The three pricing models
Compare models before you compare numbers. Two quotes with the same percentage can buy very different levels of commitment.
Contingency recruitment
You pay only if a candidate the agency introduces joins, usually on the joining date and calculated on annual fixed CTC. It suits specialist and mid-level roles. The trade-off is that agencies paid only on success prioritise roles they can close quickly.
Retained (executive) search
For CFOs, finance heads and GCC site leaders, the fee is paid in stages: at the start, at shortlist and at joining. In return you get an exclusive, research-led search with a market map. See retained vs contingency search for when each fits.
Dedicated hiring and RPO
For several roles at once, agencies offer a dedicated recruiter, a project fee or a monthly retainer. These trade a lower per-hire cost for a longer commitment.
What percentage is typical in India?
There is no official rate card. These are the ranges most commonly quoted:
| Type of role | Common model | Commonly quoted fee |
|---|---|---|
| Junior and volume roles | Contingency or bulk pricing | Often around one month's salary (about 8.33% of annual CTC) or a flat fee |
| Mid-level specialist roles | Contingency | Commonly in the region of 8.33% to 15% of annual fixed CTC |
| Senior specialist and niche roles | Contingency or exclusive | Commonly 15% to 20% of annual fixed CTC |
| CXO and leadership roles | Retained search | Often 20% or more of annual CTC, paid in instalments |
Treat these as orientation, not benchmarks. What matters is what the fee includes.
What drives the price of a search
- Seniority. Senior roles take longer and carry a higher cost of a wrong hire.
- Scarcity. Niche profiles take more research to find.
- Confidentiality. Replacing an incumbent needs discreet, direct approaches.
- Exclusivity and volume. An exclusive mandate or several hires for one team can change the rate.
- Replacement terms. A longer guarantee carries more risk for the agency and is priced in.
Planning a finance or leadership hire and want the right model for it?
See how Stellaspire worksTerms to check before you sign
What the percentage is calculated on
Fixed CTC only, or total CTC including variable pay, joining bonuses and benefits. The difference is significant for senior roles.
Replacement guarantee
Confirm the length of the period, whether it covers resignations and terminations, and whether it is a replacement or a partial refund.
Payment schedule and GST
Contingency fees are due on joining; retained fees are split across milestones. Fees are generally quoted exclusive of GST.
Candidate ownership and cancellation
Check how long the agency is owed a fee for a candidate it introduced, and what happens to retained instalments if you cancel or fill the role internally.
How to compare two proposals side by side
| What to look at | Question to answer | Why it matters |
|---|---|---|
| Fee basis | Percentage, flat fee or monthly retainer? | Convert each to an expected cost for your role before comparing. |
| What counts as CTC | Fixed pay only, or variable pay and bonus too? | The same percentage on a wider base gives a higher fee. |
| Payment milestones | Due on joining, or split across the search? | Upfront instalments are committed even if the search does not close. |
| Replacement terms | How long, what is covered, replacement or refund? | This is your protection if the hire leaves early. |
| Exclusivity | Is the agency asking to work alone? | It can buy more effort, but limits your options. |
| Fee trigger | At offer acceptance or at joining? | Some candidates do not join after accepting. |
The cheapest search is the one that gets the right person in the role and keeps them there.
Red flags in a recruitment agreement
- A vague fee basis. Ask for the exact calculation in writing.
- Open-ended candidate ownership. A claim with no time limit leads to disputes.
- No replacement terms. If they are not spelled out, assume you will not get one.
- A fee due before joining, outside retained search.
- Any fee charged to candidates. A legitimate agency is paid by the hiring company.
Questions to ask before you sign
Frequently asked questions
Do candidates pay recruitment agencies in India?
No. Legitimate agencies are paid by the hiring company, never by candidates.
When is a recruitment fee paid?
Under contingency, when the candidate joins. Under retained search, in instalments at the start, at shortlist and at joining.
Is the fee calculated on CTC or fixed salary?
It depends on the agreement. Many agencies use annual fixed CTC; some use total CTC, so confirm the basis in writing.
How does Stellaspire charge?
Fees depend on the role, seniority, number of positions and engagement model. We share commercial and replacement terms in writing before a search begins.
Nikita AgrawalFounder & CEO, Stellaspire. Nikita leads finance, analytics and leadership searches for GCCs and growth companies. LinkedIn ↗(opens in a new tab)
Have a role in mind? Tell us the role and the city, and we will explain which fee model fits and put the terms in writing before we start.
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