While employers recognise the value of employing agencies, firms continue to be frustrated by high fees, according to research from online recruitment marketplace TalentPuzzle.

The research shows that 76% of the business owners and HR staff said they were not getting value for money, while 77% were frustrated at the lack of consistency in recruitment rates and rebates, with businesses paying as much as 25-30% in placement fees.

However, employers said they recognise the value of working with recruitment agencies, with 92% planning to use an agency in the next six months.

Virginia Raemy, chief executive of TalentPuzzle, says: “With so little consistency and transparency when it comes to fees it is easy to see why employers can feel ripped off by recruitment agencies.

“Employers should have more power to set prices according to their budget. At a time when businesses are looking to reduce recruitment costs, the recruitment industry needs to start being more realistic and transparent, while ensuring the quality and targeting of CVs they send through improves.”