• I’m Hiring
    • Our Recruitment Services
    • Recruit By The Week
    • Hire the Best Virtual Assistants
      • Hire Your Own Virtual Assistant

        V.A. Hiring Guides

        How to hire a virtual assistant?

        10 types of virtual assistant

    • Recruitment Process Outsourcing Services
      • Recruitment Process Outsourcing (RPO)

        Guides to RPO

        Types of RPO

        How does RPO help in high-volume recruitment?

        Understanding the costs of a recruiter

    • Retained Executive Search
      • Retained Executive Search

        Insights & Guides:

        Retained Search vs. Contingency Search

        Benefits of retained recruitment to corporations

        Payment structures for executive search services

    • Find Healthcare Candidates for Your Team
      • Healthcare Recruitment

        Healthcare Recruitment Guides

        Top Telemedicine Services to Try

        Healthcare Pioneers and their extraordinary contributions

  • I’m a Job Seeker
    • All Jobs
    • Healthcare Jobs
    • Accounting Jobs
    • Legal Jobs
    • Hospitality Management Jobs
    • Jobs with Family Owned Businesses
    • New Candidates
  • Blog
    • All posts
    • Posts on Talent Sourcing and Recruitment
    • Recruitment Process Outsourcing Guides
    • Retained Executive Search Posts
    • Virtual Assistant Posts
    • Career Insights and Advice
  • Get to Know Us
    • Who We Are
    • Our Specialized Staffing Philosophy
    • Contact Us
  • 1-877-411-4358
My cart

No products in the cart.

  • I’m Hiring
    • Our Recruitment Services
    • Recruit By The Week
    • Hire the Best Virtual Assistants
      • Hire Your Own Virtual Assistant

        V.A. Hiring Guides

        How to hire a virtual assistant?

        10 types of virtual assistant

    • Recruitment Process Outsourcing Services
      • Recruitment Process Outsourcing (RPO)

        Guides to RPO

        Types of RPO

        How does RPO help in high-volume recruitment?

        Understanding the costs of a recruiter

    • Retained Executive Search
      • Retained Executive Search

        Insights & Guides:

        Retained Search vs. Contingency Search

        Benefits of retained recruitment to corporations

        Payment structures for executive search services

    • Find Healthcare Candidates for Your Team
      • Healthcare Recruitment

        Healthcare Recruitment Guides

        Top Telemedicine Services to Try

        Healthcare Pioneers and their extraordinary contributions

  • I’m a Job Seeker
    • All Jobs
    • Healthcare Jobs
    • Accounting Jobs
    • Legal Jobs
    • Hospitality Management Jobs
    • Jobs with Family Owned Businesses
    • New Candidates
  • Blog
    • All posts
    • Posts on Talent Sourcing and Recruitment
    • Recruitment Process Outsourcing Guides
    • Retained Executive Search Posts
    • Virtual Assistant Posts
    • Career Insights and Advice
  • Get to Know Us
    • Who We Are
    • Our Specialized Staffing Philosophy
    • Contact Us
  • 1-877-411-4358
My cart
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Home » All Blogs » Understanding the Types of Payment Structures of Executive Search Services

Understanding the Types of Payment Structures of Executive Search Services

03-19-2024 | By Devore Recruiting Blog Posts

Understanding the Types of Payment Structures of Executive Search Services

When choosing a firm to fill a leadership position, consider two types of executive search firms: retained and contingency firms.

Retained Executive Search Firms:

Retained executive search work on contracts and charge clients a fee upfront for their exclusive services. This fee guarantees a strong effort to find the best candidate, with payments usually spread out during the search. Known for their thoroughness and comprehensive candidate assessments, retained firms prioritize quality and long-term fit for executive roles.

  • Dedicated Commitment: The upfront fee ensures a dedicated commitment to finding the ideal candidate, as the firm’s revenue is not dependent solely on successful placements.
  • Thoroughness: Known for conducting comprehensive candidate assessments, leading to higher-quality hires and long-term fit for executive roles.
  • Exclusivity: Clients receive exclusive access to the firm’s services, with a focus on personalized attention and tailored solutions.

Contingency Executive Search Firms:

Contingency search firms focus on filling mid to lower-level positions with lower pay than executive roles. This reflects their payment structure, as they receive compensation based on the new employee’s first-year earnings. Typically, these jobs have lower first-year earnings. Contingency firms mainly concentrate on mid to lower-level positions. They do this to handle multiple searches simultaneously. By doing so, they increase their chances of successful placements and ultimately make more money. Additionally, these firms may specialize in specific industries or niche markets, leveraging their expertise to source candidates efficiently for roles at various organizational levels.

  • No Upfront Cost: Contingency firms operate on a “no win, no fee” basis, requiring no upfront payment from clients.
  • Compensation Upon Success: They receive compensation only upon the successful placement of a candidate.
  • Handling Multiple Assignments: These companies often work on multiple tasks simultaneously. They focus on filling mid-level management roles and positions with numerous job openings.
  • Flexibility and Prioritization: While offering flexibility, contingency firms may prioritize assignments with higher chances of success.

Fee Structures of Executive Search Providers

Typically, retained search firms charge fees amounting to approximately 30 to 33% of the anticipated first-year salary of the successfully placed candidate. Retained executive search firm fees are commonly divided into three installments:

Retained Executive Search Firms

  1. The initial payment, constituting one-third (1/3) of the total fee, is made to initiate the search process.
  2. The second installment is typically paid around 60 days into the search.
  3. The final payment is settled upon the successful hiring of the chosen candidate.

Contingency Executive Search Firms

These firms typically charge approximately 20-30% of the candidate’s first-year salary. However, since they only receive payment upon successful completion of the search and hiring of the candidate, companies must maintain regular communication with the search firm and demonstrate a strong commitment to seeing the process through to the end.

To fully understand the costs of executive search, read this blog: How Much Does Executive Search Cost?

– –

Both retained and contingency executive search companies cater to businesses seeking top talent. Retained firms prioritize exclusivity and thoroughness for executive roles. In contrast, contingency firms offer flexibility and speed for mid to lower-level positions. Understanding these differences helps organizations make informed decisions when partnering with executive search firms.

To fully understand how the process of engaging retained executive search specialists works read this blog:

The Process of Engaging Retained Executive Search Specialists


Advertisement: Our Retained Recruiting Program is designed to provide unparalleled expertise and dedication in identifying and securing top-tier executives who will drive your company towards success. Contact us for more details or fill up the form below for any questions.

Tell us what you think

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Primary Sidebar

Search for a blog topic

Featured Articles:

The Power of Diversity - Hiring Strategies, Best Practices, and Long-Term Success

The Power of Diversity Hiring: Strategies, Best Practices, and Long-Term Success

10-17-2024

How to Improve Your Background Check on Job Candidates

How to Improve Your Background Check on Job Candidates

10-03-2024

Top Challenges in Healthcare Staffing and their Solutions

Top Challenges in Healthcare Staffing and their Solutions

09-17-2024

Browse by Categories:

  • All Blogs (83)
  • Career Insights and Advice (8)
  • Employee Recruitment & Talent Acquisition (49)
  • Exploring New Career Opportunities (14)
  • Others (4)
  • Recruitment Process Outsourcing (RPO) (8)
  • Remote Hiring & Virtual Recruitment (8)
  • Retained Executive Search (8)
  • Virtual Assistant (5)

De Vore Testimonials

★ ★ ★ ★ ★ Rated 5 out of 5 stars

"We were fortunate to use De Vore Recruiting to find our new receptionist. Sean is realistic with explaining how the process works. He and Kim were always very professional wiht their daily updates. We were able to hire rather quickly and they found us an excellent, quailified employee."

Tracy Williams April 18, 2024
★ ★ ★ ★ ★ Rated 5 out of 5 stars

"After many years in management and searching for employees and going through resume after resume just to find the one, I found De Vore. My experience has been nothing short of amazing. They are very responsive and found me quality candidates in a very timely manner. Working with them took so much stress off of me and I felt like they really had my best interest at heart. I will now use them for all of my hiring needs!"

Stacy Westfall June 9, 2022
★ ★ ★ ★ ★ Rated 5 out of 5 stars

"Bita is EXACTLY what our facility needs. We have been working for a while at changing our image. She has joined us at precisely the right time. She is knowledgeable (extremely), hard working and committed to Quality Care. Because she is new, some leadership is challenging her, but she can handle it. The licensed nurses and CNAs LOVE her. She already has had a very positive impact. I am extremely grateful"

Michael Chen June 12, 2020
★ ★ ★ ★ ★ Rated 5 out of 5 stars

"I am extremely satisfied with De Vore Recruiting. Sean and Kimberly are great. Kimberly always checked up on me to see how my interviews went follow up with me and kept me updated. She definitely worked hard for me I can say I'm definitely lucky thank you so much once again. :)"

Emily Rodriguez August 18, 2020

Footer

De Vore Recruiting Logo
  • Who We Are
  • Our Specialized Staffing Philosophy
  • Read Blogs
  • Contact Us
  • Accessibility

Follow us on Socials:

  • Facebook
  • Instagram
  • X
  • LinkedIn

Recruitment Services Offered

  • Recruit By The Week
  • Recruitment Process Outsourcing Services
  • Retained Executive Search
  • Hire the best Virtual Assistants
Copyright © 2025 De Vore Recruiting | All Rights Reserved