Contingency vs flat-fee recruitment: which is cheaper for hiring developers?
When you pay to hire a developer, the pricing model matters as much as the headline rate. The two you'll most often meet are contingency (a percentage of the hire's first-year salary) and flat-fee (a fixed or capped amount). They can produce very different invoices for the exact same hire.
Here's how they compare on cost, incentives and risk — with the actual numbers for a typical tech role.
How each model charges
Contingency recruitment charges a percentage of the candidate's first-year base salary, typically 15–25% for tech roles. Flat-fee (and percentage-capped) services charge a fixed amount, or a lower percentage that doesn't climb with pay — you pay the same to fill a role whether the salary is £50k or £90k.
The difference is entirely structural: contingency ties the price to the hire's salary; flat-fee ties it to the job of filling the role. Since finding a £90k engineer isn't 80% more work than finding a £50k one, that's where the models diverge.
The numbers on a typical hire
On a £70,000 developer, a 20% contingency fee is £14,000. A flat 10%-capped model is £7,000 — half the cost for the same outcome. On a £90,000 senior hire the gap widens: £18,000 at 20% versus £9,000 at 10%. The higher the salary, the more a percentage model costs you relative to a capped one.
For a company making several hires a year, that difference compounds into real money — often the price of another headcount. It's the single biggest reason capped and flat-fee models exist.
The incentive difference
Percentage fees quietly reward two things you might not want: higher salaries (a bigger offer means a bigger fee) and speed over fit (contingency only pays if that recruiter's CV wins the race). Neither is malicious, but both nudge the process away from your interests.
A flat or capped fee removes the salary-inflation incentive entirely and, when it's success-only, still only pays on a hire — so you keep the 'no win, no fee' safety without the percentage escalator.
Risk and when you pay
Both models are usually success-only for permanent roles: you pay on a hire, not up front (retained search is the exception — see how much recruitment agencies charge). What matters is the rebate clause — if the hire leaves early, how much do you get back, and over what window? Read that carefully whichever model you choose.
Flat-fee doesn't mean higher risk; it just changes the size of the bill, not when it lands. A good flat-fee service should still offer a replacement or rebate if a placement doesn't stick.
Where contingency still makes sense
Contingency (and retained) recruitment still earns its fee for very senior, niche or confidential roles where you genuinely need active headhunting — someone working the phones to reach people who aren't looking and won't be found in any pool. If that's the work you're buying, the percentage can be worth it.
For the everyday run of mid-to-senior engineering hires, though, a flat or capped fee usually gives you the same access for roughly half the cost. Get Me A Techie is free to post and browse and charges a flat 10% only on a hire — see pricing; founding companies pay 5% on their first (details).
Frequently asked questions
Is flat-fee recruitment cheaper than contingency?
Usually, yes — especially for higher salaries. A flat or capped fee doesn't scale with pay, so on a £70k hire a 10% cap (£7k) is half a 20% contingency fee (£14k), and the gap grows with salary.
Does a flat fee mean lower-quality candidates?
No. The pricing model doesn't determine quality — a vetted flat-fee pool gives you the same calibre of candidate without the percentage escalator. Quality comes from the sourcing and screening, not the fee structure.
What's a reasonable flat recruitment fee for a developer?
Capped models commonly land around 10% of first-year salary or a fixed few-thousand-pound fee, versus 15–25% for contingency. On a typical tech hire that's roughly half the cost.
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