How to increase placement fees without losing clients

Effective communication strategies

When it comes to raising your fees, strong client relationships are your greatest asset. Take the time to truly understand each client’s unique needs, challenges, and long-term goals, as it shows that you’re invested in their success, not just filling roles. Regularly check in with clients to provide updates, gather feedback, and address any concerns. Consider scheduling quarterly business reviews with key clients to discuss their hiring plans, provide market insights, and gather feedback on your services. This level of partnership builds trust and makes fee increases feel like a natural reflection of the value you deliver.

When it’s time to present a fee increase, how you frame the conversation matters just as much as the number itself. Back up your proposal with clear data, like average salaries for similar roles, the cost of attracting top talent, or metrics that highlight your impact. This kind of transparency builds trust and makes the decision easier for your clients. OBS Business reports that 68% of clients accept fee increases when recruiters provide transparent data on market rates and support the raise by improving the product or service.

When raising your fees, it’s smart to anticipate objections before they come up. Think about what your clients might push back on and be ready with clear, confident, and empathetic responses that highlight the long-term value of your partnership. Flexibility can go a long way in easing their concerns. For instance, offering phased increases or flexible payment terms shows that you’re mindful of their budget while standing firm on the value you deliver. You might say something like, “We understand budgets are tight, which is why we’re proposing a gradual fee increase over the next six months to minimize the impact on your bottom line.” This approach reframes the conversation from a hard cost increase to a collaborative solution, making clients far more likely to stay on board.

Timing your fee increases

Before making any changes, take a close look at market conditions: trends in demand, average salaries, and competition for top talent. When the data supports your decision, clients are far more likely to understand and accept a fee adjustment. For instance, saying something like "With the rapid growth of the e-commerce industry, demand for experienced digital marketers has skyrocketed, making now an opportune time to adjust our placement fees for these roles."

In addition to analyzing market demand, consider broader economic trends, industry-specific growth, and regional salary shifts. When you can show clients clear evidence (whether it’s a spike in demand for niche skill sets or increased salary expectations across the board) the conversation becomes far less emotional and far more logical. By presenting transparent market intelligence, you’re positioning yourself not just as a service provider but as a strategic advisor.

It’s also important to align your timing with clients’ budgeting and hiring cycles. Communicate changes well in advance to allow clients to plan accordingly. One strategy top agencies rely on is implementing fee increases during Q4 planning cycles, when clients are setting budgets for the next year. This approach feels collaborative rather than abrupt, and it’s proven to drive significantly higher acceptance rates than mid-year increases.

Leveraging Happlicant's features

Happlicant makes managing placement fees and client communication smooth and professional: exactly what you need when building trust and justifying your value. With its built-in tools, you can easily track placement fees, generate invoices, and monitor payment status all in one place. The dashboard gives you a clear overview of pending and paid fees, ensuring no invoice slips through the cracks. Transparency goes a long way when discussing fees, and Happlicant’s client portal makes it easy to share reports and insights directly with your clients. Giving them real-time access to their hiring progress and placement costs reinforces your commitment to transparency and builds confidence in your partnership. Clients appreciate the ability to access real-time data on their hiring progress and placement fees through Happlicant's secure client portal.

Beyond finances, the portal also centralizes all communication, document sharing, and progress tracking, cutting down on email clutter and keeping everything organized. And with Happlicant’s resume rebranding feature, you can present candidates in a polished, consistent format that reflects your clients’ branding. Some agencies have even seen a 20% increase in interview invitations after implementing this feature – proof that smart presentation can make a real difference.