Know the types of agency
| Type | Best for | Typical approach |
|---|---|---|
| General recruitment agency | Common roles across functions | Database, job posts, referrals |
| Specialist (for example IT) | Technical or niche roles | Deep network and technical screening |
| Executive search | Senior and leadership roles | Direct approach, confidential, more intensive |
| Contract staffing | Fixed-term, project or peak needs | Candidates placed on the agency's payroll |
| Campus and bulk hiring | Fresh graduates and large volumes | College drives, assessments, batch onboarding |
How agency fees usually work
- Success fee: you pay only when a candidate you hire joins, often a share of the first-year pay. This is common for permanent roles.
- Retainer: an upfront or staged fee, more common in executive search.
- Fixed fee per hire: a set amount for each placement.
- Contract staffing: a monthly charge on top of the person's cost, covering payroll and compliance.
Whatever the model, get the terms in writing: when the fee is due, what happens if the candidate leaves early, and what is covered by a replacement guarantee. Candidates should never be asked to pay a fee to a genuine recruitment agency.
What to check before you sign
- Experience in your type of role and industry, with examples of recent placements.
- A clear process: how they source, screen, shortlist and report.
- Quality over volume: a small number of well-matched profiles beats a large pile.
- A replacement or refund policy if the hire leaves within an agreed period.
- Honest timelines, and a named recruiter who understands your business.
- How they treat candidate data and confidentiality.
- References from other employers.
Questions to ask
- How many similar roles have you filled in the past year, and how long did they take?
- How do you find candidates beyond job portals?
- How do you screen for skills, not just resumes?
- What exactly will you send me, and how often?
- What is your fee, and when is it payable?
- What is the replacement guarantee, and under what conditions?
- Will you work exclusively on this role, or alongside other agencies?
Red flags
- Charging candidates a registration or placement fee.
- Sending resumes in bulk without screening.
- Promising instant results for senior or specialist roles.
- Refusing to put fees and guarantees in writing.
- Sharing your confidential requirement or candidate details with others.
- No clear point of contact.
How to get the best result from any agency
- Give a clear job description with must-have and nice-to-have skills, salary range and location.
- Be available for quick feedback on shortlisted profiles.
- Share what you liked and rejected, so the next batch improves.
- Move quickly on good candidates: they have other options.
- Treat the agency as a partner and be honest about your process and timeline.
How MAG Resource Revolution can help
Our HR solutions cover permanent and contract staffing, IT and technical recruitment, campus and bulk hiring, executive search and payroll support. If you are hiring developers, see our guide to hiring a software team in India. Submit your requirement and we will explain how we would approach it.
Frequently asked questions
It depends on the role and model. Success fees are commonly a share of the first-year pay, while retainers and fixed fees are also used. Always get the fee, due date and guarantee in writing.
No. A genuine recruitment agency is paid by the employer. Anyone asking candidates for a fee should be treated with caution.
It depends on the role and market. Common roles can take a few weeks, while specialist or senior roles take longer, and candidate notice periods add time.
A promise to find another candidate, or refund part of the fee, if the hire leaves within an agreed period. Check the period and conditions.
For urgent or hard-to-fill roles it can help, but it can also cause duplicate profiles and confusion. Agree the approach clearly with each agency.