Two Executive Headhunter Payment Methods You Should Know Before Hiring Them
Most executive headhunter jakarta use two different payment methods, which are a contingency basis and retained basis. The explanation below will help you to understand which payment method you should use to pay an executive headhunter. You can also learn the differences between both methods. It will be more comfortable for you when using a headhunter service.
Executive headhunters who apply for a retained payment basis often do their jobs hands-on with the company. They have a close relationship with companies to find the most potential candidates over a specific period. This headhunter often specializes in placing upper-level management, C-suite positions, or a position with specific qualifications.
Due to their tasks, companies should pay for about 30 to 35 percent of the estimated first-year salary of the position they are looking for. In this case, headhunters offer three payment installments. As a person who hires an executive headhunter, you should pay 1/3 of the total fee once they search. Then, pay the next 1/3 of the fee at least 60 days into the search.
Your company should pay the fee off once the headhunter gives you the best headhunter. It is a beneficial payment method for the headhunter and its clients because both of them can concentrate on the process. Both of them also have a strong relationship to get the best employee.
Contingency Payment Basis
Some executive headhunters may apply the contingency payment basis. The idea of this payment method is that you pay the headhunter once they recommend the best employee. It means that you don’t have to transfer anything to the headhunter during the search process.
This method is often used by a personal headhunter. They want to ensure that clients trust them by applying this payment method. The cost is a little bit cheaper compared to headhunters that apply the contingency payment method. You only have to pay them around 20 to 30 percent of the candidate’s first-year salary.
The task of the headhunters is also the same. They have to get potential candidates for upper-level management positions or a candidate with very specific qualifications. Transfer the money once the headhunter gives you the candidate and you get a new employee who fills the position.
Choose the payment method according to your company’s condition. Retained payment method is the most popular option among professional executive headhunters. It is more flexible and both of you can focus on looking for the most promising candidate to be a new employee in the company. You can also ensure that the executive headhunter works effectively.