KPIHuman Resources

Agency Hire Rate

Percentage of hires sourced through external recruitment agencies, a cost driver to be managed

What is Agency Hire Rate?

Agency hire rate is the percentage of hires made through recruitment agencies. It shows how much an organisation relies on external recruiters.

Agency fees are usually high, so a large share can raise the cost of hiring significantly.

How this KPI is measured

Function
Human Resources
Sub-function
Talent Acquisition
Industry
All Industries
Type
Lagging
Impact
Financial control
Unit
%
Measurement frequency
Quarterly / Annual
Formula
(Agency hires / Total hires) × 100

How to calculate it

Divide agency hires by total hires, and multiply by 100.

For example, if 40 of 200 hires came through agencies, the rate is 20%.

Compare cost and quality of agency hires with other channels, and consider the roles where agencies add real value, such as niche or senior positions.

Where it is used

  • Controlling hiring cost

    Reduce reliance on fees.

  • Planning sourcing strategy

    Decide where agencies fit.

  • Negotiating agency terms

    Use volume.

How to improve it

Tips and common mistakes

  • Compare the total cost, not only the hire count.
  • Use a small preferred supplier list.
  • Track quality of agency hires.

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