Candidate profile cards beside a balance scale representing hiring value and recruitment costs

How are recruitment agency fees calculated?

A recruitment quote may use a percentage of the selected candidate’s annual compensation, a fixed fee per hire, or a fee for a defined search assignment. Ongoing recruitment support may be quoted as a monthly engagement. Start by asking which model applies to your requirement and exactly what is included. There is no single price that fits every role, hiring volume and level of search difficulty.

A simple example for your hiring budget

Suppose a proposal uses a 10% fee on an agreed annual compensation of ₹6,00,000. The placement fee would be ₹60,000 before any applicable taxes or separately agreed expenses. This is an illustration of the calculation, not Dhanvarsh’s rate or an industry benchmark. Ask which salary components form the fee base and whether the quote includes taxes before comparing proposals.

Compare the scope behind the number

Check whether the assignment includes role discovery, candidate sourcing, screening, interview coordination, offer follow-up and joining support. Ask who will manage the search and how often you will receive updates. A low headline fee is difficult to evaluate without knowing what screening happens and which parts of the process your own team must handle.

Questions to ask about payment and replacement

Ask when the invoice is raised, what event triggers payment and how long payment is due after that event. Discuss what happens if the selected candidate does not join or leaves shortly after joining. Request the replacement window, exclusions and any credit or refund conditions in writing. Do not assume every proposal offers the same protection.

Hiring in Mumbai or Navi Mumbai? Add these details

Share the workplace location, nearest station, shift timings, salary range, required experience and target joining date. Specify which skills are essential and which can be taught. These details help a recruitment partner assess the search realistically. For multiple openings, separate the requirements by role instead of treating every vacancy as the same assignment.

What should you send for an accurate quote?

Prepare a job description, number of openings, reporting line, interview stages and a named decision-maker. Ask for a written proposal that lists scope, fee calculation and commercial terms together. Dhanvarsh can discuss your hiring requirements and provide a scoped proposal; the final price depends on the agreed assignment.

Have a requirement to discuss?

Talk to Dhanvarsh