What the UK market charges
Retained search sits at 25 to 33 per cent of first-year earnings, billed in thirds. Contingency runs 15 to 25 per cent, paid on placement. VAT is on top of both.
On a £150,000 seat that is a fee between £37,500 and £49,500 retained. The variation inside that band is driven more by the difficulty of the mandate than by the prestige of the firm.
The three tiers, and what they are for
| Typical fee | Best for | |
|---|---|---|
| Global firms | Top of 25 to 33 per cent, plus expenses | Board mandates, multi-country, heavy assessment |
| Mid-market and boutique | 25 to 33 per cent | One seat, one sector, partner-led |
| Contingency agencies | 15 to 25 per cent | Visible markets, speed, volume |
What is specific to hiring here
- Notice periods. Three months is standard at executive level and six is common in financial services. A twelve-week search plus three months notice is half a year from decision to desk.
- Restrictive covenants. Non-competes are more enforceable against senior people in the UK than most hiring managers expect. Ask about them at first interview, not at offer.
- IR35 does not apply to a permanent hire, but it does shape the alternative. If you are weighing an interim or fractional route, the status question belongs in that comparison.
- Employer National Insurance and pension add roughly fifteen per cent and upward to the salary before anybody has done a day of work. Budget the seat, not the salary.
Before you shortlist firms
Write the target company list first, yourself. Then ask each firm which of those they cannot approach. You will learn more from the differences in those answers than from any credentials meeting.
Questions
- What do UK executive search firms charge?
- 25 to 33 per cent of first-year earnings for a retained search, billed in thirds, plus VAT. Contingency is 15 to 25 per cent, paid only on a placement.
- How long does an executive hire take in the UK?
- Eight to twelve weeks of search, then notice. With three-month notice periods standard at this level, six months from decision to start is a realistic plan.