Tom Sorensen | NPAworldwide

What fee do you pay recruitment firms?

Be careful. Some recruiters deliberately blur the picture, so you do not see what actually drives the fee behind the scenes. 

Your third-party recruitment agency and executive search firm calculate their service fee as a percentage of the successful candidate’s first year’s annual income.

The percentage will typically range from 15% to 35%.

You can jump straight to the full blog - click here.

What annual income actually means

Annual income is not limited to base salary. The standard definition starts with gross monthly salary before tax multiplied by twelve. But it rarely stops there.

The candidate’s annual income often also includes:

Fixed monthly allowances, such as transport, mobile phone, or housing

Fixed or guaranteed bonuses

Variable incentives attributable to the first year

Sign-on bonuses

The monetary value of a company car

A fixed allowance is a recurring monthly payment shown on the pay slip and treated as taxable personal income. 

There is much more to read under the headlines below. Click here to continue reading. 

• What more is included in annual income
• The fee equals 3 months or 4 months’ salary
• A contingent recruitment fee has limits
• A retained executive search fee gets you this
• Why headline fee comparisons fail
• What you should evaluate before judging a recruitment fee

Nop, if you are planning a senior hire in Thailand or across Asia and want to understand what you are actually paying for, reach out. 

I am happy to walk you through the economics, risks, and outcomes before any decision is made.