Why the Recruitment Fee Structure with High Percentage Charges Is Killing the Industry

Recruitment should be about building trust, but the traditional way most agencies charge for their services has done the opposite. The old model of percentage-based fees has created a culture that rewards speed, not quality, and commission, not care. It has damaged confidence in an industry that should be built on partnership and fairness. At Green Bee, we believe it is time to change that.

How percentage fees distort priorities

In the traditional model, agencies charge a percentage of the candidate’s starting salary. The higher the salary, the higher the fee. It sounds logical. In reality, it creates pressure that often harms both the client and the candidate.

When a recruiter earns more by pushing for higher pay, their focus can shift from finding the right fit to securing the biggest possible deal. It becomes a negotiation game instead of a people-focused service. That approach damages trust. Businesses begin to wonder whose interests their recruiter is really protecting.

It also puts unnecessary stress on candidates. They may feel like their worth is being used to increase someone else’s commission. This leads to awkward conversations, inflated offers, and sometimes placements that fail within months. Recruitment should never feel like a competition. It should feel like collaboration.

The percentage system encourages a cycle of speed over care. The faster the placement, the faster the payment. But when agencies rush, corners get cut. Candidates are not properly screened, clients are not fully understood, and the result is often poor matches that cost everyone more in the end.

The real cost to clients and candidates

When recruitment becomes a numbers game, businesses lose out on quality. A poorly matched hire can affect morale, productivity, and even customer relationships. The financial cost of replacing the wrong person is often far greater than any fee saving made by working with a low-value, high-speed agency.

For candidates, the experience can feel transactional and shallow. They might be pushed into roles that do not fit or pressured to accept offers that are not right for them. This creates a cycle of disappointment and instability that helps no one.

The damage goes further than individual placements. The reputation of the entire industry suffers. Many businesses now hesitate to work with agencies because they assume all recruiters operate in the same way. The few who do things properly must work harder to rebuild that trust.

Recruitment should be about partnership. Clients deserve transparency, fairness, and care. Candidates deserve respect and clarity. Neither should feel like a number on a spreadsheet or a means to an end.

Why fixed fees create fairness

At Green Bee, we use a fixed fee structure because it reflects the value of the work, not the size of the salary. Our clients know exactly what they will pay from the start, and our candidates know they are represented with honesty, not with an agenda.

A fixed fee allows us to focus entirely on quality. We can take the time to speak to every candidate, complete proper checks, and match people carefully to the right roles. It creates consistency, builds trust, and removes the awkwardness that percentage-based charging creates.

We also keep our overheads low so that our pricing remains fair. Recruitment should be accessible to businesses of all sizes, not something that feels inflated or out of reach. By charging fairly and working transparently, we aim to help more businesses grow without compromising standards.

The recruitment industry needs to move away from outdated models that reward the wrong behaviours. It needs to rebuild trust through openness, fairness, and professionalism. When fees are transparent and the focus is on quality rather than commission, everyone benefits the client, the candidate, and the recruiter too.