Startup Recruiting Guide
How to structure recruiter compensation and fees
By Arshnoor Kohli, Founder, Vektor
Last updated
Published · 6 min read
Direct answer
Structure agency fees as a percentage of first-year salary paid at start, typically 18 to 25% by level for startup contingency. Avoid large kickoff retainers for IC seats. For multi-role spikes, a Hiring Partner cadence can add operating rhythm without stacking three 30% agencies.
Placement fee ladders, Hiring Partner retainers vs contingency, and how to avoid misaligned incentives.
Clean contingency ladders
Publish a simple ladder: Junior 18%, Mid 20%, Senior 22%, Head/Director 25%. Ambiguity creates renegotiation at offer time.
Pay on start, not on accept, if you want cash aligned with employment reality. Document guarantee terms in writing.
| Level | Fee % | When paid |
|---|---|---|
| Junior | 18% | Candidate start |
| Mid | 20% | Candidate start |
| Senior | 22% | Candidate start |
| Head / Director | 25% | Candidate start |
Incentives that hurt startups
Percentage-only models without quality bars push volume over fit. Require scorecards, weekly updates, and a replacement window.
Stacking multiple high-fee agencies on the same req creates candidate collision and brand damage. One accountable owner beats three partial desks.
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