09 August 2026
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Every pound spent accessing talent is a pound not invested in talent.
A company hires someone on a £60,000 salary.
The recruiter receives £15,000.
The employee who does the actual work receives none of it.
Most people accept this without question.
But if that same £15,000 were invested in the employee through salary, training, wellbeing or development, it could transform their first year.
At Kaplunk, we call this hidden cost the Recruitment Tax.
And more employers are beginning to ask whether it still makes sense.
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The Recruitment Tax is the significant recruitment agency fee paid by employers simply to gain access to candidates.
Most recruitment agencies charge between 15% and 30% of a candidate's first-year salary. For a £60,000 hire, that often means £9,000 to £18,000 leaving the business immediately.
Historically, agencies helped employers and candidates find each other.
Today, technology makes direct connection easier than ever.
As discussed in The Truth About Hiring, many traditional assumptions about recruitment no longer reflect the realities of modern hiring.
The Problem Recruitment Agencies Originally Solved
Today, employers have:
This is one reason interest in the Direct-to-Employer Operating System continues to grow. When direct connection becomes possible, intermediary costs inevitably come under scrutiny.
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The question isn't whether recruiters once added value.
The question is whether the same value still requires a fee worth thousands of pounds.
Direct-to-Employer Hiring enables:
Instead of optimising for commissions, the model optimises for connection.
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Imagine recruiting ten employees.
A business could easily spend well over £100,000 in agency fees.
Now imagine investing that money in:
As explored in How Saved Recruiter Fees Transform Hiring, removing unnecessary recruitment costs creates opportunities that extend far beyond a single hire.
The question becomes:
Should that value leave the organisation at all?
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The Rise of Ethical Hiring reflects a growing belief that recruitment should be more transparent, more efficient and more fair. As employers adopt Direct-to-Employer Hiring, the Recruitment Tax becomes harder to justify.
After all, if employers and candidates can connect directly, why should access come with a £15,000 bill attached?
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