How much do executive search firms cost? It can be hard to find executive search firm fees with a simple Google search. Usually, you have to pick up the phone and call a search firm to find concrete costs. You might have to negotiate fees as well, which can be time-consuming.
When time is of the essence during your search, you want to find the right fees without sacrificing candidate quality.
TruPath, a national recruiting firm, breaks down its executive search firm fees in a very transparent manner to give you some perspective. Keep reading to learn more about search firm fees, what they mean and what you can expect.
Types of Recruiting Fees
First and foremost, it is important to know that there are various types of recruiting fees. These fees will differ depending on the type of search firm you partner with.
There are two major types of recruiting firms: retained search firms and contingency search firms.
A retained search firm focuses on locating and placing executive positions. Conversely, a contingency search firm differs by requiring payment after a recommended candidate is hired. There are also firms like TruPath Search that offer both contingency and retained search services.
When partnering with a retained search firm, you are charged a fee upfront. Additionally, these firms will charge 30-35% of the open position’s salary. A contingency firm doesn’t require an upfront fee and charges around 20% of a position’s salary.
TruPath’s Executive Search Firm Fees
How Much are TruPath’s Executive Search Firm Fees?
Generally, fees range from 25-45% when it comes to executive search. Usually, the more difficult the search, the higher the percentage. Not the most helpful, right?! That’s a pretty broad range and translates into thousands of dollars. Depending on the type of firm you partner with, these percentages can vary.
TruPath offers to fee tiers for clients:
- Positions up to SVP – 25%
- C-Suite Positions – 27%
The fee is based on the position’s first-year annual salary—many recruiting firms fee based on total compensation (base + projected bonus). TruPath chooses to be as transparent as possible. Total compensation can be somewhat subjective as it often depends on individual and company performance. No need to guess! This approach also lessens the client’s financial burden.
How Much is TruPath’s Retainer?
- 1/4 to initiate the search
- 1/4 at 30 days after the search is executed
- 1/2 upon fill
Most executive search firms offer retainers of 1/3 upfront, 1/3 after a specific period of time, and 1/3 upon fill. Because an organization’s risk is greatest upfront, TruPath chooses to reduce its partners’ initial financial burden by reducing this to 1/4.
What Type of Guarantee Does TruPath Offer?
TruPath guarantees executive placements for one year. If the candidate does not work out for any reason within the first year, TruPath will do a one-time replacement for FREE. This is an unlikely scenario, but recruiters are in the business of people! This guarantee protects the client in the unlikely scenario that a new executive is asked to vacate a recently filled role.
TruPath is a national executive search firm based on a foundation of partnership. With placements all across the U.S., TruPath recruiters excel at finding clients the right type of talent for their individual needs.