Recruiter Invoice Template: Placement Fees + Guarantees

Quick answer: A recruiter invoice template bills an employer for a successful hire. It shows the candidate, job title, start date, fee basis (for example, first-year base salary), the fee percentage and amount, any retainer already paid, the guarantee period, payment terms and the balance due. Contingency recruiters invoice at hire; retained recruiters invoice in installments.

Placement fees are large, one-off invoices, often five figures, so a mistake in the salary basis or a missing guarantee clause can delay payment by weeks. This guide explains how recruiters and search firms structure placement fees, the difference between contingency and retained search billing, and how to write an invoice that an employer's accounts payable team will process quickly. It includes worked examples for both models.

What is a recruiter invoice?

A recruiter invoice, also called a placement fee invoice, is a bill from a recruiting agency, executive search firm or independent recruiter to a hiring company. It charges for finding and placing a candidate in a permanent role. The fee is usually a percentage of the hire's first-year compensation and is set out in a signed fee agreement or terms of business.

This is different from temporary or contract staffing, where the agency employs the worker and bills hourly with a markup. For that model, see our staffing agency invoice template. Permanent placement invoices are simpler in structure but higher in value, and they come with guarantee terms that do not apply to temp work.

How are recruiter placement fees calculated?

The basic formula is: fee = fee basis x fee percentage. The fee basis is usually first-year base salary for contingency searches and may be total first-year cash compensation (base plus target bonus) for retained searches.

Industry guides commonly describe contingency fees in the range of about 15% to 25% of first-year base salary, with 20% often cited as typical, and retained search fees higher, often around 25% to 35% of first-year compensation. These are rules of thumb from industry sources rather than an official survey, and fees vary by role, seniority, market and how hard the search is. Treat the figures in this guide as illustrative and set your own rates in your agreement.

Feature	Contingency search	Retained search
When paid	Only if the client hires your candidate	Installments during the search, regardless of outcome for early payments
Exclusivity	Often non-exclusive; client may use several agencies	Exclusive to one firm
Typical roles	Individual contributors, mid-level, high-volume roles	Executives, senior leaders, niche specialists
Fee basis	Usually first-year base salary	Often first-year base plus target bonus
Invoice timing	One invoice at offer acceptance or start date	Usually three invoices (thirds)
Guarantee	Commonly 60 to 90 days	Often replacement search for a longer period

Some recruiters use a flat fee per hire, especially for high-volume or hourly roles, and some use "container" or engaged searches with a smaller upfront fee and the rest at placement. Whatever the model, the invoice should restate the calculation so the client can check it.

What should a placement fee invoice include?

Field	Example
Agency details	Legal name, address, contact, tax ID if requested
Client details	Company legal name, hiring manager, AP email, PO number if issued
Invoice number and date	RC-2026-0047, November 2, 2026
Agreement reference	"Per fee agreement dated July 8, 2026"
Candidate and role	Candidate name, job title, department, location
Key dates	Offer accepted date and start date
Fee basis	First-year base salary $92,000
Fee percentage and amount	20% = $18,400
Credits	Retainer or engagement fee already paid
Payment terms	Net 30 from invoice date; see net 30 payment terms
Guarantee	"90-day replacement guarantee from start date, subject to payment within terms"

Do not include sensitive candidate details beyond what the client already knows. Name, title and start date are enough; leave out personal contact information and anything from background checks.

Contingency recruiter invoice example

A recruiter places a senior accountant with a 20% contingency fee based on first-year base salary. The candidate starts on November 2, 2026, and the agreement says to invoice on the start date.

Summit Talent Partners | Invoice RC-2026-0047 | Date: November 2, 2026 | Due: December 2, 2026 (net 30)
Bill to: Harbor Logistics Inc., Accounts Payable | PO 55120

Description	Basis	Rate	Amount
Placement fee: Senior Accountant (candidate: R. Patel), start date November 2, 2026	$92,000 first-year base salary	20%	$18,400.00
Total due			$18,400.00

Terms printed below: "Fee per agreement dated July 8, 2026. 90-day replacement guarantee from the start date applies if this invoice is paid within terms. Guarantee excludes termination due to layoff, restructuring or change in role." Our free invoice generator lets you add the calculation to the line description exactly like this.

Retained search invoice example

An executive search firm runs a retained search for a VP of Operations at 30% of first-year total cash compensation. The estimated compensation at engagement is $200,000, so the estimated fee is $60,000, billed in thirds of the estimate. The hire's actual package is $180,000 base plus a $36,000 target bonus, for $216,000 total.

Invoice	Trigger	Calculation	Amount
1 of 3 (retainer)	Signed engagement	1/3 x $60,000 estimated fee	$20,000.00
2 of 3	Shortlist presented (or 45 days)	1/3 x $60,000 estimated fee	$20,000.00
3 of 3 (final)	Offer accepted	30% x $216,000 = $64,800 actual fee, less $40,000 paid	$24,800.00
Total fee			$64,800.00

The final invoice reconciles the estimate to the actual fee and shows both prior payments as credits. If your retained agreement uses a fixed fee instead of a percentage, the final invoice is simply the last third. For milestone-style billing in general, see our guide to milestone payments and the retainer invoice guide.

Other recruiter fee structures and how to invoice them

Flat fee per hire

For high-volume hourly roles, such as warehouse, call center or retail staff, some recruiters charge a flat amount per hire instead of a percentage. The invoice then lists each hire as a line: name, role, start date and the flat fee. A monthly invoice covering all hires that started in the month keeps paperwork manageable.

Contract-to-hire conversion fees

When an agency places a temporary or contract worker and the client later hires that person directly, the agreement usually requires a conversion fee. It often decreases the longer the worker was billed through the agency. For example, an agreement might set a conversion fee of 20% of first-year salary if the client converts within the first 90 days of the assignment, with a lower fee after that and none after a set number of hours. Invoice the conversion as a one-time fee line, referencing the original assignment and the conversion date.

Engaged or container searches

A middle ground between contingency and retained, an engaged search asks for a smaller upfront fee (for example, a fixed engagement fee) that is credited against the final placement fee. The invoices look like the retained example below in miniature: one engagement invoice, then a final invoice that shows the full fee less the engagement fee.

Hourly recruiting (RPO)

Recruitment process outsourcing and embedded recruiters often bill hourly or a monthly fee, regardless of hires. These invoices follow a consulting invoice format, with hours, roles worked on and expenses such as job board postings.

Model	Invoice trigger	Lines on the invoice
Contingency percentage	Offer acceptance or start date	Candidate, role, salary basis, percentage, fee
Retained	Engagement, milestone, placement	Installment number, calculation, credits
Flat fee per hire	Start date (often batched monthly)	Each hire with flat fee
Conversion fee	Direct hire of a contract worker	Worker, original assignment, conversion date, fee
Hourly or RPO	Monthly	Hours, rate, expenses

How to invoice a placement step by step

1. Get a signed fee agreement before presenting candidates. It should cover fee percentage, fee basis, invoice trigger, payment terms, guarantee, and the period during which a fee is owed if the client hires a candidate you presented.
2. Record each candidate submission. Keep the date, role and client contact. This protects your fee if the client hires your candidate months later.
3. Confirm compensation in writing. When the offer is accepted, ask the client to confirm base salary (and target bonus, if relevant) by email.
4. Invoice on the trigger date. Offer acceptance or start date, as agreed. Use an invoice number format that ties to the search.
5. Include a PO number if the client uses them. Many larger companies will not pay without one.
6. Track the guarantee period. Put the guarantee end date on your calendar and check in with the client and candidate before it ends.
7. Follow up on overdue fees. Large placement fees are worth a phone call to AP a week before the due date.

How do recruiter guarantees work on invoices?

A guarantee protects the client if a new hire leaves or is let go for performance within a set period after starting, commonly 60 to 90 days for contingency placements. Typical remedies:

• Replacement search: the recruiter finds a replacement at no additional fee. This is the most common remedy and protects your revenue.
• Prorated refund: for example, a refund that decreases the longer the candidate stayed.
• Credit: applied to a future placement fee with the same client.

If you issue a refund or credit, send a credit note referencing the original invoice rather than editing the paid invoice. Most guarantees only apply if the client paid the fee within terms, which is a strong incentive for on-time payment. Exclusions usually include layoffs, restructuring, a material change to the role or relocation.

Tax and legal considerations

• Sales tax: permanent placement fees are not taxable in most states, but a few states tax certain employment or personnel services. Check your state and your clients' states; our overview of sales tax on services by state is a good starting point.
• Licensing: some states license private employment agencies, especially those that charge job seekers. Employer-paid recruiters are often exempt, but check before you start.
• 1099s: if you are an independent recruiter operating as a sole proprietor, clients may issue a 1099-NEC if they pay you $2,000 or more for services in 2026. Provide a W-9 with your first invoice.
• Employment law: fee agreements should not depend on candidate characteristics protected by anti-discrimination law. Keep placement fees tied to compensation and role only.

This is general information, not legal or tax advice. If you are setting up an agency, our guide to starting a recruiting agency covers contracts, insurance and licensing in more depth.

Common recruiter invoicing mistakes

• Ambiguous fee basis. "20% of salary" leaves room to argue about bonuses and sign-on payments. Write "20% of first-year base salary, excluding sign-on bonus and equity."
• Invoicing without written salary confirmation. Get the figure in an email from the client.
• Missing PO or wrong legal entity. Large clients often have several entities; invoice the one that signed the agreement.
• Editing paid invoices for refunds. Issue a credit note instead.
• No candidate ownership period. Without it, a client can hire your candidate a few months later and argue no fee is due.
• Letting overdue fees slide. If a fee is seriously overdue, see our guide to collection agencies for unpaid invoices before writing it off.

Recruiter invoice checklist

• Agency and client legal names, invoice number and date
• Fee agreement reference and PO number
• Candidate name, job title and start date
• Fee basis and percentage, with the calculation shown
• Credits for retainers or prior installments
• Payment terms and due date
• Guarantee period, remedy and conditions
• Payment instructions (ACH details or payment link)

A recruiter invoice template that shows the fee calculation, references the agreement and states the guarantee gets placement fees paid without back-and-forth. If you place candidates who later need help with HR policies, our HR consultant invoice template covers that work. When you are ready to bill, our invoice generator is free, needs no sign-up, and downloads a PDF built right in your browser.