success based recruitment Search fee

While recruitment fees can be expensive; success based recruitment search fee used by NextGen are fair and realistic.  Most retained search firms you pay 1/3 three times based on total cash compensation.  

Very large search firms with hundreds of recruiters often don’t place actual hires. They are often selected due to global firm name recognition.  It’s also a common revolving door of new recruiters to replace those who left. And you pay a full fee regardless of delivery.


You receive undivided attention, high level of interaction and search transparency, and a solid screening process. Two-thirds of our success based recruitment search fee is paid according to delivery / meeting milestones and the hire, therefore performance based search fees are used. 

Boutique retained search firms like NextGen Global Executive Search serve four high tech industries, including aerospace and industrial power systems,  medical devices and Internet of Things connected devices, data, mobile networks, and wireless IoT security.

Let’s Compare Fees

Contingency Search Firms & RPOs

  • Lack of focus as each recruiter works on 15-25 searches at a time
  • Sendouts quota requires same candidates sent to your competitors
  • Lacks in-depth interview / screening documentation
  • Lacks expertise and rolodex to effectively conduct VP / CXO level searches
  • Heavy use of job boards = less desirable active job seekers
  • Overseas based recruiters often have broken English & poor grammar
  • Average 1-3 months’ refundable warranty on placements

Large & Typical Retained Search Firms

  • Mysterious percentage fees based on total cash compensation
  • Additional invoices for search & office related expenses
  • Entire fee is paid regardless of performance, delivery, and hire
  • One-way behavioral assessments fail to predict team dynamics
  • Often lacks intimate knowledge & experience in YOUR industry
  • Average retention rate is much lower than expected
  • Average 3-6 months’ replacement guarantee

NextGen Executive Search

  • Success based fees on meeting deliverables
  • NO hidden fees, NO search or office related expenses
  • 2nd & 3rd invoices based on face-to-face interviews and the hire
  • Search strategy is approved by client with 24/7 transparent access
  • Behavioral assessments reveal both TEAM & ROLE fit analysis
  • Custom Onboarding Tools for longer retention and faster productively 
  • Full one-year replacement guarantee

Why Success Based Recruitment Search Fee is Better

success based recruitment search fee

1. Traditional retained search fees are normally established by the candidate’s first-year compensation. The problem with this model is the potential it lends for recruiters to find candidates based solely on the incentive they will receive – a system that undermines firm-client loyalty and encourages disloyalty within the search process.

2. Success based recruitment search fees, on the other hand, are based on the delivery of identifying and effectively screening potential candidates’ skills and experiences, documenting accomplishments, benchmark their “role fit” to address the position’s challenges, and utilizing behavioral-based assessments to determine if they’re an ideal “team fit.”

3. The performance based fees aka success based methodology results in the delivery of “A” players who meet and often exceed the role’s performance objectives. A flat fee is charged based on the difficulty of the search, but it’s agreed upon prior to performing the search. It’s easy to see how this protects our clients – there are no surprise costs. With no room to inflate the fee, our industry-leading one-year replacement guarantee is a win-win for our clients.

Performance Based Recruitment Fees – Service Features

Key Succession Search

Flat Fee Varies

  • Confidential search for BoD / CXO or S/E-VP
  • Benchmark external vs. internal talent
  • Retiring executive or change in leadership
  • Aligns with long-term succession planning


Retained Executive Search

Minimum $50k Flat Fee

  • Powered by Leadership Vault platform
  • Identify, Recruit, Assess “A” players
  • Success based recruitment search fee  – no hidden costs
  • One-year replacement guarantee


Key Talent Alert

For existing clients only

  • Ideal for Lead Engineer / RSM / SCM
  • Only candidates with strong role & team fit
  • Uses Leadership Vault platform
  • Half the cost of contingency search fees

Key Talent Alert