What do Executive Search Firms Charge?
Executive search firms typically charge a percentage of the hired candidate’s first-year compensation, ranging from 25% to 35%. This is often referred to as retained search, where the client pays a fee to the firm for their services, often broken down into stages. Contingency search firms, on the other hand, charge a fee only upon a successful placement, usually a percentage of the candidate’s first-year salary.
Retained Search:
Percentage Range:
The fee typically falls between 25% and 35% of the candidate’s salary.
Payment Stages:
The fee is often divided into payments at key milestones, such as finding a shortlist, making an offer, and confirmation of acceptance
Guaranteed Services:
Firms often guarantee that they won’t recruit the candidate away from the client for a competitor.
Why Pay For a Retainer?
The payment of a retainer is intended to obtain a firm commitment from both parties. The executive search firm commit to investing the time and resources necessary to find the right candidate, while in return the client commits to actively collaborate with the firm and to cover part of the costs incurred in the early stages of the recruitment process.
*The biggest takeaway >> If you want to hire the best senior Execs, retained search is the best option.
How can we help you?
1) We help SaaS firm Leaders hire Sales Leaders and Executives.
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Ben Watkins
Director, Intrinsic Executive Search
Further Reading: