Key Takeaways
- In Quebec, most recruitment agencies charge between 15% and 25% of the candidate's annual gross salary, payable strictly on success.
- There are three main billing models: contingency (success-based), fixed fee, and exclusive retainer with staged payments.
- Any agency offering temporary staffing must hold a valid CNESST permit, always verify this before signing a mandate.
- The cost of a failed hire or a position left vacant too long almost always exceeds the fees of a specialized agency.
How Does a Recruitment Agency Bill for Its Services in Quebec?
Three billing models dominate the Quebec market, and choosing between them directly determines your level of financial risk. Each one splits payment differently between the launch of the mandate and the confirmation of the hire.
The Contingency Model: Pay Only Upon Hire
Under this model, no amount is owed until the candidate is actually hired. The agency assumes the risk of the search, which encourages it to present genuinely suitable profiles rather than bill for partial work. Fed Group operates exclusively under this model: fees, ranging from 15% to 25% of the annual salary for a permanent position, are only billed once the hire is confirmed, no deposit, and no administrative fees. This is the preferred model for companies that want to manage their cash flow without any upfront commitment.
The Fixed-Fee Model
The amount is set in advance, regardless of the final salary negotiated with the candidate. This model suits companies hiring for several similar positions over a given period who want a predictable budget from one mandate to the next.
The Exclusive Mandate Model (Retainer)
The company entrusts the search to a single agency, with payment split across several installments (at launch, upon presentation of a shortlist, then at hire). This model is mostly seen for executive positions or rare profiles, where exclusivity justifies a stronger mutual commitment.
What Is the Average Rate for a Recruitment Agency in Quebec?
The most common rate falls between 15% and 25% of the position's annual gross salary, the same benchmark applies whether it's a technical role or an executive position. This percentage then varies depending on how rare the profile is and how urgent the mandate is.
Cost Example by Sector
| Sector | Position (Intermediate Level) | Annual Gross Salary | Estimated Fees (20%) |
| Finance & Accounting | Corporate Financial Analyst (CPA) | ~$97,000 | ~$19,400 |
| Information Technology | Full-Stack Developer | ~$100,000 | ~$20,000 |
| Supply Chain | Buyer | ~$90,000 | ~$18,000 |
| Manufacturing Engineering | Production Engineer | ~$90,000 | ~$18,000 |
Ranges based on Greater Montreal data, Fed Group 2025 salary guides.
What the Fee Actually Covers
Fees generally cover defining the need, sourcing and direct outreach to candidates, screening and interviews, and support through to the signing of the offer. They often include follow-up after the hire, for both the client and the candidate, to quickly identify any adjustments needed for a successful integration. A replacement guarantee in case of departure during the probationary period isn't always automatic, confirm it before signing.
Does the Cost Vary by Sector?
Yes, significantly: a rare or highly specialized position generally costs more to fill than one with many qualified candidates available. The agency's sector expertise also affects the outcome, independent of the rate charged.
Finance & Accounting (Fed Finance)
CPA profiles (2 to 5 years of experience) remain among the most sought-after in the Quebec market, which keeps upward pressure on both timelines and, at times, fees. Fed Finance experts track these trends continuously to adjust their rate recommendations.
Information Technology (Fed IT)
Infrastructure, cybersecurity, and development positions that combine multiple technical skill sets often negotiate a rate at the higher end of the range, due to the scarcity of qualified candidates. Fed IT recruits specifically for this type of profile.
Supply Chain & Logistics (Fed Supply)
Demand for transport analysts and demand planners has intensified with the transformation of distribution models, which has driven compensation, and therefore percentage-based fees, upward. Logistics recruitment at Fed Supply draws on a candidate base tracked over several years.
Manufacturing Engineering (Fed Manutech)
Positions related to production and continuous improvement remain in demand despite a more cautious market in 2024–2025, keeping fees stable rather than rising. Manufacturing engineering recruitment at Fed Manutech combines on-site visits and job description redesign to secure every mandate.
Recruitment Agency vs. In-House Recruitment: What's the Real Cost?
Recruiting in-house may look free on paper, but the full picture tells a different story once the hidden costs are added up. Comparing a specialized recruitment agency to in-house recruitment is never just about the agency's fees.
The Hidden Costs of In-House Recruitment
An internal recruitment process ties up manager time, sourcing tools, job posting costs, and carries a higher risk of a bad hire due to limited access to passive candidates (those already employed and not active on job boards). That time has a real cost, even if it never shows up on an invoice. Pre-hire technical testing may be included in an external agency's fees (confirm with the consultant).
The Real Cost of a Bad Hire or a Position Left Vacant Too Long
According to data reported by the Ordre des CRHA, the true cost of an employee departure typically represents between 15% and 30% of annual salary once recruitment, onboarding, and temporary productivity loss are factored in. This can climb to 30–50% for certain less specialized positions. For a $60,000 position, that already amounts to $9,000 to $18,000, a figure comparable to, or even higher than, a specialized agency's fees. The Institut de la statistique du Québec also notes a slowdown in the number of vacant positions in the first quarter of 2026, but anticipates a return of labour scarcity later this year, which makes speed of placement all the more strategic.
Who Pays the Fees: The Company or the Candidate?
Always the client company. A legitimate recruitment agency never charges candidates for a corporate position, regardless of the billing model used (contingency, fixed fee, or exclusive mandate). Fed Group applies this principle across all its mandates: fees, ranging from 15% to 25% of the annual salary for a permanent position, are only due once the placement is completed, no upfront fee for the company.
What Guarantees Should You Expect from a Recruitment Agency?
Three things are worth confirming before signing a mandate: the length of the replacement guarantee (often aligned with the probationary period), the exact terms of that guarantee (free replacement or partial refund), and, for agencies offering temporary placement, the validity of their CNESST permit. This permit is mandatory in Quebec for any staffing agency or agency recruiting temporary foreign workers, and its status can be checked directly in the CNESST's public registry.
Trust Your Next Hire to Consultants Who Know Your Industry
A bad hire almost always costs more than a specialized agency, and a position left vacant too long puts strain on an entire team. Fed Group supports you with no upfront fees: you only pay once the candidate is on the job, working with consultants dedicated to your sector (finance, IT, supply chain, manufacturing engineering) who understand the realities of your industry. Talk to the Fed Group team that matches your recruitment sector about your next mandate.
FAQ
Is the rate the same for a permanent position and a temporary or contract position?
No. The percentage-of-salary model mainly applies to permanent positions. For temporary or contract staffing, billing is generally based on an hourly rate or a markup applied to the placed worker's wage.
How much time should be expected between the mandate and the candidate's hire?
This mostly depends on how rare the profile is, but a well-scoped mandate is generally completed within a few weeks. Some urgent Fed Group placements have been finalized in one to two weeks thanks to a pool of candidates already being tracked.
What happens if the agency doesn't find a candidate for the position?
Under a contingency (success-based) model, the company pays nothing if the mandate doesn't result in a hire. The agency can then propose revisiting the target profile or adjusting the search strategy, at no additional cost.
Can the same position be given to several recruitment agencies at once?
It's possible, but rarely advisable. It can hurt a company's image if candidates see the same posting relayed by multiple agencies, and it often reduces each provider's level of commitment to the mandate.
Is the rate higher for an executive or director-level position?
Generally yes, due to the scarcity of profiles and the complexity of the evaluation. Executive mandates are sometimes negotiated under a different model (exclusive retainer with staged payments) rather than a simple contingency percentage.
