F17 Recruitment
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Just a few quick details so we know who we're speaking to.
A straightforward breakdown of what UK recruitment agencies actually charge for temporary and permanent placements—across warehousing, logistics, manufacturing, driving, and more.
There are two main ways recruitment agencies charge, depending on whether you're hiring temporary or permanent staff.
Temporary staff: The agency employs the worker and charges you an hourly or daily rate. That rate includes the worker's pay, statutory employment costs (National Insurance, holiday pay, pension), and the agency's margin. You pay per hour worked.
Permanent staff: The agency finds and places a candidate into your business. You pay a one-off fee, usually calculated as a percentage of the candidate's annual salary. You only pay if you hire someone the agency introduced.
Most industrial and blue-collar recruitment is done on a contingency basis—meaning you only pay if the agency successfully fills the role. Retained recruitment, where you pay an upfront fee for dedicated search, is typically reserved for senior or executive positions and costs significantly more (25–50% of salary).
When you hire a temp through an agency, the hourly rate you pay is always higher than what the worker receives. This isn't all profit for the agency—most of it covers mandatory employment costs.
The statutory costs alone add roughly 30% on top of the worker's pay before the agency takes any margin.
So on a worker earning £12.21/hr, you'd pay around £19.64/hr. That looks like a 60% markup, but only £3.50 of it is agency profit. The rest is statutory costs you'd pay anyway if you hired the worker directly.
| Sector | Typical margin |
|---|---|
| Industrial (warehouse, production) | 15–22% |
| Driving (HGV, van, multi-drop) | 15–20% |
| Admin & office | 18–25% |
| Hospitality & catering | 16–24% |
| Healthcare & nursing | 25–40% |
| Specialist & technical | 25–40% |
The UK average gross margin across all temporary staffing is around 25%, but industrial roles sit lower at 15–22% because the talent pool is larger and competition between agencies is fierce.
Margin is the agency's profit as a percentage of the total charge rate. Markup is the percentage added to the cost base. A £3.50 margin on a £19.64 charge rate is an 18% margin—but a 21.7% markup on the £16.14 cost base. Agencies typically quote margin; employers sometimes confuse it with markup.
For permanent hires, agencies charge a one-off fee calculated as a percentage of the candidate's first-year annual salary. The percentage varies by role level, scarcity, and the agency itself.
| Role level | Typical fee | Notes |
|---|---|---|
| Entry-level operatives | 10–15% | High volume, large talent pool |
| Skilled trades (CNC, electrical) | 15–20% | Certification required, smaller pool |
| Supervisors & team leaders | 15–20% | Leadership + technical skills |
| Management | 20–25% | Significant sourcing effort |
| Senior management & directors | 25–30% | Executive search territory |
Some agencies offer flat-fee placements instead—typically £2,000–£5,000 regardless of salary. This can work out cheaper for lower-salary roles where a percentage fee would be small anyway.
Warehouse operatives are one of the most commonly recruited roles through agencies. Because the talent pool is relatively large, fees tend to sit at the lower end of the scale.
| Fee type | Typical range |
|---|---|
| Temp agency margin | 15–20% |
| Temp charge rate (on £12.21/hr pay) | £18–£20/hr |
| Permanent fee % | 10–15% |
| Average salary | £23,000–£26,000 |
| Permanent fee in £ | £2,300–£3,900 |
Warehouse roles include pickers, packers, goods-in/goods-out, inventory controllers, and general operatives. Night shift roles typically attract a £1–£3/hr premium on top, which increases the charge rate proportionally.
Forklift drivers command slightly higher rates than general warehouse operatives because they need valid licences (counterbalance, reach, or both). This narrows the available talent pool.
| Fee type | Typical range |
|---|---|
| Temp agency margin | 15–20% |
| Temp charge rate (on £13.50/hr pay) | £20–£22/hr |
| Permanent fee % | 12–15% |
| Average salary | £26,000–£31,000 |
| Permanent fee in £ | £3,120–£4,650 |
Fees are slightly higher for drivers with multiple licence types or experience operating in narrow-aisle environments. Demand tends to spike around peak seasons (Q4 especially), which can push temporary rates up further.
HGV drivers remain one of the harder-to-fill roles in the UK. The ongoing driver shortage means agencies can command higher fees, particularly for Class 1 (articulated) drivers.
| Role | Temp charge rate | Perm fee % | Average salary | Perm fee in £ |
|---|---|---|---|---|
| HGV Class 2 (rigid) | £22–£26/hr | 15–20% | £30,000–£36,000 | £4,500–£7,200 |
| HGV Class 1 (artic) | £24–£30/hr | 15–20% | £38,000–£50,000 | £5,700–£10,000 |
| ADR/tanker specialist | £28–£35/hr | 18–22% | £45,000–£60,000+ | £8,100–£13,200+ |
HGV recruitment fees are among the highest in the industrial sector. Post-Brexit supply constraints have eased somewhat, but demand remains strong—particularly for Class 1 drivers willing to do multi-drop or long-haul routes.
Need a driver at short notice? Expect to pay more. Same-day placements can carry a 20–40% premium on standard rates. Next-day is typically 10–25% extra. With 2–3 days' notice, the premium drops to 5–15%.
Manufacturing and production operatives sit at a similar level to warehouse roles, though skilled positions (machine setters, quality inspectors) can attract higher fees.
| Fee type | Typical range |
|---|---|
| Temp agency margin | 15–22% |
| Temp charge rate (on £12–£13/hr pay) | £18–£21/hr |
| Permanent fee % | 10–15% |
| Average salary | £22,000–£27,000 |
| Permanent fee in £ | £2,200–£4,050 |
Roles include production line operatives, assembly workers, quality inspectors, machine operators, and food production staff. The fee range widens for roles requiring specific certifications or clean-room experience.
CNC operators are a specialist role and attract higher fees. Programming ability, multi-axis experience, and familiarity with specific control systems (Fanuc, Siemens, Mazak) all push fees upward.
| Fee type | Typical range |
|---|---|
| Temp agency margin | 18–25% |
| Temp charge rate (on £14–£17/hr pay) | £22–£27/hr |
| Permanent fee % | 15–20% |
| Average salary | £29,000–£35,000 |
| Permanent fee in £ | £4,350–£7,000 |
CNC setter-operators (who can both set up and run machines) are in particularly high demand and sit at the top of the range. CNC programmers with CAD/CAM experience can command even higher salaries and corresponding fees.
Logistics covers a broad range of roles from coordinators and planners through to transport managers. Fees vary significantly depending on the seniority and specialism of the role.
| Role | Perm fee % | Average salary | Perm fee in £ |
|---|---|---|---|
| Logistics coordinator | 15–18% | £24,000–£27,000 | £3,600–£4,860 |
| Transport planner | 15–20% | £28,000–£35,000 | £4,200–£7,000 |
| Warehouse/logistics manager | 18–25% | £35,000–£45,000 | £6,300–£11,250 |
| Supply chain manager | 20–25% | £40,000–£55,000 | £8,000–£13,750 |
Not all agencies charge the same, and fees aren't fixed. Several factors influence what you'll actually pay:
The harder a role is to fill, the higher the fee. HGV Class 1 drivers and CNC programmers command premium rates because there are fewer qualified candidates. Warehouse operatives and production line workers, where the talent pool is large, attract lower fees.
Agencies will typically discount for volume. If you're hiring 10+ people, you can expect 10–15% off standard rates. Ongoing supply agreements with guaranteed volume can push margins down to 12–15% for industrial roles.
Working exclusively with one agency often results in lower fees. The agency takes on less risk (they're not competing against other agencies for the same role), so they can afford to discount. Non-exclusive, contingency arrangements carry higher fees because the agency may do the work and not get paid.
Short-notice placements cost more. If you need someone tomorrow, the agency is pulling from a smaller pool and prioritising your role over others. Planning ahead and giving agencies reasonable lead times will almost always save you money.
Rates vary by region. London and the South East carry a 25–30% premium over the national average. Cities like Manchester and Birmingham sit 10–15% above. Scotland, Wales, and parts of the North can be 5–10% below. East Anglia and the Cambridge corridor generally sit close to or slightly above the national average.
This depends on whether you're hiring temps or permanent staff, and what type of role you're filling.
A good agency margin for industrial and blue-collar temp roles is 15–20% of the charge rate. Anything below 15% is excellent and usually only achievable with high-volume, long-term agreements. Above 22% and you should be asking questions—unless you're in a specialist sector like healthcare or IT.
For entry-level and operative roles, 10–15% of annual salary is a fair fee. This is the standard range for warehouse, production, and general industrial roles. For skilled trades and supervisory positions, 15–20% is reasonable. Above 20% is typically management and executive territory.
Some agencies advertise low margins but charge separately for things like DBS checks, right-to-work verification, induction costs, or PPE. Make sure you're comparing like for like. A slightly higher margin that includes everything can work out cheaper than a low headline rate with add-ons.
If you want to take a temp worker onto your own payroll permanently, the agency will usually charge a transfer fee. This is regulated under the Conduct of Employment Agencies and Employment Businesses Regulations 2003.
Key points:
If a temp has been working for you for several months, the transfer fee is usually negotiable—the agency has already earned margin on the assignment.
For permanent placements, most agencies offer a rebate period. If the candidate leaves within a set timeframe, you get a partial refund.
| Period | Typical refund |
|---|---|
| Month 1 (weeks 1–4) | 100% refund |
| Month 2 (weeks 5–8) | 75% refund |
| Month 3 (weeks 9–13) | 50% refund |
| After month 3 | No refund |
Some agencies offer a free replacement instead of a cash refund—they'll find you another candidate at no additional fee if the first one doesn't work out within the first 4–8 weeks. Always check what's included before you sign the terms.
At F17 Recruitment, we keep our fees simple and competitive. We specialise in warehousing, logistics, manufacturing, and driving roles across East Anglia and the surrounding areas.
Our permanent placement fees sit at 10–15% of annual salary—at the lower end of the market for industrial recruitment. We can do this because our pre-screening process is efficient: we assess candidates before they reach you, which means less time wasted on both sides.
For temporary staffing, our margins are competitive with the industry standard for industrial roles. We're transparent about what's included in the charge rate—no hidden extras.
Every role is different. Chat with us and we'll give you a straight answer on what it would cost—no obligation, no pressure.
We'll give you a straight, no-nonsense quote based on what you're actually looking for. No hidden costs, no surprises.
Just a few quick details so we know who we're speaking to.