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.
More Human Resources kpi library
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