Hiring a permanent employee through a recruiting partner is a meaningful investment. Before a search begins, employers should understand how the fee is calculated, when it is owed, and what happens if a new hire leaves early. Clear terms protect the relationship, keep the search focused, and help leaders make better hiring decisions whether they run a growing for-profit company or a mission-minded organization.
How contingency permanent placement fees usually work
In a contingency search, the employer pays the recruiting firm only when it hires a candidate the firm presented. The fee is commonly calculated as a percentage of the new employee’s first-year base salary. Because the fee is tied to a successful hire, the employer is not paying for activity alone, and the firm has a direct reason to present candidates who match the role.
Before you sign an agreement, confirm:
The fee basis: Is it calculated on base salary only, or on total compensation such as bonuses and commissions?
The trigger: Is the fee owed on the offer date, the acceptance date, or the start date?
Candidate ownership: How long does a presented candidate remain attributed to the firm if the employer hires them later?
Payment terms: When is the invoice due, and how are disputes handled?
Exclusivity: Is the firm one of several sources, or does it have a defined period to run the search?
Kingdom Staffing’s permanent placement fee is 10% of the new hire’s first-year base salary. Keeping the basis simple makes it easy to budget for a search before it starts.
What a replacement guarantee is designed to do
A replacement guarantee gives the employer protection during the first stretch of employment. If the placed employee leaves or is let go within the guarantee period, the recruiting firm conducts a replacement search under the terms of the agreement rather than charging a new fee.
Kingdom Staffing includes a 90-day replacement guarantee with permanent placements. Ninety days gives both the employer and the new hire time to experience real responsibilities, working relationships, and expectations.
Every guarantee is defined by its written terms, so review the details with any firm you consider. Useful questions include:
When does the guarantee period begin?
Does it apply to both resignations and terminations?
Are there conditions, such as timely payment of the original fee or prompt notice of the departure?
How quickly will a replacement search begin?
Are there situations the guarantee does not cover, such as a role that changes significantly after the hire or a position that is eliminated?
How to get the most value from the guarantee
The best guarantee is the one an employer never has to use. A few practical steps make an early departure less likely:
Define the role before the search. Write a scorecard with the outcomes expected in the first 30, 60, and 90 days, the essential skills, and the work behaviors that matter most.
Evaluate every candidate consistently. Use structured interviews and job-related questions so decisions rest on evidence rather than impressions.
Be honest about the job. Share the real pace, schedule, travel, reporting line, and challenges. A realistic preview helps candidates decide well.
Plan onboarding before the start date. Prepare equipment, system access, introductions, training, and a first-week schedule.
Check in early and often. Short conversations at the end of week one, day 30, and day 60 surface concerns while they can still be addressed.
Keep hiring decisions fair and job-related
Organizations can describe their mission, values, and culture clearly. Selection decisions, however, should be based on qualifications and observable, job-related behaviors such as integrity, reliability, respect, accountability, and care for customers and teammates. Avoid questions or criteria related to protected characteristics, including religion, race, color, national origin, sex, age, disability, or genetic information. A consistent, lawful process protects candidates and employers alike, and it produces stronger long-term hires.
Partner on your next permanent hire
Kingdom Staffing helps for-profit companies and mission-minded organizations fill permanent roles with a clear process, a straightforward 10% fee, and a 90-day replacement guarantee. Our hub is in Louisville, and we support searches nationwide.
To start a search, call 502-965-0053 or email matt@dokingdomwork.com.