Register early and save on ERE Expo 2010 Spring in San Diego from March 15-17.

RSS feed
SOURCING Techniques and Methodologies Discussions « back to group

  • 1

    Executive Search Fees follow this discussion

    started 8 months ago by
    posted in SOURCING Techniques and Methodologies

    I am negotiating a retained search agreement with a client for a couple of C-level positions.  They are a long time customer and I've always worked with them on contingency (25%).  I want to make a competitive offer or maybe come a bit lower than the going rate.  Given the current economic times, can anyone provide current rates for retained searches?

    The company is an early stage tech firm in NYC, growing and with 2008 revenues of > $50M.

    ---------------------

    Marcelo S.

    Demand Worldwide

    5 replies

    Log in or register to post a reply.

    • 1 point 8 months ago

      Marcelo

      Considering it is a long time customer that has come back to you -despite contingency searches in the past, I am positive you have a great understanding of their business/culture fit and a decent database/research that gives you a wonderful 'headsup' over others!

      You therefore need lesser investment in time/effort -when compared to handling a similar request for a 'first time enquiry' !

      If it were me, I would discount my rates:

      1.as a retained search assignment would assure a definite hire -and help focus on the closing the position faster.

      2. 'two C level positions' would further convince my client about the value add I bring!

      3.help my client understand I am subsiding their costs in a ecosytem that needs us to strengthen our belts-especially since I am saving 'my client acquisition'/marketing costs too!!

      Cheers-In tough times, clients like to bank on quality more. Go ahead, give it your best-here is a great time to shut off competition for ever. 

      AK

      www.joboptions.blogspot.com

      www.optionsindia.com

       

    • 1 point 8 months ago

      Hi Marcelo,

      They might be taken back a bit, wondering why they did not get a discount before?

      How many placements do you make a year with them? Like Eric mentioned, maybe you could offer a volumn graduated scale.

       

      Ken

      International Biotech Resources

       

    • 1 point 8 months ago

      Charge standard 1/3 of base for first retainer and then if you feel the need to be generous you could discount the next one to 28%. I'm not sure why you'd want to start discounting an established client.  You can't put that genie back in the bottle.

    • 1 point 8 months ago

      Hi Eric,

      Thanks for your reply.  A fee of 28-30% makes sense here but these positions will likely include some form of equity in the comp package and I'm concerned about getting short changed on the fee because the base salary will be lower as a result of the equity being thrown in as part of the total package.

      How do you incorporate equity into the fee, or do you?

      Thanks in advance...

       

       

    • 1 point 8 months ago

      You can include a % of the sign-on but I would not worry about the equity.  I assume this is going to be a $100k +/- fee for you, sign the deal and get to work.  Prove you're worth it by finding the right person and getting it done.