The Impact of Finder’s Fees on Teacher Recruitment: Are They Worth the Cost?

Recruiting and retaining top teaching talent is one of the biggest challenges facing schools today. With an ongoing teacher shortage and increasing financial pressures, many schools turn to supply agencies to fill vacancies. When a temporary teacher excels in the classroom, transitioning them into a permanent role seems like the obvious choice. But at what cost?

The transition from temporary to permanent staff can come with a significant price tag. Finder’s fees imposed by recruitment agencies can reach thousands of dollars—a hefty sum for schools already operating on tight budgets. So, is the temp-to-perm approach a smart recruitment strategy, or are these fees creating unnecessary barriers to hiring the right teachers?

The Growing Role of Supply Teachers

The shortage of applicants for permanent teaching roles means that supply agencies play an increasingly important role in staffing schools. This stopgap measure provides immediate relief for schools in need, but it raises the question: what happens when a supply teacher proves to be an invaluable asset?

Many schools would love to offer permanent contracts to supply teachers they have come to trust. The advantages are clear—schools get to see teachers in action before making a long-term commitment, and teachers get a chance to experience the school’s culture and expectations. However, recruitment agency fees often stand in the way of what should be a seamless transition.

How much will it cost to recruit a teacher?

In Australia, recruitment agency fees for hiring teachers on long-term or permanent contracts typically range from 15% to 25% of the teacher’s annual salary. For example, if a teacher’s annual salary is $80,000, the recruitment fee could be between $12,000 and $20,000.

For relief (supply) teaching positions, daily rates vary by state and are influenced by factors such as experience and the specific school.

The final fees for both permanent placements and relief teaching roles often depend on negotiation skills, agency flexibility, and the teacher’s experience and qualifications. 

Shortage subject areas with high teacher demand can cause spikes in recruitment costs and this can be even higher with increased competition for candidates.

You can avoid this element of competition by getting in early.

For schools struggling to manage budgets, these costs can be prohibitive. Some principals admit they hesitate to convert supply teachers to permanent roles purely due to financial constraints, even when the teacher is an excellent fit for the school.

Is Temp-to-Perm Worth It?

Despite the costs, there are clear benefits to the temp-to-perm model. Schools gain first-hand experience of a teacher’s abilities and how they fit into the school community. Agencies also handle vital compliance checks, including Working with Children Checks and reference verification, saving schools valuable time and resources.

However, many educational leaders argue that the current fee structures do not reflect the value agencies provide. With school funding under immense pressure, some question whether recruitment agencies should be charging such high fees to schools that are simply trying to secure the best teachers for their students.

How Can Schools Reduce Recruitment Costs?

If finder’s fees are a concern, we recommend that schools take several proactive steps to manage recruitment costs while still attracting top talent:

• Plan Ahead: Recruiting early helps schools secure teachers before demand and costs peak.
• Negotiate Terms: Many agencies are open to discussions, especially for schools looking to fill multiple vacancies.
• Partner with the Right Agency: Some recruitment agencies, like Point to Point Education, understand the financial challenges schools face and offer more flexible, cost-effective solutions. 

How Point to Point Education Supports Schools

As a well-established, family-owned teaching agency, Point to Point Education is committed to helping schools recruit high-quality teachers without excessive fees. Our unique position allows us to offer competitive rates while maintaining a high standard of service.

• Cost-Effective Recruitment: We work closely with schools to ensure budget-friendly recruitment solutions.
• Pre-Vetted Teachers: With over 150+ fully vetted teachers ready for placement, schools can quickly access top talent without upfront costs.
• Early Hiring Advantage: Schools that plan ahead and secure teachers for key hiring periods can negotiate lower fees and avoid last-minute hiring pressures.
• Flexible Partnership: We tailor our services to meet the needs and budgets of individual schools and education providers, ensuring recruitment is a smooth and stress-free process.

Looking Ahead: Sustainable Recruitment for Schools

With rising costs and increasing competition for teachers, schools must adopt a strategic approach to recruitment. Rather than being deterred by hefty finder’s fees, schools should seek recruitment partners who prioritise long-term relationships over short-term profits.

At Point to Point Education, we believe that every child deserves the best teachers, and no school should miss out due to budget constraints.

Let’s work together to find recruitment solutions that benefit both schools and educators.

How does our school or trust negotiate an agreeable fee for teacher recruitment services?

If your school is looking to hire top teaching talent without breaking the budget, we’re here to help.

Our Education Director Carly is available on a TEAMs call to discuss your needs and budget – let us work the numbers for you.

By simply providing us with multiple vacancies for April and/or September we can discuss how this will reduce your recruitment costs instantly.

Contact Carly HERE to ask about budget-friendly recruitment options:

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