RECREWD FIELD GUIDE · 8 MIN READ
Subscription vs contingency recruitment: compare the economics
A transparent framework for comparing fixed recruitment subscriptions with per-hire contingency fees.
- For
- Employers comparing external recruitment models
- Published
- Updated
SHORT ANSWER
The practical answer
Compare recruitment models using the same hiring scenario: expected hires, eligible salary basis, fee rate or subscription price, internal time, included work, refund or replacement terms and the cost of an unfilled role. A subscription gives cost predictability but may be poor value at low use; contingency aligns the agency fee with a hire but usually increases cost with salary and hiring volume.
Define each model precisely
A subscription is a fixed recurring price for an agreed service scope. The agreement may limit active roles, seats, sourcing work or assessments even when it uses “unlimited” language. Contingency recruitment normally charges when a hire is made, often as a percentage of an agreed salary basis.
Names are not enough. Compare the actual contract, service level, term, renewal, cancellation, exclusions and replacement or refund conditions.
Use one scenario
For a simple comparison, set the number of expected hires, average salary basis, contingency percentage and subscription cost. Contingency fee = hires × salary basis × fee percentage. Subscription fee = recurring price for the same comparison period. Add internal costs or extra services only when you can define them consistently.
These numbers show a scenario, not the probability of a hire or the quality of candidates. Use the free Recrewd calculator to preserve the assumptions.
Worked example
Assume two hires, an annual salary basis of €70,000, a 20% contingency fee and a €1,999 annual subscription. The simple external-fee comparison is €28,000 versus €1,999. The €26,001 difference is not automatically savings: the two services may provide different sourcing, assessment, guarantees, volume, speed or candidate access, and either could produce no hire.
The correct decision depends on expected usage and what the supplier can actually deliver. Request evidence for service claims and model low, expected and high hiring scenarios.
Decision checklist
Check the following before buying.
- What work and channels are included?
- Are active roles, users or hires limited?
- What triggers a fee and what salary basis applies?
- What happens when no suitable candidate is available?
- What are the renewal, cancellation, refund and replacement terms?
- Which taxes and optional assessment costs are excluded?
- How will candidate consent, privacy and complaints be handled?
Recrewd Business membership
Recrewd’s Business membership is €1,999 per year with no employer recruitment commission. Start with a role brief so Recrewd can confirm scope, market coverage and activation. Applicant numbers and hires depend on the role and market. Use the calculator for planning; the result is an estimate rather than a service quote.
PUT IT INTO PRACTICE
Worked comparison: fees, scope and uncertainty
These fictional supplier offers are arithmetic inputs, not market benchmarks or Recrewd prices. The exercise compares external fees over one year; it does not predict hires or establish that the services are equivalent.
Freeze the two example offers
Offer A: €6,000 for a one-year subscription covering the agreed service scope. Offer B: a 15% fee per completed hire using an €80,000 annual salary basis.
For this exercise only, assume no other external fees. Taxes, internal time, candidate assessment, replacement terms, role limits and service quality still need like-for-like review.
Low-use case: no completed hire
Subscription fee: €6,000. Contingency fee: 0 × €80,000 × 15% = €0 under the stated success-only assumption.
Neither figure tells you whether the role was filled through another route, whether either supplier did useful work or what the unfilled role cost the employer.
One-hire case
Subscription fee: €6,000. Contingency fee: 1 × €80,000 × 15% = €12,000. External-fee difference: €6,000.
That difference is not verified savings. The example has not equalized sourcing, screening, internal workload, speed, replacement protection or the chance of a suitable hire.
Three-hire case and arithmetic crossover
Subscription fee: €6,000. Contingency fee: 3 × €80,000 × 15% = €36,000. External-fee difference: €30,000.
The arithmetic crossover is €6,000 ÷ (€80,000 × 15%) = 0.5 hires. Because completed hires are whole numbers, the subscription has lower example external fees from one hire onward, assuming its scope and price still cover that usage. This is not a probability or a purchase recommendation.
Make the comparison genuinely comparable
Ask each supplier to state active-role limits, included work, response commitments, additional charges, term, cancellation, and what happens when no suitable candidate is found.
Add internal hours × an agreed hourly cost only when measured consistently for both routes. Keep unknowns blank and run sensitivity cases rather than treating them as zero.
Decision record
Record which assumptions change the preferred option, which claims need evidence and who approves the scope. A lower example fee cannot resolve a mismatch in service or delivery capacity.
Use the hiring-cost calculator to test your own assumptions, then compare them with the actual supplier terms. Recheck the model if the hiring plan, salary basis, fee trigger or included volume changes.
Make your own working copy
Download the plain-text template or open it below to copy into your preferred notes editor. Your working copy stays with you.
Download blank template (.txt)View and copy the blank template
Recrewd — Worked comparison: fees, scope and uncertainty Blank working template Use your own facts. Leave unknowns explicit. Do not include private or confidential material. Comparison period and intended roles: [Complete here] Offer A recurring fee and included scope: [Complete here] Offer B fee trigger, rate and salary basis: [Complete here] Low / expected / high completed-hire counts: [Complete here] External fees for each scenario: [Complete here] Role, user and volume limits: [Complete here] Internal work and comparable cost assumptions: [Complete here] Taxes and optional charges to confirm: [Complete here] No-hire, cancellation and replacement terms: [Complete here] Evidence for supplier delivery claims: [Complete here] Unknowns and sensitivity checks: [Complete here] Decision, approver and review date: [Complete here]
Put this into practice
Compare the external fees using your own salaries, hiring volume and supplier terms.
Sources and scope
This guide provides general educational information. It does not promise that a particular search, CV, introduction or hiring method will produce an interview or hire.