How much does it cost to hire a headhunter?
How much does it cost to hire a headhunter?
20% – 35% of first-year salary
Average headhunter fees
If you're considering hiring top talent or seeking a new position, it's natural to ask: How much does it cost to hire a headhunter? Most headhunter fees range from 20% to 35% of the candidate's first-year salary, but some may charge as low as 15% or as high as 45% depending on market, expertise, and the complexity of the search.
| Category | Average fee | Roles |
|---|---|---|
| Mid-level positions | 20% – 25% | Managers; directors; specialists |
| Senior-level positions | 25% – 35% | Executives; VPs; C-suite leaders |
Mid-level positions: Headhunters charge 20% to 25% for department managers, skilled specialists, and strategic directors. These searches target professionals with hands-on experience and mid-tier leadership skills.
Senior-level positions: Fees range from 25% to 35% for top executives, VPs, and C-suite hires. Searches include discreet outreach, competitive negotiation, and rigorous assessments for leaders who shape company strategy.
Headhunter fees can reach 45% or more for ultra-competitive markets, confidential searches, hard-to-fill roles, or when hiring timelines are urgent.
What is a headhunter?
A headhunter is a specialized recruiting professional or agency that helps companies find and attract top-tier candidates for executive, senior-level, or highly skilled roles. Headhunters seek out qualified individuals even if they're not actively looking for a job, using their industry networks and research skills to find potential hires for hard-to-fill or confidential positions.
What do headhunters do?
Headhunters perform several tasks for their clients, including:
Researching industries and companies to identify potential candidates
Directly approaching experienced professionals, often those not actively looking for new jobs
Screening resumes and conducting initial assessments
Coordinating interviews, reference checks, and background verification
Advising on competitive compensation and negotiating job offers
Managing confidential searches for leadership or strategic positions
Cost of headhunter services
Headhunter fees for executive and senior roles use structured models that reflect the level of service and commitment required. The table below shows the most common headhunter pricing methods.
| Pricing model | Average headhunter fee |
|---|---|
| Retained search | 25% – 35% of the first-year total compensation package |
| Container fee | $5,000 – $10,000 upfront deposit, plus 20% – 25% on placement |
Retained search
Retained search is the standard for executive and senior leadership hires. The search firm works exclusively for the company, providing thorough research, confidential outreach, and detailed candidate evaluations. Retained search fees range from 25% to 35% of the first year's total compensation, including bonuses, incentives, and relocation costs.
Fees are divided into three equal payments:
Initial payment: Paid at the start to begin research and outreach.
Second payment: Due when they present a shortlist of qualified candidates.
Final payment: Due after the selected candidate accepts the offer and begins employment.
Note: All payments made for retained search services are non-refundable. Once the search begins, fees compensate the firm for its time, research, and resources, even if the company cancels position or fills it by other means.
Container fee
A container fee is a hybrid pricing model that begins with an upfront, non-refundable deposit, commonly between $5,000 and $10,000, based on the role's complexity. After they place a candidate, they charge a recruitment fee of 20% to 25% of the candidate's first-year compensation.
The initial deposit is separate from the placement fee and secures focused effort from the headhunter, helping ensure the search firm delivers qualified candidates. The client only pays the remainder if they make successful hire.
Headhunter cost factors
Several factors can influence the total cost of hiring a headhunter or executive search firm:
Role level and specialization: Fees are higher for executive and highly specialized positions due to the complexity and depth of these searches.
Industry demand: Intense competition in industries with shortage of skilled leaders can raise the price for search services.
Agency experience and reputation: Firms with proven success and extensive networks often charge premium rates for their expertise.
Location and labor market: Fees may increase in major cities, competitive regions, or for searches requiring international outreach.
Hiring urgency: Short deadlines for filling key roles often lead to increased fees to reflect the extra resources and urgency required.
Minimum fees: Many firms require a minimum payment, frequently starting at $30,000 or more, regardless of position salary.
Market factors: The size of the company, economic climate, and scarcity of qualified candidates can drive total fee variability.
Refund policies: Many headhunters offer guarantee periods. If a hire leaves within a set timeframe, the search firm may replace the candidate for free or provide a partial refund.
Additional costs
Executive search firms often add extra fees for administrative support, travel, background checks, candidate assessments, and marketing the role. Longer or complex searches may also increase costs. These additional charges can add 5% to 15% to the total, so confirm what is included before you sign.
Boutique vs. large executive search firms
Boutique executive search firms provide personalized service and flexible fees, with greater access to candidates and expertise in specialized or confidential searches. Their main drawbacks are limited global reach and fewer resources for complex projects.
Large executive search firms offer broad networks, advanced research, and high-profile name recognition, making them ideal for international and large-scale searches. However, they charge higher fees, use a more standardized process, and may face more restrictions on where they can recruit.
Headhunter vs. recruiter
Headhunters specialize in experienced executive and senior-level positions. They use a targeted, exclusive approach, resulting in higher fees due to the complexity and depth of the search. Companies often rely on headhunters for senior roles, hard-to-find experts, or confidential searches designed to attract top talent from competitors.
Recruiters work mainly with candidates who are actively searching for new jobs. They handle mostly entry-level and mid-level roles, sourcing candidates through job postings and applications. Recruitment fee models include hourly rates, flat fees, or contingency arrangements, earning payment only when they complete a placement.
Headhunter FAQs
Should I hire a headhunter to find a job?
Hiring a headhunter can be beneficial for senior executives or highly specialized professionals seeking confidential, high-level opportunities that are not advertised publicly. This approach offers targeted guidance, discreet outreach, and access to leadership roles that companies often fill exclusively through executive search firms.
Are headhunters worth it?
Headhunters are worth it for finding top talent in executive, senior-level, or specialized roles that are hard to fill. Their expertise and networks help companies and professionals access better opportunities and candidates more quickly.
Who pays the headhunter fee?
The hiring company pays the headhunter fee, not the job candidate. Employers cover these costs as part of their recruitment expenses. Companies never expect candidates to pay headhunter or executive search fees.
How to find a headhunter
To find a headhunter, start with these practical steps:
Ask colleagues or industry contacts for recommendations based on successful placements.
Search online for headhunter firms or executive search agencies specializing in your field or location.
Check professional networks such as LinkedIn for headhunters with relevant expertise and strong reputations.
Look for accredited headhunters through associations like the Association of Executive Search and Leadership Consultants (AESC).
Review company websites, client testimonials, case studies, and ratings on Talo to confirm experience and results.
Questions to ask a headhunter
These targeted questions ensure you work with a headhunter who can meet your hiring needs:
What industries and roles do you specialize in placing candidates for?
Can you provide references from clients whose searches you've successfully filled?
What is your process for sourcing and evaluating candidates?
How do you keep me updated on search progress and candidate status?
Are you working exclusively on this search, or are other recruiters involved?
How do you assess cultural fit between candidates and our organization?
What is your fee structure?
What happens if a placed candidate leaves within the guarantee period?
What timeline do you expect for presenting qualified candidates?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.