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What is the fill rate for a recruitment agency?

This article was written by our expert who is surveying the industry and constantly updating the business plan for a recruitment agency.

recruitment agency profitability

Understanding fill rate is crucial when launching a recruitment agency because it directly measures how many job openings you successfully close compared to those assigned to you.

This metric determines your agency's revenue, reputation, and ability to secure future contracts with clients. If you want to dig deeper and learn more, you can download our business plan for a recruitment agency. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our recruitment agency financial forecast.

Summary

Fill rate measures the percentage of assigned job openings that your recruitment agency successfully fills with qualified candidates.

This metric is calculated by dividing the number of roles filled by the total roles assigned, then multiplying by 100, and it directly impacts your agency's profitability and client retention.

Aspect Key Details Impact on Recruitment Agency
Definition Percentage of assigned positions successfully filled with candidates who accept offers Core performance metric that determines agency revenue and client satisfaction
Calculation Formula (Number of roles filled ÷ Total roles assigned) × 100 Simple tracking enables quick performance assessment and operational adjustments
Industry Average 40% to 70% across recruitment sector in 2025 Provides benchmark for evaluating your agency's competitive positioning
Top Performer Range Above 80% for exclusive or retained assignments Signals premium service quality and justifies higher fees to clients
Measurement Period Monthly or quarterly for operational accuracy Allows rapid identification of problems and process improvements
Variation by Role Type Entry-level: 70%+, Executive roles: under 40% Helps set realistic expectations and pricing for different service tiers
Key Success Factors Client exclusivity, detailed role briefings, strong candidate pipelines, modern ATS technology Agencies focusing on these factors achieve significantly higher fill rates and profitability

Who wrote this content?

The Dojo Business Team

A team of financial experts, consultants, and writers
We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch their businesses. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the recruitment agency market.

How we created this content 🔎📝

At Dojo Business, we know the recruitment market inside out—we track trends and market dynamics every single day. But we don't just rely on reports and analysis. We talk daily with local experts—entrepreneurs, investors, and key industry players. These direct conversations give us real insights into what's actually happening in the market.
To create this content, we started with our own conversations and observations. But we didn't stop there. To make sure our numbers and data are rock-solid, we also dug into reputable, recognized sources that you'll find listed at the bottom of this article.
You'll also see custom infographics that capture and visualize key trends, making complex information easier to understand and more impactful. We hope you find them helpful! All other illustrations were created in-house and added by hand.
If you think we missed something or could have gone deeper on certain points, let us know—we'll get back to you within 24 hours.

What exactly is considered a filled role in the recruitment industry?

A filled role in the recruitment industry is any position where your agency successfully sources a qualified candidate who accepts the job offer from your client company.

The role is officially marked as filled when the candidate formally accepts the offer, though some recruitment agencies also track this milestone at the candidate's actual start date with the employer. This distinction matters because candidates can occasionally accept offers but then withdraw before their first day, which affects how you report your performance metrics to clients.

For your recruitment agency, a filled role represents completed work that generates revenue, typically through a placement fee calculated as a percentage of the candidate's first-year salary (usually 15% to 25% depending on your market and specialization). The completion of this process—from receiving the job brief to candidate acceptance—demonstrates your agency's value proposition and builds client trust for future assignments.

When starting your recruitment agency, you need to establish clear definitions with each client about what constitutes a filled role, including whether you count the role as filled at offer acceptance or first day, and what happens if a candidate leaves within a guarantee period (typically 30 to 90 days).

How is the fill rate calculated in practice, and what formula is used?

Fill rate is calculated by dividing the number of roles your recruitment agency successfully fills by the total number of roles assigned to you, then multiplying by 100 to get a percentage.

The formula is straightforward: Fill Rate (%) = (Number of roles filled ÷ Total roles assigned) × 100. For example, if your agency receives 42 job openings from various clients over a quarter and you successfully fill 33 of those positions, your fill rate is (33 ÷ 42) × 100 = 78.6%, which rounds to approximately 79%.

In practice, you need to define what counts as "assigned" to ensure accurate tracking—this typically includes all job orders you accept and actively work on, but excludes roles that clients withdraw before you begin sourcing or positions where the client never provided adequate job specifications. Some recruitment agencies track fill rates separately for different client types (retained versus contingency) or role categories (entry-level versus executive) to gain more granular insights into their performance.

You'll find detailed market insights in our recruitment agency business plan, updated every quarter.

Your recruitment agency should implement a reliable applicant tracking system (ATS) from day one to automate this calculation and provide real-time visibility into your fill rate performance across different clients, industries, and role types.

Over what period of time should fill rate be measured to ensure accuracy?

Fill rate should be measured monthly or quarterly to provide actionable insights that allow for rapid process improvements in your recruitment agency.

Monthly measurements give you the most responsive feedback loop, enabling you to quickly identify problems—such as a sudden drop in candidate quality or client responsiveness—and make immediate operational adjustments. Quarterly measurements smooth out short-term fluctuations and provide a more stable view of your agency's performance trends, which is particularly useful when reporting to stakeholders or comparing performance across different periods.

Annual measurements can help identify broader patterns and long-term trends in your recruitment agency's performance, but they are too slow for operational decision-making and can mask significant month-to-month variations that require immediate attention. For example, if your fill rate drops from 65% to 40% in one month due to a shift in client behavior or market conditions, you need to know immediately rather than waiting until year-end to discover the problem.

When launching your recruitment agency, establish a consistent measurement cadence from the beginning—track fill rates monthly for internal operations and report quarterly to clients or investors for strategic assessment. This dual approach ensures you maintain operational agility while providing stable, reliable performance data to external stakeholders.

What is the average fill rate across the recruitment industry today?

The average fill rate across the recruitment industry in 2025 ranges from 40% to 70%, with significant variation based on assignment structure and agency specialization.

Top-performing recruitment agencies regularly achieve fill rates above 80%, particularly when working on exclusive or retained assignments where client commitment is higher and competition from other agencies is eliminated. These exceptional results typically come from boutique agencies with deep specialization in niche markets or from agencies that have cultivated strong, long-term client relationships with exclusive agreements.

Recruitment agencies operating primarily on contingency arrangements (where multiple agencies compete for the same role and only the successful agency gets paid) typically see lower fill rates in the 40% to 55% range because of the competitive dynamics and lower client investment in the process. Geographic location also influences these averages, with agencies in major metropolitan areas often experiencing more competitive markets and lower fill rates than those in specialized regional markets with less competition.

For your new recruitment agency, aiming for a 60% fill rate in your first year is a realistic target, with the expectation of improving to 70% or higher as you refine your processes, build stronger client relationships, and potentially transition some clients to exclusive or retained arrangements.

business plan staffing agency

How do fill rates vary depending on job seniority or specialization?

Fill rates vary significantly by seniority level, with entry-level positions achieving fill rates of 70% or higher while senior executive roles often fall below 40%.

Role Level Typical Fill Rate Key Factors Affecting Fill Rate
Entry-Level & Clerical 70% to 85% Large candidate pool, lower skill requirements, faster hiring decisions, higher volume of applicants per role, less competitive market dynamics
Mid-Level Professional 55% to 70% Moderate candidate availability, specific skill matching required, longer evaluation processes, moderate competition from other employers
Manager & Specialist 45% to 60% Narrower talent pool, specialized skills and experience needed, extended interview processes, candidates often have multiple offers
Senior Manager 40% to 55% Limited candidate availability, high compensation expectations, cultural fit critical, longer decision cycles from both client and candidate
Executive & C-Suite 30% to 45% Very shallow talent pool, highly competitive market, extensive vetting process, candidates require significant relationship building and persuasion
Highly Technical Specialists 35% to 50% Scarce specialized skills, high demand across industries, candidates often passive and satisfied in current roles, premium compensation required
Contract & Temporary 65% to 80% More flexible candidate pool, shorter commitment period, faster placement cycle, lower barriers to candidate acceptance

For your recruitment agency, understanding these variations is essential for setting realistic expectations with clients, pricing your services appropriately across different role types, and allocating your time and resources effectively to maximize overall profitability.

What are the main reasons positions remain unfilled after being assigned to an agency?

Positions remain unfilled primarily due to skill mismatches between job requirements and available candidates, unattractive compensation packages, and poor role specifications from clients.

  • Skill mismatches and unrealistic requirements: Clients often create job descriptions that demand an impossible combination of skills, experience levels, or certifications that virtually no candidate possesses. For example, requiring 10 years of experience with a technology that has only existed for 5 years, or expecting senior-level expertise at junior-level compensation. Your recruitment agency needs to educate clients about realistic skill combinations and help them prioritize must-have versus nice-to-have qualifications.
  • Below-market compensation and benefits: When clients offer salaries 10% to 20% below market rates for the required skill level, qualified candidates simply choose other opportunities. This is particularly common when clients base their compensation on outdated market data or internal pay scales that haven't kept pace with talent market inflation. Your agency should provide current market salary data to clients during the job briefing stage to align expectations.
  • Location challenges and relocation resistance: Roles requiring relocation to less desirable locations or those without remote work options face significantly higher rejection rates, especially in the post-pandemic environment where candidates prioritize flexibility. Approximately 65% to 75% of professionals now expect at least hybrid work arrangements, so roles requiring full-time office presence in less attractive locations have dramatically smaller candidate pools.
  • Vague or misleading job descriptions: When clients provide incomplete or inaccurate information about the role, responsibilities, team structure, or growth opportunities, candidates lose interest during the interview process or decline offers after learning the reality. Your recruitment agency should invest time upfront to create detailed, accurate job specifications through thorough client consultation.
  • Shifting requirements and poor client communication: Clients who continuously change job specifications, delay interview scheduling, or fail to provide timely feedback create candidate frustration and drop-off. When your agency presents qualified candidates but the client takes three weeks to schedule a first interview, those candidates often accept other offers in the interim.
  • Company reputation and employer brand issues: Positions at companies with poor Glassdoor ratings, negative press coverage, or known toxic work cultures face candidate rejection regardless of compensation or role quality. Your recruitment agency should research client company reputations before accepting assignments and potentially decline to represent clients with severe reputation problems.
  • Lengthy or poorly designed interview processes: Clients requiring six or more interview rounds, extensive unpaid project work, or poorly coordinated interview schedules lose candidates to competitors with more efficient processes. The average candidate will tolerate three to four interview stages before frustration sets in and they withdraw from consideration.

This is one of the strategies explained in our recruitment agency business plan.

How quickly do agencies typically fill roles, and how does time-to-fill affect fill rate?

Time-to-fill varies from 2 to 4 weeks for entry-level positions up to 3 to 4 months for executive roles, with longer timeframes typically resulting in lower fill rates for recruitment agencies.

Position Type Average Time-to-Fill Impact on Fill Rate
Entry-Level Positions 14 to 28 days Shorter timeframes maintain candidate interest and reduce drop-off, supporting higher fill rates of 70%+ due to simpler evaluation processes and less competition
Mid-Level Professional 30 to 45 days Moderate timeframes still manageable for candidate engagement, though extended processes begin to increase risk of candidates accepting competing offers
Specialist & Manager 45 to 60 days Longer timeframes significantly increase candidate drop-off as professionals receive multiple offers during extended evaluation periods, reducing fill rates to 45% to 60%
Senior Manager 60 to 90 days Extended timeframes require sophisticated candidate relationship management to maintain interest and prevent loss to competitors
Executive & C-Suite 90 to 120+ days Very long timeframes necessitate retained search models with milestone payments to justify agency investment; contingency placements at this level rarely succeed due to process length
Technical Specialists 45 to 75 days High-demand technical professionals receive constant recruitment approaches, making speed critical; delays beyond 60 days dramatically increase candidate loss to competing offers
Contract & Temporary 7 to 14 days Very short timeframes align with candidate expectations for immediate placement, supporting high fill rates of 65% to 80% in the temporary staffing segment

For your recruitment agency, reducing time-to-fill requires optimizing every stage of your process—from initial candidate sourcing and screening to coordinating efficient interview schedules and facilitating quick client decision-making. Each additional week in the process statistically increases the likelihood of candidate drop-off by approximately 10% to 15%, making speed a critical competitive advantage.

business plan recruitment agency

What role does client commitment, such as exclusivity or retainer, play in improving fill rate?

Exclusive assignments and retained searches dramatically improve fill rates for recruitment agencies, often achieving 75% to 85% success rates compared to 40% to 55% for contingency arrangements.

Exclusive agreements eliminate competition from other recruitment agencies, allowing your agency to invest more time and resources per assignment without the risk of wasted effort if another agency makes the placement. This deeper investment enables more thorough candidate sourcing, better candidate preparation, and more strategic client consultation throughout the hiring process. When clients pay a retainer (typically one-third of the total fee upfront), they demonstrate genuine commitment to the search and are more likely to provide timely feedback, make faster decisions, and seriously consider the candidates you present.

Retained search models fundamentally change the economic equation for your recruitment agency by guaranteeing revenue even if the position is ultimately filled internally or put on hold. This payment structure—typically one-third upfront, one-third at shortlist delivery, and one-third upon placement—allows you to take on complex, long-duration searches for executive and specialized roles that would be financially impractical under contingency arrangements where you only get paid for successful placements.

Contingency arrangements create a race-to-the-bottom dynamic where multiple agencies submit candidates quickly with minimal screening, clients become overwhelmed with mediocre submissions, and the agency that succeeds is often the one that happened to have the right candidate in their database rather than the one providing the best service. For your new recruitment agency, working to transition your best clients from contingency to exclusive or retained arrangements should be a strategic priority, as these relationships generate higher fill rates, better profit margins, and more sustainable revenue streams.

How do candidate availability and market conditions influence fill rate outcomes?

Candidate availability and market conditions are among the most significant external factors affecting your recruitment agency's fill rate, with tight labor markets reducing fill rates by 15% to 25% compared to candidate-rich environments.

When unemployment is low (below 4%) and economic growth is strong, qualified candidates have multiple job options and higher expectations for compensation and work conditions, making them more selective about opportunities and more likely to decline offers or accept competing positions during your client's evaluation process. In these tight markets, your recruitment agency faces increased competition not just from other agencies but from internal recruiting teams at companies with strong employer brands and from candidates receiving unsolicited offers through LinkedIn and other professional networks.

Conversely, during economic downturns or in markets with higher unemployment (above 6%), your agency typically sees larger applicant pools, more responsive candidates, faster decision-making from candidates who feel urgency to secure employment, and higher acceptance rates for offers. However, these favorable conditions for fill rates often coincide with reduced hiring activity from clients, meaning the overall volume of assignments may decrease even as your fill rate percentage improves.

We cover this exact topic in the recruitment agency business plan.

Industry-specific market dynamics also matter significantly—technology recruitment during a boom period faces extreme candidate scarcity and lower fill rates (40% to 50%), while recruitment in declining industries may achieve higher fill rates (65% to 75%) due to abundant candidate availability but face challenges with client budget constraints and reduced hiring volumes. Your recruitment agency needs to develop realistic fill rate expectations based on current market conditions in your specific industries and geographies, adjusting your business model, pricing, and resource allocation accordingly.

What internal practices or metrics do top-performing agencies use to raise their fill rate?

Top-performing recruitment agencies achieve fill rates of 75% to 85% by implementing detailed role briefings, maintaining disciplined candidate quality standards, and tracking comprehensive process metrics beyond just fill rate.

  • Comprehensive client intake and role briefing: High-performing agencies invest 60 to 90 minutes in detailed intake calls with clients before accepting assignments, clarifying not just job specifications but also company culture, team dynamics, growth opportunities, and realistic candidate profiles. This upfront investment dramatically reduces wasted effort on misaligned candidates and sets realistic client expectations. Your recruitment agency should develop a standardized intake questionnaire covering at least 30 to 40 key dimensions of the role and organizational fit.
  • Disciplined candidate qualification and presentation: Top agencies present only 3 to 5 highly qualified candidates per role rather than submitting large volumes of mediocre candidates hoping something sticks. This focused approach requires more rigorous internal screening but results in higher client respect, faster decision-making, and better placement rates. Your agency should establish clear candidate qualification criteria and ensure every candidate meets at least 80% of stated requirements before presentation.
  • Proactive candidate relationship management: Leading agencies maintain regular contact with presented candidates throughout the client evaluation process, providing interview preparation, gathering feedback after each stage, managing expectations about timing and compensation, and proactively addressing concerns before they become deal-breakers. This hands-on approach reduces candidate drop-off by 25% to 35% compared to agencies that simply make introductions and wait for outcomes.
  • Strategic pipeline development: Top performers build candidate pipelines before receiving specific assignments, cultivating relationships with passive candidates in their specialization areas and maintaining databases of previously placed candidates for future opportunities. This proactive approach reduces time-to-fill by 30% to 40% and increases fill rates because you can quickly present qualified candidates while competitors are still beginning their search.
  • Comprehensive metrics tracking: High-performing agencies track not just fill rate but also time-to-fill, candidate-to-interview ratio (targeting 50% or higher), interview-to-offer ratio (targeting 40% or higher), offer acceptance rate (targeting 85% or higher), and client satisfaction scores. These detailed metrics reveal exactly where your recruitment process is breaking down and enable targeted improvements rather than generic efforts to "increase fill rate."
  • Regular client feedback loops and relationship management: Top agencies schedule formal quarterly business reviews with major clients to discuss performance trends, identify process improvements, and align on strategic hiring priorities. This relationship investment builds trust, often leads to exclusive or retained arrangements, and ensures your agency receives clear, actionable feedback rather than simply losing assignments without understanding why.
  • Specialized market expertise and thought leadership: Leading recruitment agencies develop deep expertise in specific industries or role types and share that expertise through market reports, salary surveys, and hiring trend analysis. This thought leadership positions your agency as a strategic partner rather than a commodity supplier, commanding premium fees and higher client commitment that translates directly to improved fill rates.

How do technology and sourcing tools impact an agency's ability to achieve higher fill rates?

Modern applicant tracking systems, AI-driven sourcing tools, and automated candidate engagement platforms can increase recruitment agency fill rates by 15% to 25% through improved efficiency and expanded candidate reach.

Applicant tracking systems (ATS) provide structured workflow management that ensures no candidates fall through cracks, automates follow-up communications, and tracks every interaction throughout the recruitment process. Quality ATS platforms designed for recruitment agencies (such as Bullhorn, Vincere, or Loxo) include features specifically valuable for improving fill rates: automated candidate nurturing sequences, interview scheduling integration, and comprehensive reporting that reveals process bottlenecks. Your recruitment agency should budget $100 to $200 per user per month for professional-grade ATS software from day one rather than trying to manage placements through spreadsheets or email.

AI-powered candidate sourcing tools (like SeekOut, HireEZ, or LinkedIn Recruiter) dramatically expand your candidate pool by automatically identifying passive candidates across multiple platforms, predicting candidate fit based on historical placement data, and personalizing outreach messages to improve response rates. These tools typically improve sourcing efficiency by 40% to 60%, allowing your recruiters to identify and contact 3 to 4 times more qualified candidates in the same time period, which directly translates to higher fill rates through increased top-of-funnel volume.

Automated screening and assessment platforms (such as HireVue, Pymetrics, or Criteria Corp) help your recruitment agency quickly evaluate candidate skills, cultural fit, and job-specific competencies, reducing time-to-shortlist by 30% to 50% while improving candidate quality through objective, data-driven assessment. This technology is particularly valuable for high-volume recruitment where manual screening of hundreds of applicants per role would be impractical.

Get expert guidance and actionable steps inside our recruitment agency business plan.

Your recruitment agency should view technology investment as essential infrastructure rather than optional expense—agencies that leverage comprehensive technology stacks typically achieve 20% to 30% higher fill rates than those relying primarily on manual processes, while also improving recruiter productivity by 35% to 50%, allowing the same team to handle significantly more assignments simultaneously.

business plan recruitment agency

What benchmarks should clients use to evaluate whether an agency's fill rate is strong or weak?

Clients should evaluate recruitment agency fill rates based on assignment structure and role complexity, with 60% to 70% considered strong for non-exclusive contingency work and 75% or higher expected for exclusive or retained searches.

Assignment Type Expected Fill Rate Performance Assessment
Contingency (Multiple Agencies) 40% to 55% Below 40% indicates poor agency performance or unrealistic job specifications; above 55% demonstrates strong competitive positioning and candidate quality
Preferred Vendor (Reduced Competition) 55% to 65% This range reflects improved dynamics from limited competition; performance below 50% suggests agency issues while above 65% indicates excellent execution
Exclusive Assignment (Single Agency) 70% to 80% Exclusive arrangements should deliver substantially higher fill rates; below 65% indicates serious performance problems or unrealistic client expectations
Retained Search (Upfront Fee) 75% to 90% Retained engagements with financial commitment should achieve very high fill rates; below 70% suggests misalignment on role requirements or market realities
Entry-Level & High-Volume 70% to 85% Large candidate pools should enable high fill rates regardless of assignment structure; below 65% indicates inadequate sourcing or poor candidate quality
Executive & Specialized Roles 40% to 60% Challenging searches require adjusted expectations; below 35% may indicate agency lacks necessary specialization or market access
Contract & Temporary Staffing 65% to 80% Temporary placements should achieve high fill rates due to lower candidate commitment barriers; below 60% suggests inadequate candidate pool management

Clients evaluating recruitment agencies should request fill rate data segmented by assignment type, role level, and time period, rather than accepting a single aggregate number that may mask poor performance in specific areas. Additionally, fill rate should be evaluated alongside time-to-fill (faster is generally better, targeting 30 to 45 days for mid-level roles) and quality-of-hire metrics such as first-year retention rates (should exceed 85%) and hiring manager satisfaction scores (targeting 4.0 or higher on 5-point scales).

For your recruitment agency, transparency about fill rate performance builds client trust and allows for productive conversations about improving outcomes through better collaboration, more realistic job specifications, and appropriate assignment structures that align incentives between your agency and your clients.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

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