search fees must be performance based_plenum group
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Too many firms have experienced a search firm that charged extortionate retained fees and delivered nothing in return. So is there a better way to approach this?TRANSCRIPT
www.theplenumgroup.com
Plenum 2014 – Financial Services Executive Search
Why Search Fees Must Be Performance Based
Too many firms have experienced a search firm that charged extortionate retained fees and delivered nothing in return. However most senior hiring managers understand that you cannot engage a professionally minded organisation to work on your behalf without offering any security that they will receive payment for the work done. Performance only “contingency” fees sounds like a great idea, but this arrangement normally results in recruiters understandably sharing limited resource across a high number of clients. This rarely serves the best interests of the hiring firm. So is there a better way to approach this? At Plenum we believe so. We believe that a search firm that values its time and network requires some downside protection, but should ultimately receive the vast majority of its revenue only on successful delivery. This is why we advocate minimal up-front retained payments in favour of a success fee. This means the vast majority of the payment is then released only on successful placement and you pay for results, not promises. To discuss how this approach could work for your organisation please get in contact.
TC Jefferson [email protected]
Janeshree Naidoo [email protected]
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