Is Executive Search Worth 30% Fees?

This is the preferred approach adopted as standard by many blue chip clients, as they believe it's efficient and discreet.

What they don't know, is how a lot of recruiters actually operate in this market.

The first big difference is the fee scale.

It's usually 30% of commencing salary, with the fee becoming payable in stages.

You pay 30% of the estimated total upon acceptance of the assignment by the recruiter.

The next 30% is payable upon presentation of the shortlist.

The final instalment is payable upon acceptance of the job.

This is a very risky proposition, with 60% of the fee being paid before there is any result. And there are no guarantees of success.

The way Executive Search works is usually that a very polished sales person comes along and takes details of your vacancy. This person is rarely the recruiter who will handle your assignment.

He or she will then pass those details on to a "researcher", whose job it is to identify candidates who might be interested in the position.

Sometimes the researcher is not even employed by the agency and can be a completely different firm altogether. Sometimes, they aren't even based in this country, but could operate from a call centre in India or Bulgaria.

Research takes many forms, but in the main, it involves searching the existing candidate database, or looking at the agency's existing client base for an existing client who might be interested in the role.

There's a very good commercial reason for that. Can you think what it might be?

After the research is done and a few candidates have been identified and flattered by having an out of the blue approach made, it's time for a recruiter to make an appearance and make arrangements for interview.

From here on in, it's pretty much like a normal recruitment service that you'd expect from any recruitment agency.

The difficulty comes in actually closing the sale and making sure that the candidate will accep the position on offer.

The reason that this is difficult is because in many cases, the candidate wouldn't have been looking for an alternative position and therefore needs to be sold on the position a lot harder.

At this stage, you're extremely vulnerable to the "buy back", where the existing employer, understanding the cost of recruitment, offers the candidate a better remuneration package to stay.

As I said at the start, executive search is risky and costly.

There's a better way. I'll show you and it won't cost you anything in up-front fees, so there's no risk.

Call me, David Carter, on 01564 824554 or 07800 790427.