Did Your Recruiter ‘Quiet Quit?’ How Typical Fee Structures Incentivize Search Failure
Authored By Eric Walczykowski
It happens again and again. Our firm is brought in to take over an executive recruiting project from another firm. The search is months old but has stalled out with no successful conclusion.
The reason is simple. Typical retained search fee structures do not hold recruiting firms accountable for results. They “quiet quit” because there is no incentive to solve tough searches.
In the world of executive search, the alignment of incentives between the search firm and the client is crucial. Typical firm fees are 100% retained, meaning the full fee is due after a period of time without any required outcomes.
We think this is a mistake. At Bespoke Partners, we’ve designed our fee and compensation structure to ensure that our success is directly tied to yours.
Unlike the traditional models prevalent in the industry, our approach puts your needs first, ensuring that our partners and teams are fully committed to delivering results. In this post, I’ll break down how our unique fee structure and partner compensation model drive superior outcomes for our clients.
Part 5:
The New Recruiting Best Practices Blog Series
TODAY:
How Search Fees Incentivize Search Failure
UP NEXT:
How Bespoke’s Team-Based Approach Delivers Exceptional Search Outcomes
Quiet Quitting & the 100% Retainer
Most executive search firms operate on a 100% retained model, where the full fee is paid in three installments within the first 60 days—regardless of whether the search is successfully completed.
This model can lead to disengagement after the fee is fully paid, as there’s no further financial incentive to push for a successful outcome.
In effect, these firms will quiet quit and continue to provide updates on what seems like progress in the search. But in fact the team on your search has moved on and is not really expending any effort on finding new candidates for you.
Success Fee: Skin in the Game
At Bespoke Partners, we structure our fees in a way that aligns our incentives with those of our clients. Our model is simple yet powerful: 70% of the fee is retained, while the remaining 30% is contingent upon the successful completion of the search. This structure ensures that we’re as invested in the outcome as you are.
We have skin in the game, and are motivated to drive your searches to successful conclusions every time.
How Our Fee Structure Works
Retained Portion:
The retained portion of our fee—70%—is paid in three equal installments: on day 1, day 30, and day 60 of the search. This phased approach ensures that we are continually incentivized to push forward and deliver results, not just at the start of the engagement but throughout the process.
Success Portion:
The remaining 30% of our fee is paid only upon the successful completion of the search. This means that we don’t just get paid to start the search; we get paid to finish it successfully.
Our 70/30 model ensures that we never quiet quit. We’re fully committed to seeing the search through to a successful conclusion because your success is our success.
Partner Compensation Focused on Search Success
The way we compensate our partners is another key differentiator at Bespoke Partners. Unlike traditional firms, where partners are often incentivized to sell engagements rather than solve them, our partners are paid solely to execute your search. This focus on execution is what drives our industry-leading results.
How Our Partners are Compensated
Execution-Driven Pay
At Bespoke, our partners are compensated only for executing searches. They don’t get paid unless they deliver results, which means their full attention and effort are devoted to solving your search.
Contrast with Competitors
At many other firms, up to 60% of a partner’s compensation is tied to selling the search—30% for originating the engagement and another 30% for closing the engagement letter. This means that before a search even begins, a significant portion of the fee has already been earned, leaving just 40% of the incentive tied to actually solving the search.
The Impact on Search Quality
Focus on Results
Because our partners are paid to execute, not to sell, their focus is entirely on delivering the best possible outcome for the client. This model ensures that every search receives the full weight of our expertise and resources, leading to better results.
Why it Matters
The traditional model can lead to a disconnect between the client’s needs and the firm’s priorities. By contrast, Bespoke’s model ensures that our priorities are always aligned with yours, leading to a higher success rate and faster time to close.
At Bespoke Partners, our unique fee and compensation structure isn’t just a business strategy—it’s a commitment to our clients.
By aligning our incentives with yours, we ensure that our partners and teams are fully focused on delivering the results you need. This is why we boast a 95% success rate, an average of 95 days to close a search, and an 83% executive conversion rate—nearly double the industry average.
In our next post, we’ll explore how our team-based approach and collaboration further enhance our ability to deliver exceptional search outcomes. Stay tuned to learn more about how our entire firm works together to solve your most challenging executive searches.
Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.
Author:
Eric Walczykowski
Chief Executive Officer
Eric is passionate about building high-performing teams that value doing their best, working together, overcoming adversity and learning.
As a proven growth executive, Eric has served as CEO, President, Board Member, Investor and Advisor for technology companies that achieved over $4.5B in successful exits.
Eric brings to Bespoke Partners significant professional services experience from Deloitte and Andersen, as well as the high-growth client executive perspective for private equity-backed technology companies.
Eric earned an MBA from the Kellogg School of Management at Northwestern University and a BS in Business from Fresno State University.
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