Executive search and headhunting fees typically run between 10% and 33% of a candidate's first-year base salary. The range is wide because the models differ significantly, and so does what you get for the money. This guide breaks down what each model costs, what you are actually paying for, and when executive search is worth the price.
The Two Main Fee Models
Retained executive search
You pay in stages, regardless of outcome. The typical structure is three equal instalments: one-third upfront when the search starts, one-third at shortlist delivery, and one-third on placement. The total fee is usually 25% to 33% of first-year base salary at large global firms.
Retained search is used for C-suite and senior leadership roles, searches requiring extensive market mapping, and situations where confidentiality is critical, such as replacing a sitting executive. You are paying for exclusivity, dedicated research capacity, and the firm's full commitment to the search regardless of how long it takes.
The risk is that you pay even if the search does not result in a hire. Most retained firms will give you a credit or restart the search if the placement does not work out within the first 90 days, but the upfront money is committed.
Contingency search
You pay only when you hire the candidate the recruiter places. Fees are typically 15% to 25% of first-year base salary, paid as a single invoice after the candidate starts. No placement, no fee.
Contingency works for mid-level and specialist roles where the recruiter can work multiple searches simultaneously and the candidate pool is accessible without deep market mapping. Because the recruiter is only paid on success, they carry the financial risk of the search.
The trade-off is commitment. A contingency recruiter working multiple live searches will naturally prioritise the roles most likely to close quickly. Your search may not receive the same focus as a retained engagement.
Hybrid models
Some firms use a hybrid structure: a smaller engagement fee paid upfront to secure the search, with the remainder due on placement. This aligns the firm's incentives with the outcome while giving you more commitment than a pure contingency arrangement.
Typical Fee Ranges by Role Level
These are ballpark ranges for UK and US markets in 2026. Actual fees depend on the firm, geography, and search complexity.
| Role level | Typical base salary | Fee at 15% | Fee at 25% |
|---|---|---|---|
| Senior Manager / Director | $100K – $150K | $15K – $22.5K | $25K – $37.5K |
| VP / Head of Function | $150K – $250K | $22.5K – $37.5K | $37.5K – $62.5K |
| C-Suite (CEO, CFO, CMO) | $250K – $500K+ | $37.5K – $75K | $62.5K – $125K+ |
What the Fee Covers
A well-structured executive search fee is not a finder's fee for locating a name. It covers a defined set of activities that, done properly, take significant time and expertise.
Market mapping. Identifying the full universe of candidates who could fill the role, including people who are not actively looking and who will never appear on a job board. This typically means reviewing 50 to 200 profiles before any outreach begins.
Direct approach. Reaching out to passive candidates is a different skill from posting an ad and screening applicants. Senior candidates who are not on the market need a reason to have a conversation. The quality of that outreach determines whether you get access to the best people in the market or only those who were already looking.
Structured assessment. Evaluating candidates against a defined scorecard for the role. This includes competency-based interviews, reference checks, and a written brief on each shortlisted candidate.
Process management. Coordinating the interview process, managing candidate expectations, handling offer negotiation, and keeping the search on track. A poorly managed process at offer stage costs you candidates.
Guarantee period. Most search firms offer a replacement guarantee if the placed candidate leaves within 90 days. This is part of what the fee is paying for, not a free add-on.
What the Fee Does Not Cover
Worth being explicit about what is typically excluded from an executive search fee.
- Advertising costs. If the firm posts the role on job boards, that cost is usually passed through separately.
- Assessment tools. Psychometric or skills testing tools are often charged separately if used.
- Travel and expenses. For in-person meetings, site visits, or international searches, expenses may be invoiced separately.
- Candidate relocation. The search firm does not cover relocation costs. That sits with you.
What Valuable Recruitment Charges
Our fees are published on the site. We operate two models:
Headhunting is priced at 10–15% of the placed candidate's first-year base salary. The rate depends on search complexity and the quality of the brief. Straightforward mid-senior searches — Growth Lead, Performance Marketing Lead, RevOps Lead, Head of Marketing — typically sit at the lower end. More complex searches with multiple stakeholders or niche profiles run at 13–15%. Both retained and contingency structures are available. Fees are agreed before any work begins.
Executive Search is priced at 15–20% of first-year base salary. All executive search engagements are retained. The model is designed for C-suite, VP, and director-level hires where the cost of a wrong decision is high and the search requires deeper stakeholder alignment and assessment.
For a Head of Marketing at $150,000 base: our headhunting fee would be $15,000 to $22,500. Our executive search fee would be $22,500 to $30,000. Both models include a standard rebate period. See our headhunting fees and executive search fees for the full breakdown.
When Executive Search Is Worth the Cost
The question is not whether the fee is large. It is whether the cost of not finding the right person is larger.
Executive search makes clear financial sense when:
- The role has significant revenue or cost impact. A Head of Growth who can move your pipeline by 20% makes the fee irrelevant in the first quarter. A poor hire who takes six months to identify and exit costs you the fee plus the opportunity cost plus the exit cost.
- The candidate pool is passive. The best performers in most senior roles are not looking. They need to be found and approached directly. Job boards and internal referrals do not reach them consistently.
- Confidentiality is required. Replacing a sitting executive, making a hire before a strategic pivot, or searching without tipping off competitors requires a level of discretion that open advertising cannot provide.
- You have already tried other approaches without success. If you have been searching for three or four months through internal efforts and contingency recruiters without finding the right person, the cost of continuing the wrong way exceeds the cost of a retained engagement.
When Executive Search Is Not Worth the Cost
Executive search is not right for every hire.
- The role is mid-level and the candidate pool is large and accessible. Contingency search or direct sourcing is more cost-efficient.
- You have a strong internal TA function that can run a structured search. Executive search adds most value when that capability does not exist in-house.
- The timeline is very short. A retained executive search typically takes eight to sixteen weeks end to end. If you need someone in three weeks, a retained process will not serve you.
How to Evaluate Whether a Firm's Fee Is Fair
The percentage is only part of the picture. What actually matters is whether the firm can access candidates you cannot find yourself, whether they will evaluate them properly, and whether they have the judgment to tell you when a candidate is not right even if it means losing the fee.
Questions worth asking before signing:
- Who specifically will run the search? At larger firms, you may be sold by a senior partner and serviced by a junior associate. At a boutique firm, the person you meet is usually the person running your search.
- What does the shortlist look like? Ask to see a sample brief or scorecard. It tells you immediately whether the firm is doing real assessment or just forwarding CVs.
- What is the guarantee structure? 90 days is standard. What constitutes a qualifying event if the hire leaves?
- What is the replacement process if the guarantee is triggered? Starting a search from scratch is different from presenting one alternative candidate.
Frequently Asked Questions
What percentage do executive search firms charge?
Most executive search firms charge between 15% and 33% of first-year base salary. Large global retained firms typically charge 30% to 33%. Boutique and specialist firms often charge 15% to 20%. Contingency recruiters typically charge 15% to 25%, payable on placement only.
Is the fee based on base salary or total compensation?
Most firms base the fee on base salary only. Some, particularly for C-suite roles with large variable components, negotiate a fee based on total target compensation. Clarify which basis applies before signing.
What is the difference between contingency and retained search?
Contingency: you pay only if you hire the candidate the recruiter places. Retained: you pay in stages regardless of outcome, starting with an upfront retainer. Retained search delivers more commitment and exclusivity. Contingency search carries less financial risk upfront but typically less dedicated focus.
Can you negotiate executive search fees?
Yes. Most firms have flexibility, particularly on longer contracts, repeat business, or multi-role engagements. The engagement fee versus success fee split is often more negotiable than the total percentage.
What is the typical executive search timeline?
A standard retained executive search takes eight to sixteen weeks from briefing to placement. Boutique and specialist firms working focused vertical searches can often compress this significantly. At Valuable Recruitment, we deliver the initial shortlist in under ten days.
Do you have to pay if the search is unsuccessful?
In a retained model, yes. The upfront retainer is paid regardless of outcome. Most firms will credit or restart the search if they cannot find a suitable candidate within a defined period. In a contingency model, you only pay on successful placement.
If you want to discuss what a search would cost for your specific role, book a free 30-minute call or send a brief and we will come back to you within one business day.
