Recruitment firms set to sustain bonuses despite economic headwinds – REC

A market-leading survey points to steady bonus payouts for recruiters this year. But the slightly constrained outlook is pushing firms to rethink how they can reward and retain talent in a tough economy.

REC and KPMG UK are publishing their ‘Pay and Reward in the UK Recruitment Industry’ report today. It is one of the few sector-specific analyses of salaries, bonuses and benefit provision across UK recruitment. The surveys within the report are a vital measure of the priorities, talent and challenges that influence pay and reward right now.

The job market shows signs of stabilisation in 2026, lifting business confidence after two difficult years for most of the industry marked by low UK growth and rising employment costs. But today’s report suggests optimism should be tempered, however when it comes to bonus expectations. With operating costs still climbing and competition for talent intensifying, recruitment firms are carefully balancing reward budgets against the need to retain key staff. This means most bonuses are expected to stay broadly unchanged, with uplift concentrated in fee-earning roles.

Maxine Bligh, REC Chief Membership & Innovation Officer, said:

“Recruiters are expected to continue rewarding top performers and revenue generators with bonuses despite a cautious backdrop. Stronger-than-expected resilience in the job market at the start of this year despite the conflict in the Iran region could also prompt some firms to accelerate or increase payouts. But how long the conflict continues and its impact on the labour market going forward could be a factor in determining the amount of rewards. The bigger test in 2026 will be how creatively firms approach pay and incentives, particularly for entry-level roles critical to sustaining the talent pipeline. That pressure is already evident, with 84% of firms planning changes to at least one element of their broader reward framework, and only 30% expecting to make no changes at all.”

This recruitment sector report has found that the most common benefits are pension schemes (90.7%), flexible working (86%) and additional annual leave (86%). Over half offer private healthcare (60.5%) or recognition programmes (62.8%). There are less common benefits such as wellbeing support (59.3%), training budgets (47.7%), life assurance (31.4%) and enhanced parental leave (32.6%); recruitment firms may look to enhance these this year to compensate staff for steady but unspectacular bonuses.

Maxine Bligh said:

“The REC advises recruitment firms to compete effectively through non-financial rewards, particularly wellbeing and professional development, where provision remains inconsistent across the sector. Firms should also invest in clearer long-term career pathways, especially for early career staff, to counter more limited short-term financial incentives. The REC’s learning and development services can support employers as they adapt how they reward and retain talent.”

Expectations for bonuses 2026 in today’s report:

• ‘About the same’ was the most common expectation reported by respondents, with around 32-49% of organisations indicating no planned change to bonus levels or incentive structures.
• Fee-earning roles, where impact is most measurable, may see moderate uplifts, while junior and support roles may experience flatter or tightening reward structures.
• Higher expectations are concentrated in revenue-generating positions, such as for 360 Consultants, Team Leaders are close behind and Leadership roles also show a modest net increase.
• Early-career and non-fee-earning roles face a more uncertain outlook, with those in entry-level, resources and operational support more likely to make do with the same bonus as last year.

Commenting on the report, Oliver Duckett, Partner, Sector Head for Professional & Business Services at KPMG UK, said:

“Recruitment is going through real change as technology, tighter economics and rising skills expectations redefine what good performance looks like. While most firms plan marginal changes to pay over the coming year, firms will increasingly need to shift reward models away from activity and volume targets towards meaningful results, skills, and long-term value. How quickly firms adapt will be critical to their resilience and ongoing competitiveness.”

Notes to editors

1.     The report is available on the REC website for members. To request a copy of the report, contact the press office below. More information about the methodology is in Section Six of the report. A mixed-methods approach was adopted to gain a comprehensive understanding of pay and reward in the industry. The survey was conducted between 26 January 2026 and 13 February 2026.

2.     For clarity, the term ‘bonus’ in this report includes commission. We use ‘bonus’ rather than ‘commission’ because the research also covers non‑sales roles, where bonuses are not commission-based.