Insights — Sales & Commercial Recruitment — 3 min read
Recruitment Subscription vs Traditional Recruitment Agency: Which Costs Less?
Which costs less depends on how often you hire. Here is how each model works, where the break-even sits and which employers each one suits.
In short
A traditional contingency agency usually costs less if you hire rarely, because you pay nothing until someone starts. A subscription or hybrid model usually costs less if you hire regularly, because the monthly fee is shared across several appointments and any success fee is lower. The deciding factors are how many hires you make in a year, their salaries and the percentage the traditional agency would charge.
Traditional agencies charge a percentage every time you hire. Subscription recruiters charge every month whether you hire or not. Hybrid models do a bit of both. Each can be the better deal — for the right employer.
This article sets out how the three models work, runs transparent worked examples and explains which type of business each one suits.
How traditional contingency recruitment works
You brief one or more agencies. They advertise, search their databases and send CVs. If you hire someone they introduced, you pay a percentage of that person’s first-year basic salary. There is no cost if nobody is hired, but each hire carries the full fee.
How subscription recruitment works
You pay a fixed monthly amount for an agreed recruitment service over a set term. Pure subscriptions have no per-hire fee; the scope is usually limited by the number of vacancies or the level of support included.
How hybrid subscription and success-fee models work
Hybrids combine a modest monthly fee with a reduced success fee on each placement. The recruiter is funded to work the vacancy properly, and still rewarded for outcomes. Evans Recruitment Partner works this way: £199 + VAT per month for 12 months, one active vacancy at a time, and 5% of first-year basic salary when Evans places a candidate.
Single hire vs repeat hiring: the economics
All figures are illustrative. They assume £40,000 roles and an illustrative 15% contingency fee. Your own comparison will depend on the fee you are actually quoted.
| Hires in 12 months | Contingency (illustrative 15%) | Recruitment Partner (£2,388 + 5%) |
|---|---|---|
| 0 | £0 | £2,388 + VAT |
| 1 | £6,000 + VAT | £4,388 + VAT |
| 2 | £12,000 + VAT | £6,388 + VAT |
| 3 | £18,000 + VAT | £8,388 + VAT |
Pros and cons
| Traditional contingency | Subscription / hybrid | |
|---|---|---|
| Cost if no hire | Nothing | Monthly fee still payable |
| Cost per hire | Full percentage every time | Lower or no success fee |
| Budget predictability | Lumpy | Predictable |
| Recruiter commitment | Can be diluted if several agencies compete | Usually a committed single partner |
| Flexibility | Engage per role | Fixed term, usually 12 months |
Which model suits which employer?
- Rare, one-off hires: traditional contingency is often simplest.
- Senior, confidential or strategic appointments: executive search.
- Regular hiring of mid-level commercial, operational, technical or professional roles: a hybrid such as Recruitment Partner.
- Many simultaneous vacancies: a separately scoped campaign rather than a one-vacancy subscription.
Conclusion
Neither model is automatically cheaper. Work out how many people you realistically expect to hire over the next year, apply the actual fees you have been quoted and compare the service behind each price. For a wider look at fee structures, read how much recruitment agencies charge in the UK, or see how recruitment as a service works.
Recruitment without the traditional agency fee shock.
Evans Recruitment Partner gives growing UK businesses ongoing permanent recruitment support for £199 + VAT per month, with a 5% success fee when Evans places a candidate. One active vacancy at a time, on a 12-month agreement.
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