We are an engaged search firm. That means we are comfortable on a pay for performance schedule, but also respect and value our time and expertise. You pay an upfront engagement fee to secure our time, focus, energy, and resources. When we deliver the right person, the remainder of the placement fee is due.
Typically the entire placement fee is 25% of the expected first year’s compensation. The engagement fee required to start the search is around 15% of the anticipated fee, with a minimum of $3,000 and a maximum of $7,500. In cases of very difficult searches the engagement fee can be up to 25% of the expected fee. However we haven’t had a situation like that yet, so plan on $7,500 being the max engagement fee.
$175,000 position ($140,000 base with $35,000 in incentive compensation likely to be earned)
- Anticipated total fee of $43,750
- Engagement fee would range from $7,500 to $10,937.50
It would likely break down to:
Engagement Fee: $7,500 (Flat engagement fee, unless search is unusually challenging)
Placement Fee: $36,250 ($43,750 – $7,500 = $36,250)
Total Cost: $43,750.00 (25% of the expected compensation)
So a $100,000 package would have a $25,000 total cost, and a $200,000 package would have a $50,000 total cost.