How Does An Executive Search Firm Work? How Much Do They Charge?
First, Why Use An Executive Search Firm?
For those seeking to recruit high level talent, such as a CEO or to a board level appointment, executive search firms offer perhaps the most robust and efficient way to identify and recruit the ideal candidate.
The benefits include thorough research to identify the broadest potential pool of candidates. Combined with this, a broad network of contacts that executive search firms have access to.
That last part is especially important, as often the best talent for your appointment may well be in position at a competing business. Executive Search firms can make sensitive approaches like this on your behalf, but in complete confidence.
However, for those unsure how executive search firms work, the first approach may be daunting. This article aims to give you a little background on how working with an Executive Search firm works, how much they charge and what are the executive search fees.
How Does An Executive Search Firm Work?
Here at Novo, we have a professional, process-driven approach. As a privately-owned business, we have an independence and flexibility that enables us to source and headhunt candidates from the widest possible talent pool. Our reach is truly global.
Our typical process would include:
- First Contact. This is a discussion in strict confidence about your needs with one of our highly skilled and experienced Executive Search specialists. We have specialists in a broad range of sectors, each having a depth of knowledge in their respective specialisms, including industry contacts. During this call we will discuss your needs in detail to ensure we create a complete client profile and fully understand your needs
- Search Begins. Using a blend of existing contacts and targeted outreach, our executive search specialists will create lists of the best talent to suit your needs
- Approaches Begin. Once the shortlists have been created, we will approach candidates on your behalf, and interview all candidates
- Shortlisting. After holding interviews with the identified talent, we will then draw up a shortlist of the best
- Recruited. The final candidate is recruited into your role
How Much Do Executive Search Firms Charge?
Executive search firms usually charge for their headhunting services around 33% to 35% of the hire’s annual salary. Whilst the executive search firm is retained, they will often guarantee that they won’t recruit the candidate away from you for a competitor.
Here at Novo, our executive search fee is 30%, however for repeat work, or when engaged to fill multiple assignments with new clients, this can be negotiated.
How Is The Executive Fee Charged?
A typical fee structure for headhunting services would be:
- One third charged when the search begins
- One third charged once a shortlist is approved
- The remainder of 30% charged upon a successful hire
Novo are highly successful at recruiting exceptional executives. In fact, 90% of our executive search assignments reach offer stage within 6 weeks and 95% are successfully completed.
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