Fees: Cost Of A Typical Retained Executive Search

How much would this search cost?

Beatley Palmer’s search fees are based on a percentage of the expectant starting salary (the bonus does not enter into the computation). A non-refundable retainer is due upfront of approximately 20% of the expectant fee.

• The typical percentage ranges from 20% to 30% depending on the complexity of the search, level of position required and commitment to hiring.
• Based on the factors listed in the example above, this search would warrant a percentage of 26%.
• The range of the expected starting salary for the example given above is $130-170k, or an average of $150k. Therefore, the expectant fee will be $39k. ($150k x .26 = $39k)
• A non-refundable retainer of $7,800 would be due at the start of the engagement. ($39k x .2 = $7,800). No other monies would be due until the search is completed.
• After the successful candidate is selected, the remaining $31,200 would be due upon the candidate’s start date.
• Sometimes a client agrees to a salary range. In the example above, it is $130-170k. However let’s say the client really does not want to pay more than $160k and would only go to $170k in unusual circumstances. Depending on the circumstances, Beatley Palmer may “cap” the fee. In this case, the fee would be “capped” at $41,600 ($160k x .26). If a candidate were hired at a base pay of $170k, the total fee would remain at $41,600.
• In addition, any reasonable direct expenses incurred during the search such as travel and videoconferencing will be billed at cost. If it is a local search, there are typically no direct expenses. Specific requests for criminal, credit or any other background checks must be made in writing by the client’s representatives and will be billed at cost. Usually, the client has set internal procedures for criminal & background checks and they use their own resources for these tasks.
• If during the search, circumstances cause the client to put the search on “hold”, it isn’t a problem. The search will resume when the client indicates they are ready to continue. There will no adjustments to the original agreement. This assumes that there are no “major” changes in the position description, expectant compensation package and scope of the search. The fee may change if the expectant salary range increases or decreases.
• Change orders are acceptable. It is not unusual for a client to refine what they are seeking during the search process. Sometimes a client will decide that they want to add additional responsibilities to the position. For example, initially a company might have decided that the new CFO would only have the Accounting & Finance department under their domain. During the process, they decide they need someone who can also oversee IT and HR. The additional cost incurred by the company would be a slightly higher fee caused by the probable higher salary multiplied by the appropriate percentage.
• Sometimes a major change to the original specifications is required. This may be caused by market conditions, events at the company, etc.. For example, if a company was originally seeking an Assistant Controller, but decided they needed a CFO instead, then an appropriate adjustment to the fee structure would be warranted. Any previously paid retainer would be credited to the new fee structure.

Our Search Is Guaranteed Period.

Beatley Palmer guarantees our work. If a candidate is not performing to expectations or leaves on their own within a specified period after their start date, Beatley Palmer will find a replacement candidate for no additional fee other than additional incurred out of pocket expenses. Depending on the nature of the position, this guarantee period will last from six months to 1 year after the start date of the initial hire.

This guarantee does not cover dismissal of candidate or elimination of a position for either budgetary or operational reasons. This placement guarantee is subject to timely payment of prior invoices.