Why a Monthly Recruitment Retainer Makes More Sense Than Percentage-Based Hiring Fees

Hiring experienced professionals is one of the most important investments a growing company makes. But how you pay for recruitment can significantly impact your hiring budget, speed, and overall control.

Many companies still rely on a percentage-based recruitment fee model.

While it may look simple on the surface, it often becomes expensive and unpredictable as hiring volumes increase.

A monthly recruitment retainer offers a smarter, more transparent alternative, especially for companies hiring multiple professionals.

Let’s understand this with a real-world example.

A Real Hiring Scenario

Imagine a company that wants to hire 4 professionals with 5+ years of experience.

Each candidate is offered a salary package of ₹8,00,000 per year (₹8 LPA).

The company now has two common options to choose from:

1. Pay a percentage per hire, or

2. Opt for a monthly recruitment retainer.

Option 1: Percentage-Based Recruitment Fees (8.33%)

Under the percentage model, the recruitment fee is calculated on the candidate’s annual salary.

• Recruitment fee per hire: 8.33% of ₹8,00,000 = ₹66,640 (plus GST)

• Total recruitment cost for 4 hires:₹66,640 × 4 = ₹2,66,560 (plus GST)

Challenges with the Percentage Model

• The higher the salary, the higher the recruitment fee

• Costs increase rapidly when hiring multiple candidates

• No fixed monthly hiring budget

• Companies pay per hire, not for recruitment effort or continuity

This model works best only when hiring one role occasionally, not when scaling teams.

Option 2: Monthly Recruitment Retainer Model

Now, let’s look at the monthly retainer option.

For hiring 3–5 candidates in a month, the fixed recruitment retainer is:

• ₹1,25,000 per month + GST

This single fee covers:

• Candidate sourcing

• Screening and shortlisting

• Interview coordination

• Offer negotiations and closures

• Continuous hiring support throughout the month

No matter whether the salary is ₹6 LPA or ₹20 LPA, the recruitment cost remains the same.

Cost Comparison at a Glance

Hiring Model	Total Cost for 4 Hires
Percentage-Based (8.33%)	₹2,66,560 + GST
Monthly Retainer	₹1,25,000 + GST

Total Savings with Retainer:

₹1,41,560+ saved in a single month

That’s nearly 50% lower recruitment cost for the same hiring outcome.

Why the Retainer Model Is Better for Growing Companies

A monthly recruitment retainer is not just cheaper, it’s also more strategic.

1. Predictable Hiring Costs

Companies know exactly how much they will spend each month, making budgeting easier.

2. Faster Hiring

Recruiters work continuously, not role by role, leading to quicker closures.

3. No Salary-Based Penalty

Higher salaries do not mean higher recruitment fees.

4. Ideal for Multiple & Senior Hires

Perfect for companies hiring mid-level to senior professionals or building teams.

If your company is hiring multiple professionals, especially experienced talent, a monthly recruitment retainer delivers lower cost, faster hiring, and complete cost transparency.

Instead of paying more as salaries rise, companies gain a predictable, scalable hiring model that supports long-term growth.

In simple terms:When you hire more, you should pay smarter, not more.

Start Hiring Smarter Today with Anjusmriti Global.

---

Interesting Reads:

How to Hire or Recruit Flutter Developers: Top Tips for Success

Can Delhi NCR based Recruitment Agencies Help Small Businesses Hire International Talent?

What Are the Best Recruitment Services for IT Companies in Delhi NCR?

FAQs

1. What is a monthly recruitment retainer model?

A monthly recruitment retainer is a fixed-fee hiring model where companies pay a predictable monthly amount instead of a percentage of each hire’s salary. With Anjusmriti Global Recruitment staffing Solutions, this model covers end-to-end hiring support including sourcing, screening, coordination, and offer management without cost surprises.

2. How is a recruitment retainer better than percentage-based hiring fees?

Percentage-based fees increase as salaries rise, often penalizing companies for hiring senior or niche talent. A retainer model offers cost control, faster hiring, and unlimited hiring support within scope, which is why many global companies prefer working with Anjusmriti Global Recruitment staffing Solutions for scalable hiring.

3. Why do global companies prefer monthly recruitment retainers?

Global companies hiring across multiple roles, locations, or countries need predictability and speed. A monthly retainer allows them to plan budgets, ramp teams faster, and avoid renegotiating fees for every hire, making it ideal for long-term growth strategies.

4. Is a recruitment retainer suitable for bulk or ongoing hiring?

Yes. A retainer model is especially effective for bulk hiring, continuous recruitment, and building entire teams. Anjusmriti Global Recruitment staffing Solutions works as an extended recruitment arm, ensuring consistent talent delivery without per-hire cost pressure.

5. Does a monthly retainer reduce time-to-hire?

Absolutely. Since recruiters are fully dedicated and not chasing individual commissions, hiring moves faster. Our clients experience shorter hiring cycles because Anjusmriti Global Recruitment staffing Solutions prioritizes quality pipelines, proactive sourcing, and real-time coordination.

6. What types of roles are best suited for a retainer-based recruitment model?

Retainer models work best for leadership hiring, niche tech roles, senior specialists, GCC setups, and multi-role hiring mandates. Global organizations rely on Anjusmriti Global Recruitment staffing Solutions to handle complex hiring where speed, confidentiality, and consistency matter.

7. Is a recruitment retainer more cost-effective in the long run?

Yes. Over time, a retainer often costs significantly less than paying repeated percentage-based fees. Companies gain better ROI, predictable expenses, and higher hiring success rates when partnering with Anjusmriti Global Recruitment staffing Solutions on a monthly model.

8. How does Anjusmriti Global Recruitment staffing Solutions deliver better results with a retainer model?

We align deeply with your business goals, hiring plans, and growth timelines. Instead of transactional hiring, Anjusmriti Global Recruitment staffing Solutions delivers strategic, relationship-driven recruitment that global companies trust for sustainable talent acquisition.