Retainer Placements

Description

This is an upfront fee charged to our clients for access to the recruitment services.

It could be based on a time period (e.g., annually, semi-annually) or for a specific job posting.

Undertaking a retained search assignment involves engaging in a form of exclusive search. In order to secure our services, the client must pay an upfront retainer fee. The retainer fee is commonly assessed as a percentage of the employee’s first-year salary.

During the search process, the client will compensate us with two or three more payments. Compensation is due upon hiring of the candidate by the client. There are instances where the client may decide to pay a third installment upon receiving a shortlist or at another momentous phase in the recruitment process. The standard payment scheme entails a percentage of the first-year salary.

Assuming the position requires a first-year salary of $75,000, for example, our client has consented to the terms of our contract, which stipulate an upfront retainer of 5% of the first-year salary, followed by an additional 10% upon presentation of a shortlist and a further 10% upon the hiring of a candidate. The payment obligation of our client includes $3,750 to be paid at the outset, $7,500 upon provision of the shortlist, and $7,500 upon selection of the candidate. The amount payable by the client would be $18,750, which is 25% of the first-year salary.

A retained search assignment generally yields a higher fee percentage compared to a contingency agreement. The lengthier duration of retained searches is the cause of the increase in total rates.