“If you think a professional is expensive, you don’t yet know how much an amateur will cost you.” Success fee, retained search, staged assignments: how headhunter fees really work — and why they are an investment, not a cost.

When we ask how much a professional recruiting service — or, even more so, a headhunting or executive search assignment — will cost the company, it is worth keeping that old saying in mind. An unproductive hire, or one who is wrong for the role, especially in a senior or strategic position, can cost far more than any headhunter’s fee. This is a long-term investment, not a one-off service.

That said, the price of a professional headhunter’s work varies according to the type of assignment. And this is where the crucial difference between recruiting, headhunting and executive search comes into play — the difference that explains the different fee structures.

 

Recruiting: costs, fees and contracts

Classic recruiting is the selection of staff who are not necessarily specialised. For the company it mainly means a saving of time: drawing on a large candidate database, the recruiter can shortlist quickly. There are, however, no contractual guarantees on the success of the search.

Contingency search / success fee

Payment is generally made only when the suitable candidate is hired — a zero-risk investment, which is why these contracts are known as success fee or contingency search. The company recognises the agency a percentage of the candidate’s gross salary, or a flat amount, but always conditional on a successful hire. No refunds or guarantees apply if the hired candidate leaves shortly afterwards.

Typically the recruiting percentage does not exceed 10-15% of the hired candidate’s gross salary. The advantage for the client is clear: until the hire is completed, nothing is paid. The flip side is that this model works well only when the profile is easy to find and widely available on the market. For a rare or scarce profile, you risk not finding the person at all — or, worse, hiring someone who does not match the real need.

Strengths:

• no cost if the search produces no result;
• a low commission on hiring.

Possible drawbacks:

• the search can become long or unproductive if the requirements are not detailed well, or without a professional agency;
• no guarantee if the hired candidate leaves in the short term.

 

Headhunting: costs, fees and contracts

With headhunting we move up a step: the search targets professionals and managers with specific, often “rare” skills. This intermediation requires deep knowledge of the sector, and the utmost trust and confidentiality in the exchange of information with both client and candidates. The latter are mostly passive candidates — not necessarily looking for a new job — so the headhunter’s skill lies in bringing them to weigh the advantages of a move they had not been considering.

To do this it is not enough to know the client’s values: you must be able to embrace them as your own, and to master the candidate’s professional terrain — the technical language, the roles, the day-to-day. This is exactly why we are headhunter focuses on one sector — logistics, transport, supply chain, engineering and manufacturing — where we are today a leader in headhunting at every level, with the advantage of “speaking the same language” as the market. The best candidates are assessed through our EIA™ methodology, based on how they manage problems, work in a team and approach continuous learning.

Staged (tranche) assignments

Market fees at this level typically range from 20% to 25% of gross salary. Our proposal splits payment into stages: a first tranche on signing the assignment, a second when candidates are met, and the last only on hiring. This is a guarantee of delivery — we do not simply “do our best”: we take on the problem the client raises and solve it for them.

Advantages of the staged model:

• the commission can be spread over time;
• a contractual guarantee: if the candidate leaves in the short term, a new search is carried out at no additional cost;
• confidentiality on the client’s identity until the final meeting with candidates;
• exclusivity of the assignment;
• certainty of finding the profile, within a defined timeline.

 

Executive search: costs, fees and contracts

At the top of the pyramid sits executive search — a service many competitors do not offer, because it requires high specialisation and great responsibility. The assignment targets the figures who run the company: top managers, directors and CEOs. The circle narrows: finding profiles that match the required skills, experience and mindset becomes an ever harder mission, and only experienced headhunters can take on such assignments. Confidentiality is crucial at these levels.

For these searches the “parent” brand of we are headhunter comes into play: the exxecutive division, which deals exclusively with the search for directors and executives. Persuading a professional who already holds a prominent position to change is extremely complex — the credibility of the agency is decisive in even getting a hearing at that level. The fee is therefore commensurate with the complexity: generally from 30% up to as much as 50% of the executive’s gross annual salary, or, in some cases, a flat amount agreed case by case.

 

Headhunter fees compared

	Recruiting	Headhunting	Executive search
Fee model	Success fee / contingency	Staged (three tranches)	Percentage or flat fee
Typical fee	10-15% of gross salary	20-25% of gross salary	30-50% of gross annual salary
When you pay	Only on hiring	On signing, on meeting candidates, on hiring	Agreed case by case
Exclusivity	No	Yes	Yes
Guarantee	None	New search at no extra cost	Confidential mandate
Best for	Profiles easy to find	Rare specialists and managers	Directors, CEOs, top management

 

Frequently asked questions

How much does a headhunter cost in Italy?

It depends on the service. Recruiting on a success-fee basis usually costs no more than 10-15% of the hired candidate’s gross salary; headhunting typically 20-25%; executive search generally from 30% up to 50% of the executive’s gross annual salary, or a flat fee.

What is a success fee or contingency search?

It is a contract in which the agency is paid only when the suitable candidate is hired, as a percentage of gross salary or a flat amount. It suits profiles that are easy to find, but offers no guarantee if the candidate leaves shortly after.

How does a staged headhunting assignment work?

The fee is split into three tranches: the first on signing the assignment, the second when candidates are met, and the last only on hiring. The assignment is exclusive and confidential, and includes a new search at no additional cost if the candidate leaves in the short term.

Why is executive search more expensive?

Because it targets the people who run the company, such as directors and CEOs. The pool is very small, the candidates already hold prominent positions, and only experienced headhunters with strong credibility can persuade them to consider a change.

Do candidates pay the headhunter?

No. The fee is paid by the client company that gives the assignment.

 

Still have questions? Contact our professional headhunters.

Magugliani Mattia (Managing Director)

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Last updated: 18 October 2026 · we are headhunter (Exxecutive Srl), Milan — executive search in Italy and Europe since 2002.