At AMC we have deep insides and active network with the different industries to locate talent at middle, Sr. and C levels. Connecting great companies with great people is also part of our business. Our clients range from Fortune 500 corporations, to mid-sized public and privately-held companies to entrepreneurial startups.
There are many ways in which AMC can help a company in their search for talent – from a very targeted search to referrals of likely candidates to consultative needs based on our experience. Below, we’ve provided an example of a particular position and potential costs involved. However, AMC would like to have a conversation with your company Human Recourses department and learn what your needs are, before we can provide more exact costing.
And after successful hiring we monitor and guide the candidate ongoing on his/her development in the new role in communication and reviews with the company’s management.
Ask for information and quotation and provide us with following: your company information and culture, comprehensive Job description , other hard and soft skills requirements and the package on offer to enable us to make you a initial quotation for our retained executive search service.
The question that always comes up when discussing an executive search with a potential client is, “How much will this retained executive search cost us ?”
At AMC, our Retained Search fees are based on a percentage of the expected starting salary of the successful candidate. Let’s say you are a company with annual revenues of approximately 50 million and are looking to replace your current COO who will be retiring in 6 months. The current COO is currently making a base of $225k, plus a bonus ranging from 10-40% of his/her base salary. Your current COO has been with your organization for over 15 years and has been a significant contributor to your firm. Over the years, besides overseeing your operations department, he/she is the driver of many projects . It is recognized that the incumbent’s compensation package has grown not just because of his/her contribution to the firm, but also their longevity and loyalty.
Will the new COO be responsible for the same as the incumbent or will they have less responsibility? This decision will affect the experience level of the prospective COO and correspondingly affect the compensation package.Let’s assume it is determined that the compensation range for an appropriate candidate would be a base salary of $150-170k with a bonus of up to 25%.
AMC’s search fees are based on a percentage of the expectant starting base salary (the bonus does not enter into the computation). A non-refundable retainer is due upfront of approximately 25% of the expectant fee is payable upon signing the search agreement with AMC.
The typical fee percentage ranges from 30% to 35% depending on the complexity of the search, level of position required and commitment to hiring. Based on the factors listed in the example above, this search would warrant a percentage of 32.5%.
The range of the expected starting salary for the example given above is $150-170k, or an average of $160k. Therefore, the expectant fee will be $52k. ($160k x 32.5 = $52k) A non-refundable retainer of $13.000 would be due before the start of the engagement. ($52k x .25 = $13K). No other payments would be due until the search is completed. After the successful candidate is selected, the remaining $39,000 would be due upon the candidate’s contract signing date.
In addition, any reasonable direct expenses incurred during the search such as travel and lodging of the candidate or AMC consultant will be billed at cost. If it is a local search, there are typically no direct expenses.
Specific requests for criminal, credit or any other background checks must be made in writing by the client’s representatives and will be billed separately at cost plus 15% handling and admin fee. Usually, the client has set internal procedures for criminal & background checks and they use their own resources for these tasks.
If during the search, circumstances cause the client to put the search on “hold”, it isn’t a problem. The search will resume when the client indicates they are ready to continue. There will no adjustments to the original agreement. This assumes that there are no “major” changes in the position description, expectant compensation package and scope of the search. The fee may change if the expectant salary range increases or decreases significantly more than >10% up or down.
Change orders are acceptable. It is not unusual for a client to refine what they are seeking during the search process. Sometimes a client will decide that they want to add additional responsibilities to the position. Sometimes a major change to the original specifications is required. This may be caused by market conditions, events at the company, etc. For example, if a company was originally seeking an Head of operations, but decided they needed a COO instead, then an appropriate adjustment to the fee structure would be warranted. Any previously paid retainer would be credited to the new fee structure.
AMC guarantees our work. If a candidate is not performing to expectations or leaves on their own within a period of three to six months after their start date, AMC will find a replacement candidate for no additional fee other than additional incurred out of pocket expenses. Depending on the nature of the position, this guarantee period will standard last three to maximum six months after the start date of the initial hire.
This guarantee does not cover dismissal of candidate or elimination of a position for either budgetary or operational reasons (applies also during the probation period). This placement guarantee is subject to AMC timely having received full payment of all prior invoices.
your company information and culture, comprehensive job description , other hard and soft skills requirements and the package on offer to enable us to make you a initial quotation for our retained executive search service.Contact Us