Why you should read this
Executive search firms are an expensive way to hire talent; nevertheless they can be very valuable if used appropriately. In addition to a headline fees proposal, the terms sheet from a search firm will contain small print to check and optimise. Read on to find out what you can expect to find in it.
Search Firm Term Sheet 101
What to expect from the first agreement:
- Length of time before you can hire someone on their list without incurring a fee
- Fees for additional hires as part of a single process
- Retainer payment dates or instalment gates; particularly relevant when linked to stopping the search
- Expenses; extra costs in addition to the fees
- Minimum number of candidates on the shortlist; what constitutes one search ācycleā?
- Carve outs; what happens if a candidate introduced via another source, i.e. not found by the search firm, gets hired?
- Guarantee/warranty; what happens if the candidate leaves soon after starting?
- Off-limits; how long before that search firm will try and solicit your team to another company?
- Stopping the search; giving notice and cancellation charges
- The legal stuff; confidentiality and IP, data protection, governing law
Hereās a more detailed insight into the small print and right at the end youāll find a few engagement terms which aren't always volunteered by search firms and which are definitely worth knowing.Ā My aim is to decode the search jargon, so you understand the real impact of the terms, as well as give you some useful tips on negotiation levers.
Fees & timing of the invoices
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Additional Fees
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Definitions
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Warranties, Off-Limits and Cancellations
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Final Considerations
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