How to choose a recruiting agency
On this page
- Start with what kind of search you actually need
- The agency comparison scorecard
- Questions to ask on the intake or pitch call
- Read the fee agreement before you sign, not after
- A worked comparison
- Signs to walk away, even mid-search
- Working the relationship once you've chosen
- A checklist before you sign
- Questions people ask
Choose a recruiting agency by comparing four things side by side: their track record in your specific niche, how they source (not just how many resumes they send), the fee and guarantee terms in writing, and how they communicate during a search. A cheap fee from an agency with no bench in your niche costs more than a higher fee from one that has already placed people like the one you need.
Most hiring managers pick an agency the way they'd pick a vendor for anything else: a referral, a cold call that landed well, or whoever answers first. That works until the search runs long or the first placement doesn't work out. Below is a way to compare two or three agencies properly before you sign anything, and the specific questions to ask on the intake call.
Start with what kind of search you actually need
The agency type matters more than the agency name. A generalist staffing firm running high-volume contingency search for administrative or light industrial roles is a different business than a boutique retained search firm for a VP of Engineering, and neither is better in the abstract; they fit different roles.
- Contingency: the agency is paid only on a hire, usually a percentage of first-year salary. Lower risk to you, but the agency is often running several clients' roles at once and prioritizes by who's most likely to pay fastest.
- Retained: you pay a portion up front, the rest on milestones or placement. The agency commits real time to your search specifically, which matters for senior or hard-to-fill roles where a shallow effort won't find anyone.
- Exclusive contingency: contingency terms, but you agree not to use other agencies for a set period. Often gets you retained-level effort at a contingency fee, if the agency trusts the exclusivity will hold.
- Staffing / temp-to-hire: the worker is initially employed by the agency, useful for roles where you want to see the fit before converting to a direct hire.
Decide this before you talk to agencies. It changes what "good" looks like and what fee structure is normal to ask for. See how to negotiate recruitment fees for what's actually negotiable within each type.
The agency comparison scorecard
Score each agency you're considering on the same five criteria, right after the intake call, before the impression fades. Anchors below; adapt the weights to what matters most for your search.
| Criterion | 1 — Weak | 2 | 3 | 4 — Strong |
|---|---|---|---|---|
| Track record in this niche | No specific placements they can name in this role type or industry | A handful, vaguely described | Several named placements with role, level and rough timeframe | Multiple recent placements at this level, with references you can call |
| Sourcing method, not just volume | Can't describe how they'd find candidates beyond "our database" or job boards | Generic sourcing description | Specific channels for this role (communities, referral networks, direct outreach) named | Same, plus a rough sense of how many qualified people exist in that channel |
| Screening depth | Forwards resumes with no notes on what was actually verified | Light notes, mostly resume restated | A real screening call with evidence, not adjectives (see the submittal template for what this should look like) | Same, plus references or verification already started before submittal |
| Fee and guarantee terms | Vague or verbal only, no written agreement offered | Written but no guarantee period | Written fee and a stated guarantee period, standard for the role level | Same, plus willing to put specific concessions (exclusivity, faster feedback SLA) in writing |
| Communication during the search | No update cadence agreed; you have to chase for status | Vague cadence ("we'll keep you posted") | Specific cadence agreed (weekly call, written pipeline update) | Same, plus proactive flags when the search is off track, not just when it's going well |
Questions to ask on the intake or pitch call
Each has what a strong answer sounds like and what should give you pause.
| Question | Strong answer | Weak answer or red flag |
|---|---|---|
| How many roles like this one have you filled in the last year, and can I speak to a client? | A specific number, named or described roles, and a willingness to give a reference without hesitation | "Many" with no specifics, or reluctance to offer a reference |
| Walk me through how you'd source for this specific role. | Named channels, a rough sense of the talent pool size, and a plan that's specific to this role, not a generic pitch | "We have a big database" with nothing about this particular skill set or level |
| What do you screen for before you submit someone to me? | A described process: must-haves checked, compensation aligned, notice period confirmed, references started or planned | "We make sure they're qualified" with no specifics on how |
| What's your average time from intake to first submittal, and to offer accepted, for a role like this? | A specific range with context for what makes it faster or slower | No number, or a number with no context that turns out to be an outlier |
| What happens if the hire doesn't work out in the first 90 days? | A written guarantee: replacement, partial refund, or credit, stated plainly | "We'll figure it out" or a guarantee that only exists verbally |
| Who exactly will be working my search: is it you, or is it handed off to a junior recruiter? | A clear answer naming who does the work and their experience level | Evasive about who actually sources and screens once the contract is signed |
Read the fee agreement before you sign, not after
The percentage is the number everyone negotiates over and the one that matters least on its own. Four other terms decide whether the agreement protects you when something goes wrong.
- When the fee is earned. On acceptance, on start date, or split across both. This determines whether you owe money if an offer falls through before the person starts.
- The guarantee trigger and remedy. What counts as a failed placement (resignation, termination, either), the window it applies in, and whether the remedy is a free replacement or a prorated refund.
- Exclusivity, if any. Whether you've agreed not to use other agencies or hire someone the agency didn't source, and for how long.
- Fee if you hire someone the agency introduced, later, through another channel. A common dispute: a candidate the agency submitted six months ago applies directly later and you hire them without the agency involved. Most agreements cover this with an introduction period; check yours does.
A full breakdown of these clauses, with wording, is in the placement fee agreement template. Read it even if the agency provides their own agreement, so you know what you're comparing it against.
A worked comparison
Invented, to show the scorecard in use. A hiring manager is choosing between two agencies for a senior finance role.
Agency A (boutique finance search): named three controller and FP&A placements in the last year at comparable companies, offered a reference on the spot, described a specific sourcing plan through two industry communities, quoted 18% with a 90-day guarantee in writing, and proposed a weekly 15-minute update call.
Agency B (generalist staffing firm): described "a large network across finance and accounting," could not name a comparable recent placement, quoted 15%, guarantee unclear until asked twice, no specific update cadence offered.
Scores: Agency A averages 3.6 across the five criteria; Agency B averages 1.8. The three-point fee difference is smaller than the gap in track record and process, and a search that runs an extra month costs more than 3% of one year's salary in lost productivity from the empty seat.
Signs to walk away, even mid-search
- Every candidate submitted looks like a copy of the job description with a different name on top, and none has the specific evidence a real screen would surface.
- The agency pushes you to move fast on a candidate without giving you time to verify claims yourself.
- References or verification steps you were told happened turn out not to have, when you check.
- Communication goes quiet for more than a week with no explanation, more than once.
- The agency resists putting a guarantee or fee change in writing after verbally agreeing to it.
Working the relationship once you've chosen
A good agency does better work when the client side is good too. Give a real intake: must-haves ranked, not a wish list; a realistic compensation range; and a commitment to feedback within a set number of business days on every candidate submitted. Agencies deprioritize clients who sit on submittals for two weeks, and reasonably so; slow feedback is the single most common complaint agencies raise about hiring managers. See intake meeting questions for what a thorough intake actually covers.
If you use more than one agency because the role is hard to fill, tell each of them. It changes how much effort they'll reasonably put in, and it avoids the double-submission disputes that damage the relationship and sometimes trigger a fee argument over who gets credit for the hire.
A checklist before you sign
- You've decided whether this search needs contingency, retained, or exclusive terms.
- You've scored at least two agencies on the five criteria above.
- You've asked for and checked at least one reference from a recent, comparable placement.
- The fee agreement is in writing, including the guarantee trigger, remedy and introduction period.
- You know who will actually work the search, not just who pitched you.
- You've agreed on a feedback and communication cadence before the search starts.
- If you're using more than one agency, each one knows.
Once candidates start arriving, a fast, evidence-based read on each submittal keeps the agency relationship working: Interview Signal turns each screen or interview into a scorecard with the candidate's own quotes checked against the transcript, so feedback to the agency is specific instead of "didn't feel right," which is the vaguest possible reason for an agency to hear no.
Questions people ask
Is a lower contingency fee percentage a good sign?
Not on its own. A lower fee with a shallow candidate pool costs you more in time-to-fill and mis-hires than a higher fee that lands the right person fast. Compare the whole package: fee, guarantee, exclusivity terms and the agency's actual track record in your niche.
Should I use more than one agency for the same role?
Contingency search allows it by default unless you agree otherwise, but running several agencies on one role usually means less effort from each of them and a higher risk of double submissions. Retained or exclusive search with one agency you trust often fills faster.
How many candidates should a good agency submit for one role?
There's no fixed number worth citing as a rule; a smaller number of well-screened, well-matched candidates is a better signal than a high volume of resumes that all resemble the job description with different names on top.
What's a reasonable guarantee period?
It varies by role level and industry norm; 90 days is common for many professional roles, longer for executive search. Ask what the agency's standard guarantee is and get it in writing in the fee agreement rather than assuming it matches what a previous agency offered.