Nursery Recruitment Agency Fees: What Are You Actually Paying For?

Compare the same recruitment service

A permanent-placement agency, a temporary staffing service, a booking app and a job board are not interchangeable. An agency may find and introduce candidates. A staffing service may supply temporary workers. A job board may sell advertising while leaving applications and screening to you.

Before asking which is cheapest, define the problem: a permanent room leader, short-notice cover, a bank of staff or more applicants for your own recruitment process. The best fee model depends partly on the work and risk remaining with your nursery.

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Permanent fees: ask what the percentage applies to

Ask which salary figure the agency uses: basic annual pay, an estimated package or another defined amount. Confirm how part-time roles, bonuses or later salary changes affect the calculation. Then request the total in pounds, with VAT treatment stated.

Illustrative calculation, not a market average: on a £26,000 salary, a 12% fee is £3,120 and a 15% fee is £3,900 before any applicable VAT. The difference is £780. That comparison is meaningful only if the services and contract terms are also understood.

Ask when the fee becomes payable: acceptance, start date or another trigger. Confirm what happens if the candidate does not start. Do not assume that “no placement, no fee” answers every scenario in the terms.

Temporary rates: an invoice is not the worker’s wage

The hourly charge to your nursery is not automatically the hourly amount paid to the worker. Ask the provider to explain what its rate includes, such as employment costs, relevant leave costs, checks, administration or service charges. Do not assume the difference is simply agency profit.

Request a total for an actual shift pattern, including minimum booking hours, overtime, travel, late cancellations, weekend rates and tax treatment. Ask how timesheets are authorised and how disputes are resolved.

Clarify who employs or engages the worker and what obligations remain with you. An app interface does not by itself tell you whether you are buying agency staffing, using an introduction service or engaging someone through another arrangement.

Read replacement and rebate terms closely

A replacement promise can be useful, but find out what it means. Is it a refund, a credit or an attempt to find another person? What is the time limit? Does it depend on paying the original invoice promptly or notifying the agency within a specified period?

Ask whether the amount reduces over time and whether changes to the role, working conditions or salary affect eligibility. Find out what happens if no suitable replacement is available. Record the answer against the actual contract clause.

A higher fee with useful protection might be better value than a lower fee with little support, but that is a decision to make from the written terms. A headline guarantee is not enough.

Check introductions, transfer fees and exclusivity

Read candidate-introduction terms before asking an agency to send CVs. Ask how long an introduction remains relevant, what happens with candidates already known to you and whether a later hire for a different role triggers a fee.

For temporary workers moving into direct employment, transfer fees have specific legal conditions. Government guidance explains the relevant time periods and extended-hire alternative. Ask the agency to explain how its contract applies rather than assuming any stated fee is automatically payable.

Clarify exclusivity, retainer payments and restrictions before engaging several agencies at once. Keep records of introductions and dates to avoid disputes over who first introduced a candidate.

What screening are you paying for?

Ask the provider to list the checks it performs for the specific service and role. Request clarity on identity, qualifications, references, right to work and the appropriate safeguarding checks. Ask what evidence is shared and what remains for the nursery to complete.

Government guidance sets additional requirements for agencies and employment businesses supplying people to work with vulnerable people, including children. It covers qualifications/authorisations, two references and communicating where required information cannot be obtained. Do not replace those details with a generic “fully vetted” label.

Your nursery still needs its own suitability, induction and supervision arrangements. Ask about any limitations before the person arrives, particularly for urgent cover. A positive agency review does not verify an individual worker’s checks.

A useful quote request to send agencies

Send the same brief to each provider: location, role, age group, required qualifications, salary or hours, start date and essential experience. Ask for:

• The complete fee or invoice rate and applicable VAT.
• Exactly what recruitment and screening work is included.
• Payment trigger and deadline.
• Replacement, rebate and cancellation terms.
• Introduction, transfer and exclusivity clauses.
• How unsuitable candidates or absent temporary workers are handled.

Compare speed, candidate suitability, communication and contract clarity alongside price. For job boards, compare the recruitment work you must still do, not just the advertising fee.

Sources and further reading

Sources checked 14 October 2026. Using an agency to find staff · Transfer fees · Working with vulnerable people. Guidance referring to the EYFS applies to England; check the relevant framework for your nation. Supplier details and terms should be confirmed before ordering.