The search fee is the smallest number in the equation.
Most companies have no idea what executive search costs. The numbers are not public. The models are unfamiliar. Here is exactly what to expect — and why the fee is the least expensive part of the decision.
Two pricing models
Retained search
Fee: 25% to 33% of the placed executive’s first-year cash compensation.
Payment schedule: Typically one-third at engagement, one-third at shortlist, one-third at acceptance or start date.
What you get: A dedicated, proactive search process. Market mapping. Passive candidate identification and outreach. Structured evaluation. Confidential management of the entire process. A 12-month guarantee with replacement provision.
Best for: CHRO, VP HR, and specialized HR leadership roles where passive candidate access and evaluation rigor matter.
Contingency recruiting
Fee: 20% to 25% of first-year compensation, paid only upon successful placement.
What you get: Access to the recruiter’s active candidate network. No fee unless a hire is made.
Limitations: The ideal CHRO is not in anyone’s active candidate network. Contingency recruiters are not incentivized to map the passive market for a role they may not fill. For executive roles, the model creates a structural mismatch.
Best for: Roles where active candidates are acceptable and speed is the primary driver.
Sample fee ranges
| Role | Typical compensation | Search fee (25% to 33%) |
|---|---|---|
| CHRO / CPO (Fortune 1000) | $350,000 to $600,000+ | $87,500 to $198,000+ |
| CHRO / CPO (Mid-market) | $250,000 to $400,000 | $62,500 to $132,000 |
| VP HR | $200,000 to $350,000 | $50,000 to $115,500 |
| HR Director | $150,000 to $225,000 | $37,500 to $74,250 |
| Specialized HR VP / Director | $175,000 to $300,000 | $43,750 to $99,000 |
Flexible engagement models
Not every search requires a full retained engagement. We offer flexible models based on the role, the situation, and the client:
Full retained search. For CHRO, VP HR, and executive-level searches. Comprehensive process with dedicated resources, market mapping, and structured evaluation.
Project-based search. For HR Director and specialized roles with defined scope and timeline. A focused search with clear deliverables and milestones.
Milestone-based engagement. Pay at defined milestones — discovery, shortlist, placement. The model matches the role.
Additional costs
Candidate travel for interviews, executive assessments ($500 to $5,000 per candidate if used), and background checks ($500 to $2,000). Relocation costs are separate from the search fee.
The 12-month guarantee
If the placed executive departs for any reason within 12 months, we conduct a full replacement search at no additional professional fee.
The number that matters
A failed CHRO hire costs an estimated 10 to 20 times the search fee. Severance. Replacement search. Lost productivity. Cultural damage. Compliance exposure. The cascading impact of bad hiring decisions made under weak HR leadership.
A $300,000 CHRO search at 25% to 33% costs $75,000 to $99,000. The same role, hired poorly, costs $3 million to $6 million.
The search fee is approximately 2% to 3% of the cost of getting it wrong.
How to compare proposals
Is the fee calculated on base salary only or base plus target bonus? What is the payment schedule? What are the guarantee terms — duration, conditions, and replacement process? Are expenses included or billed separately? Who runs the search day-to-day, and what is their specific HR recruiting experience?
Want a tailored estimate for your search?
Schedule a Confidential Consultation