
- At a 20% fee on a $100,000 salary, a percentage recruiter costs $20,000 against a flat $9,900, a difference of $10,100.
- The flat fee does not change with the salary you offer. The percentage fee moves with every raise in the offer.
- The fee is only one line of a quote. Compare when you pay, how long the guarantee runs and what it excludes.
- Direct-hire fees typically run 15% to 25% of first-year salary, and 20% is the most common rate. Agencies quote different rates, so test your own quote in the fee calculator.
How does a percentage recruiting fee work?
A percentage fee is a share of the hired person’s first-year salary, set in the recruiter’s terms. SPECTRAFORCE reports that staffing agencies typically charge a one-time fee of 15% to 25% for direct hire, and cites Staffing Industry Analysts research that 20% is the most common rate, reported by 42% of staffing firms. In Latin America, Genius publishes a direct-hire fee of 25% of the first-year salary. A 20% fee on a $100,000 hire is $20,000. The recruiter earns more when the salary is higher, even though the work of finding the person is similar.
A flat fee is one price per hire, set in advance. Flat Fee Direct Hire charges $3,500 per Latin America hire and $9,900 per US hire, for any full-time role up to Director level.
Where is the break-even between a flat fee and a percentage?
Divide the flat fee by the percentage rate. The result is the salary where both cost the same. Above it, the flat fee wins. Below it, the percentage wins.
| Percentage fee | Break-even vs the US flat fee | Break-even vs the Latin America flat fee |
|---|---|---|
| 15% | $66,000 | about $23,300 |
| 20% | $49,500 | $17,500 |
| 25% | $39,600 | $14,000 |
The 20% row is the default for US roles in the fee calculator, and the 25% row is its default for Latin America roles. A hire paid less than the break-even is cheaper on a percentage. That is worth knowing before you choose.
What does the difference look like at real salaries?
Take a 20% percentage fee against the US flat fee of $9,900:
| First-year salary | 20% fee | Flat fee | Flat fee saves |
|---|---|---|---|
| $60,000 | $12,000 | $9,900 | $2,100 |
| $80,000 | $16,000 | $9,900 | $6,100 |
| $100,000 | $20,000 | $9,900 | $10,100 |
| $150,000 | $30,000 | $9,900 | $20,100 |
The gap widens with every extra $10,000 of salary, because the percentage fee grows by $2,000 and the flat fee stays where it is.
What else should you compare besides the headline fee?
Two quotes with the same number can differ a lot in the terms around it. Ask each recruiter:
- When is it invoiced? Ours is on the hire's start date, on net 15 terms. For a Latin America hire $0 is due up front. For a US hire $500 is due when the search starts, non-refundable and part of the fee.
- How long is the replacement guarantee, and when does it start? Ours is 180 days, counted from the hire's start date.
- What does the guarantee exclude? Ours excludes layoffs, restructuring or role elimination; a material change to the role's duties or pay; an unpaid invoice.
- How fast do candidates arrive? Ours: 5 business days for Latin America and 10 business days for the US, from the kickoff call.
- What is out of scope? Ours: VP and C-suite searches.
When does a percentage fee still make sense?
When the salary is below the break-even, a percentage fee costs less than a flat one, and a lower-paid hire can fit that. If you hire in the middle and upper salary range, or you want to know the cost before you see a single candidate, the flat fee is the more predictable choice.
Frequently asked questions
Is a flat fee always cheaper than a percentage fee?
No. It is cheaper above the break-even salary, which is the flat fee divided by the percentage. At a 20% fee that is $49,500 for the US flat fee, and at 25% it is $14,000 for the Latin America flat fee.
Does the flat fee change with the salary I offer?
No. The fee stays the same whatever salary you offer.
Is there an upfront payment?
$0 for a Latin America hire. For a US hire, $500 is due when the search starts, non-refundable and part of the fee.
What does the replacement guarantee cover?
If the hire leaves, or is let go for performance, within 180 days of the start date, the search starts again at no fee. The exclusions are listed on the company fact sheet.
Sources & methodology
- SPECTRAFORCE — How Much Do Staffing Agencies Charge for Direct Hire? Cites Staffing Industry Analysts research (2025-05-14)
- Genius — Pricing, direct-hire fee of 25% of first-year salary (retrieved 2026-10-12)
- Flat Fee Direct Hire — Company fact sheet (last updated 2026-10-08)
- Flat Fee Direct Hire — Recruiting fee calculator
The percentage range comes from SPECTRAFORCE, which reports 15% to 25% as typical and 20% as the most common rate in Staffing Industry Analysts research; the study itself is not linked there, so we rely on SPECTRAFORCE’s account of it. The flat fees, payment terms, guarantee and timelines come from the company fact sheet. The salaries in the tables are examples, not market data. Every figure in the tables is the salary multiplied by the rate, or the flat fee divided by the rate, rounded to the nearest $100 where marked.
Figures last verified: 2026-10-12