On an 18% fee, a first finance hire on an illustrative A$235,200 package costs A$42,336, and a first CFO on A$336,000 costs A$60,480. The rate matters less than what it buys: a recruiter with a reason to find the person who is not looking, and a guarantee if it does not work out.
What recruitment agencies charge, by fee model
There are four common ways a recruitment agency charges. A percentage of the package paid on placement, a percentage paid in stages under a retained search, a flat fee per hire, or a margin built into the hourly or daily rate for contract and temp staff. The percentage usually applies to the first-year package, so the same rate costs far more on a senior hire than a junior one.
| How it is charged | When you pay | |
|---|---|---|
| Contingent | A percentage of the hire's first-year package, paid only if the agency's candidate is hired. | Once, when the candidate accepts or starts. |
| Retained | A percentage of the package, to one recruiter working the role exclusively. Story's is 18% of salary plus super. | In stages across the search. Story's is in thirds: terms agreed, shortlist and first interviews, contract signing. |
| Flat fee | A fixed dollar amount per hire, whatever the salary. | Set by the agreement, often on placement. |
| Contract or temp | An hourly or daily rate covering the worker's pay, on-costs and the agency's margin. | On each timesheet or invoice cycle while they work. |
At the senior level I work at, fees are larger in dollars because the packages are larger. And for a senior finance search, I consider 18% pretty standard for that level, if anything probably below average.
I learned how much there is to understand about fees the hard way. In a roleplay client meeting while interviewing at one of the biggest recruiters in the world, I didn't really get the concept of fees and kept pitching 30%. They kept telling me they couldn't do 30%, I got frazzled, and I didn't get the job.
Flat fees and contract margins
A flat fee is a fixed price per hire, agreed up front, whatever the final salary. It suits high-volume or standard roles where the work per hire is predictable. Contract and temp staff work differently: the agency employs or engages the person and bills you an hourly or daily rate that covers their pay, on-costs and the agency's margin. If you later want to make that person permanent, check whether your agreement carries a conversion fee.
For the two seats I place, the first finance hire and the first CFO, the right person is usually employed and not looking, which is why I run them as retained searches rather than on a flat or per-hour basis.
Retained vs contingent fees, in short
A contingent agency is paid only if its candidate is hired, and the role is often briefed to several agencies at once. A retained recruiter works the role exclusively and is paid in stages as the search progresses. My searches are typically not fee-on-placement. As a sole operator I prioritise work where I can commit to a proper process, because sending CVs on an ad hoc role often ends with the founder hiring someone who came through without a fee. I set out the full comparison in retained vs contingent search for a first CFO, so I won't repeat it here.
When the recruitment fee is due
A contingent fee is usually invoiced once the candidate accepts or starts, on the payment terms in the agency's contract. A retained fee is split into instalments across the search. Read the terms for what triggers each payment, not just the percentage.
On my searches the fee is paid in thirds: one third when terms are agreed and the search starts, one third when I present the shortlist and first interviews are booked, and the final third at contract signing. Paying in stages keeps both of us on the same timeline. If you want to see what happens between those three points, I walk through how a retained finance executive search runs.
Replacement guarantees: what happens if the hire leaves
A replacement guarantee (sometimes called a rebate or free replacement period) means the agency finds a new candidate at no extra fee if the hire leaves or is let go within a set period. Some agencies refund part of the fee instead. The length of the period and the exclusions are where agency terms differ most.
In my experience three months is probably the market standard. I offer six months, because my placement retention is strong: 85% of my placements are still in the seat two years later, so six months is not much of a risk for me. If anything goes wrong in that window, whether the hire does not like the role or the business does not like the hire, I do the search again for free. A guarantee only protects the fee, though. The true cost of a bad hire in a startup goes well beyond salary: time, attention, momentum and morale, and usually another three months before the underlying problem gets solved.
Are recruitment fees negotiable?
Usually, yes, within limits. The rate, the payment stages, the guarantee period and whether one fee covers more than one role can all be discussed. What you trade away in a negotiation tends to come out of the process: fewer hours, a narrower search, or a recruiter whose attention is on a better-paid brief.
Watch for dated offers too. I have run a discount for a deposit paid before 30 June, for clients with budget to commit before the end of the financial year. Offers like that are promotions with an end date, not standing terms, so ask what the rate is after it closes.
The other thing worth knowing is where fees add up quietly. A business that turns over several roles and runs every one of them through a large generalist firm is likely paying some hefty recruitment fees in total.
Cheaper alternatives: in-house hiring and your own network
The alternatives to an agency are hiring in-house, through your own team, ads and network, or a mix where you run your own process alongside a recruiter. Each removes or reduces the fee and moves the sourcing and screening work onto you.
If you already have candidates in your process you are comfortable with, you will probably go ahead without paying a fee. It comes down to the quality of people a paid search brings through against taking a slight haircut on quality to avoid a fee. For a first finance hire that haircut matters: in a 10-person company, one bad hire is 10% of your workforce, and the first finance hire can be critical to the next stage of growth.
Sometimes the cheapest answer is not to run a full-time search at all. When a founder came to me wanting a CFO they did not yet need, I could have run that search: a bigger fee and an easier brief. But they would have paid a premium for someone underused, so I gave them a free referral to a few fractional options instead. Early-stage businesses often need only five to 10 hours a week, sometimes a month, and I refer fractional providers for free. If that is where you are, compare what a part-time CFO costs before you pay for a full-time search.
When the fractional model runs out: moving from a fractional CFO to a full-time hire.
What a first finance hire or first CFO search costs in A$
A percentage fee is the rate multiplied by the package it applies to. At Story that is 18% of total remuneration, meaning base salary plus super. Super guarantee is 12% of ordinary time earnings, per the ATO, so on an offer written as base plus super the arithmetic is: base times 1.12, times 0.18, divided into three payments. The CFO examples below assume 12% is paid on the full base. Compulsory super is capped above the ATO's maximum contribution base (A$270,830 for 2026-27), so if an offer pays only the compulsory amount, the package and the fee are a little lower.
The packages below are illustrative, set inside the ranges on my salary guides, not quotes for any real role. For a first finance hire I use A$210,000 base, the middle of the A$200,000 to A$220,000 sweet spot I see for a head of finance salary in Australia. For a first CFO I use A$300,000 at Series A and A$350,000 at Series B, both inside the stage bands for CFO salary in Australia.
- First finance hire: A$210,000 + A$25,200 super = A$235,200. 18% of A$235,200 = A$42,336, or three payments of A$14,112.
- First CFO, Series A: A$300,000 + A$36,000 super = A$336,000. 18% of A$336,000 = A$60,480, or three payments of A$20,160.
- First CFO, Series B: A$350,000 + A$42,000 super = A$392,000. 18% of A$392,000 = A$70,560, or three payments of A$23,520.
If the final offer has a different super amount or base, the fee moves with it, so budget from the package you expect to sign, not the advertised range. Senior fees are larger in dollars because the packages are larger, which is also why the guarantee and the quality of the shortlist matter more at this level than the last percentage point.
I run two searches only: the first finance hire, at head of finance or financial controller level from late seed to Series A, and the first CFO, from Series A to Series C, for venture-backed Australian tech, fintech and deep tech companies. And the work does not stop when the fee is paid. I follow up with both sides long after the placement, because the goal from day one is the right person, not just the first person.
Budget the time as well as the fee: how long a CFO search takes in Australia.
Common questions
How much do recruitment agencies charge in Australia?
Most charge a percentage of the hire's first-year package, paid on placement (contingent) or in stages (retained); some charge a flat fee, and contract staff are billed at an hourly or daily rate that includes the agency's margin. Story Recruitment charges 18% of total remuneration (salary plus super), paid in thirds, with a six-month replacement guarantee.
How much does it cost to recruit a first CFO in Australia?
On an 18% fee, an illustrative first CFO package of A$300,000 base plus 12% super (A$336,000) gives a fee of A$60,480, paid as three instalments of A$20,160. The real figure depends on the package agreed in the offer.
When is a recruitment fee paid?
A contingent fee is usually invoiced when the candidate accepts or starts. A retained fee is paid in stages; Story Recruitment's is paid in thirds, when terms are agreed, when the shortlist is presented and first interviews are booked, and at contract signing.
What is a replacement guarantee in recruitment?
It means the agency finds a replacement at no extra fee if the hire leaves or is let go within a set period. In my experience three months is common in the market; I offer six months.
Are recruitment agency fees negotiable?
Usually, within limits. The rate, the payment stages, the guarantee and whether one fee covers more than one hire can all be discussed, but a lower fee tends to buy less of the recruiter's time and a narrower search.
These guides set out how we see it, drawn from the searches we run and the finance leaders we work with. They are general information about the market, not financial, accounting or legal advice, and they are no substitute for advice on your own circumstances.