A recruitment fee depends on the engagement model, the seniority of the role, and the work required to reach the right people. At Valuable Recruitment, retained search is typically 10% to 15% of first-year base salary. Clients typically pay 30% to 50% at kickoff, with the balance usually due on contract signature. For several planned hires, embedded recruitment can provide dedicated capacity on a tailored monthly retainer.
This is a guide to the commercial models we offer. The exact scope, fee, payment schedule, and replacement term are agreed in writing before a search begins.
Recruitment fee models at a glance
| Model | How it is priced | Best fit | What to clarify |
|---|---|---|---|
| Retained search | Typically 10% to 15% of first-year base salary | A priority leadership or specialist hire that needs dedicated research and direct outreach | Scope, kickoff payment, balance due date, and replacement term |
| Embedded recruitment | A tailored monthly retainer | Several planned searches over a defined period | Expected hiring pipeline, capacity, review points, and whether a targeted headhunt is in scope |
| Other agency arrangements | Terms vary by provider and engagement | Roles where a different service model is appropriate | The fee basis, what the work includes, and the consequences if the hire does not work out |
How our retained search fee works
Retained search, including focused headhunting and executive search, is typically 10% to 15% of the placed candidate's first-year base salary. The exact rate reflects the seniority and complexity of the role, the search scope, and the work needed to build the right candidate market.
The calculation uses first-year base salary. Bonus, commission, equity, and benefits are excluded unless an engagement agreement expressly says otherwise.
| First-year base salary | Fee at 10% | Fee at 15% |
|---|---|---|
| $150,000 | $15,000 | $22,500 |
| $200,000 | $20,000 | $30,000 |
| $250,000 | $25,000 | $37,500 |
What a retained search includes
A retained fee pays for the work required to make a well-supported hiring decision. The exact scope depends on the brief, but it normally includes:
- Kickoff and scorecard definition. We align on the business need, outcomes, must-have evidence, and interview process before outreach starts.
- Market mapping and direct outreach. We identify and approach people who are not actively applying, including relevant passive candidates.
- Structured assessment. Candidates are assessed against the agreed scorecard, not just their CV or title history.
- Written candidate briefs and process management. Shortlisted candidates come with relevant evidence, and we keep interviews, feedback, and offers moving.
- References and offer support. The final process includes the appropriate reference work and support through contract signature.
Payment stages
Clients typically pay 30% to 50% of the agreed fee at kickoff. This starts the calibration, market mapping, and outreach work. The balance is usually due on contract signature.
The written engagement agreement confirms the exact payment dates and any role-specific scope. It should also state whether a search is confidential, which stakeholders will make the decision, and what happens if the brief changes materially.
When embedded recruitment is the better model
Embedded recruitment is a tailored monthly retained engagement for a company with several planned searches. It gives the business consistent recruiting capacity and a shared process across roles, rather than treating every hire as an isolated search.
The engagement can include a targeted headhunt where the role and the hiring pipeline call for it. Scope, capacity, and review points are agreed to match the planned work. This is especially useful when the hiring plan is likely to change as the company grows.
Replacement terms
Retained searches include a 3 to 6 month replacement period where a candidate does not work out because of poor performance or culture alignment. The duration and replacement process depend on the seniority and complexity of the role and are confirmed in the engagement agreement.
Questions to ask before signing
- Is the fee based on first-year base salary, and what is excluded?
- Who will run the search and what evidence will be included in the candidate brief?
- What is paid at kickoff, and when is the balance due?
- What does the replacement period cover, and how long does it run?
- For multiple hires, would a tailored embedded engagement better match the pipeline?
For a fee proposal tied to your role and hiring plan, book a 30-minute founder call or send a brief. You can also review our published recruitment fees.
