A 75-person specialist insurer in Birmingham needs a head of underwriting, six claims handlers for a twelve-month remediation project, and help with a pay structure that grew by accident. In one week the COO receives terms from three agencies. One charges 25% of “total first-year remuneration”. Another offers a rebate only if its invoice is paid within seven days. A third wants a four-week exclusive and has already sent two CVs she never asked for.
The claims handlers could come as temps paid through an umbrella company, which the cheapest agency suggests. Since April 2026 that choice carries a tax liability that sits with the agency, or with the insurer if no agency is in the chain. And the pay project needs a different kind of firm altogether.
The UK has one of the world’s most developed recruitment markets, and one of the least licensed. Almost anyone can set up as a recruiter, so the choice of firm, and the terms you sign, carry more weight than in markets where a regulator screens agencies first.
This guide explains how the UK recruitment and HR-services market works in 2026, profiles 15 firms in three groups and closes with the questions to ask before you engage one. It belongs to the Finding the Right Person hub and pairs with our UK recruiting playbook on job boards, advert law and notice periods. For the global view, see HR consulting and recruitment firms worldwide.
In short
No general licence is needed to run a UK agency; the Conduct Regulations 2003 govern terms, fees and transfers, and the Fair Work Agency now enforces them.
At the time of writing (November 2026), contingency fees typically run at 15–25% of base salary, up to 30% for senior or niche roles; retained search costs about a third of first-year cash pay.
Since April 2026 agencies are jointly liable for unpaid PAYE of the umbrella companies they use, or the end client is if there is no agency.
Labour providers in agriculture, food processing and shellfish gathering need a GLAA licence.
Use specialist recruiters for professional roles, staffing networks for volume, search firms for senior roles and HR consultancies for pay, policy and employment-law support.
How the UK recruitment and HR-services market works
UK law separates an employment agency, which finds people for permanent jobs with you, from an employment business, which supplies temporary workers it engages and pays. Most large firms are both. No general licence has been required since the mid-1990s. Both are governed by the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Businesses Regulations 2003. Since 7 April 2026 the Employment Agency Standards Inspectorate has been part of the new Fair Work Agency, alongside the Gangmasters and Labour Abuse Authority (GLAA).
Agencies are used widely in finance, technology, engineering, care and logistics, though most UK hiring still runs through job boards and referrals. At the time of writing, contingency fees typically run at 15–25% of base salary, with 25–30% for senior or scarce skills. Rebates usually fall on a sliding scale over 8 to 12 weeks. Retained search is billed in stages at about a third of first-year cash compensation. Temps are billed at a charge rate that covers pay, employer National Insurance, holiday pay, pension auto-enrolment and the agency margin.
Two trade bodies set voluntary standards: the Recruitment & Employment Confederation (REC) and APSCo for professional staffing. Notice periods shape every timetable. The statutory minimum is one week, but professionals usually give one month and senior staff three, so an accepted offer can still mean a three-month wait.
UK recruitment and HR firms at a glance
Agency licence required?No, except GLAA sectors
Typical contingency fee15–25% of base; up to 30% senior
Guarantee normSliding rebate over 8–12 weeks
Retained search normAbout ⅓ of first-year cash, in stages
Temp rulesConduct Regs 2003; AWR equal treatment after 12 weeks
Main business hubsLondon, Manchester, Birmingham, Leeds, Edinburgh, Glasgow
Data-protection lawUK GDPR and Data Protection Act 2018
The Conduct Regulations matter most in daily practice. An agency must agree its terms with you before it provides services, so unsolicited CVs followed by an invoice are on weak ground. If you want to keep a temp permanently, the agency may charge a transfer fee only if it also offers an extended period of hire as an alternative. Agencies generally may not charge work-seekers a fee for finding them work.
Temporary workers gain equal treatment on basic pay and conditions after 12 weeks in the same role under the Agency Workers Regulations 2010. Contractors bring IR35: medium and large clients must decide whether off-payroll rules apply and pass that decision down the chain. And since April 2026 new umbrella-company rules make the agency contracting with the end client jointly and severally liable for an umbrella’s unpaid PAYE, and the end client where no agency is involved.
The Employment Rights Act 2025 is being phased in over 2026 and 2027, and its guaranteed-hours measures are expected to reach agency workers. Ask any staffing partner how it is preparing, and see our UK employer compliance guide for hiring expats for visa sponsorship.
Watch outThe cheapest temp rate often hides a non-compliant umbrella company. With joint and several liability now in force, ask each staffing agency which umbrellas it uses, how it audits them and whether it will indemnify you. If you engage contractors directly through an umbrella, the liability is yours alone.
Matching the firm to the UK hire
London holds the deepest professional and search market, while branch networks such as Pertemps, Reed and Randstad matter most for volume and hourly roles in the regions. Public bodies usually buy through Crown Commercial Service or NHS frameworks, so check whether a firm is on the framework you must use. Our hiring channel decision matrix shows when an agency beats a job advert at all.
Who to call for which hire in the UK. Fee bases are typical models at the time of writing (November 2026), not price lists.
Recruitment, selection and placement firms
These firms place permanent staff and supply temps and contractors; some are UK-owned, others are UK arms of international groups. Card text summarises what each firm says it does. Listings are editorial and independent; no firm paid to be included, and inclusion is not a recommendation. Check licences, terms and references directly with each firm.
Hays UKSpecialist recruitment
PermanentTempContract
WhereOffice network across the UK
Best forProfessional and skilled roles: permanent, temporary and contract
Pricing modelPlacement fees; hourly or day rates for temps and contractors
Expertise is grouped into accountancy and finance, business support, construction, education, executive and technology, with desks for engineering, HR and life sciences.
In specialist recruitment since 1960, Reed also offers senior search, RPO, screening, HR consultancy and training. It runs the separate reed.co.uk job board.
Established in 1961, Pertemps says it places 30,000+ temps a week through specialist brands in finance, legal, care, public sector, engineering and IT.
Covers engineering, light industrial, construction and contact centres as well as education, finance, health, HR and legal; Randstad Enterprise adds outplacement.
For board and senior roles, a retained search firm maps the market and approaches people who are not looking. Several UK firms specialise in public, education and not-for-profit appointments.
OdgersExecutive search and leadership advisory
BoardInterimAssessment
WhereUK practice of a firm with 29 offices in 33 countries
Best forBoard, CEO and senior executive search; interim management
Pricing modelRetained search fees; interim day rates
Formerly Odgers Berndtson, renamed Odgers in 2025. Offers search, board and CEO services, interim management and leadership advisory; an AESC member.
UK HR consultancies split into two worlds. SME providers sell outsourced HR advice, contracts and tribunal support on multi-year service agreements. Reward and benefits consultancies sell pay benchmarking, job grading and pensions advice to larger employers.
PeninsulaHR, employment law and health and safety
SMEEmployment lawH&S
WhereManchester head office; offices from Belfast to Bristol
Best forSMEs that want outsourced HR advice, documents and tribunal support
Pricing modelFixed-term service contracts; check length and renewal terms
Provides 24/7 HR advice, contracts, BrightHR software, tribunal representation, health and safety and wellbeing services.
WTW (UK)Reward, benefits and retirement consulting
RewardPay equityRetirement
WhereUK offices of a global firm
Best forPay structures, pay equity and transparency, benefits, retirement
Pricing modelProject fees; data and software subscriptions
UK people services include total rewards, compensation design, pay equity and pay transparency, health and benefits, retirement and employee experience.
Before you engage a recruitment or HR firm in the UK
Send these questions with your request for terms. A firm that answers them clearly in writing is usually one that will be straightforward to work with.
● Before you engage a recruitment or HR firm in the UK · 12 questions
1Did the agency send its terms before introducing anyone, and do they match what we agreed?Terms must be agreed before services start; unsolicited CVs cause fee disputes.
2Is the fee calculated on basic salary or on total first-year remuneration?Bonus and allowances can add several points to the fee.
3How does the rebate scale work, and what voids it?Sliding rebates over 8 to 12 weeks often depend on prompt payment.
4How long does an introduction stay chargeable, and does it cover people we already knew?Agree a ‘prior knowledge’ rule for candidates already in your ATS.
5If we keep a temp permanently, what transfer fee applies, and is an extended-hire option offered?An extended hire period must be offered as an alternative.
6Is an umbrella company in the chain, and who has checked it?Since April 2026 the agency, or you, is liable for its unpaid PAYE.
7Who issues the IR35 status determination for each contractor?Medium and large clients must decide status and pass it down the chain.
8Does the labour provider need a GLAA licence for this work?Farming, shellfish and food processing need one; using an unlicensed provider is an offence.
9Is the firm a member of the REC or APSCo, and will it follow that code?Membership gives you a code and a complaints route.
10Who carries out right-to-work checks, and when?For permanent hires the duty is yours, before day one.
11For HR consultancies: what does the contract length, renewal and notice period look like?SME HR packages often run for years and renew automatically.
12How will candidate and employee data be handled under UK GDPR?Agree retention and deletion for unsuccessful candidates.
Briefing a UK agency so it works for you
Brief one or two firms properly, with the role scorecard, salary range and interview dates, rather than five firms with a job description. A short exclusive of two to four weeks often buys more effort than a wide open brief.
Put the salary range in the brief and the advert. UK law does not require it, but candidates expect it, and a recruiter cannot sell a role labelled “competitive”. Give feedback on every CV within two working days. If the role sits outside the UK, use our guide to hiring where you have no entity before you sign anything.
Consultant’s noteRedline four things in every agency’s terms: fee base (basic salary only), rebate (no payment-within-seven-days condition), introduction period (six months, excluding candidates already known to you) and transfer fee (falling to zero after a set number of weeks of hire).
Your next move
Classify each open role: volume, professional, contract, senior or HR advice.
Shortlist two firms per type from this guide and the directory, and request terms before any CVs.
Redline fee base, rebate, introduction period and transfer fee before you sign.
For temps, ask which umbrella companies are used and request an indemnity.
Check GLAA licences for food, farming or shellfish work and framework status for public bodies.
Agree a feedback deadline and a review date with each firm.
Last Updated: November 2026 · Reviewed by the Kurums HR editorial team. This guide is general information, not legal advice; employment and advertising rules change, so confirm requirements with local counsel before you post.
