Executive search is often paid in stages, for example a third at engagement, a third at shortlist and a third at placement. Consultants are paid on billed fees with a heavy split between the partner who won the mandate and the researcher who found the candidate.
Billed fee, by stage.
A share of billed fee to the consultant team, tiered by annual billings.
Partner, consultant and researcher by fixed shares.
Fee partly refunded if the placement leaves within the guarantee period; commission adjusted.
€45,000
30%
50% partner, 30% consultant, 20% researcher
12 months
Headhunters are usually paid a share of the fees their firm bills for a search. In retained executive search, the client pays the fee in stages, and the consultant team's share is split by fixed percentages between the partner who won the mandate, the consultant and the researcher. The share often rises with annual billings.
Headhunting and executive search is a commission-driven industry. Fees per assignment are high, and a consultant's pay often follows the fees they bill.
Unlike regular recruitment, where agencies often work on a success basis with multiple competing agencies, headhunters typically operate on a retained or exclusive basis with guaranteed minimum fees.
How we compiled this: Fee levels come from SHRM and a Danish public tender (DTU). There is no public benchmark for typical commission rates or OTE in this industry, so we describe the structures without numbers and use illustrative examples.
According to SHRM, the standard retained executive search fee is about 33% of the role's annual salary, bonus and signing bonus, while contingency recruiters usually charge 20-25% of first-year cash compensation. These are US figures from 2016. In a 2024 Danish public tender (DTU), fees ranged from 13.24% to 18.76% of annual salary, highest for executive and manager roles. There is no public benchmark for the consultant's share of the fee, so the table shows the basis only.
| Search Type | Client Fee | Consultant Commission |
|---|---|---|
| Executive Search (C-level) | Share of first-year compensation (retained) | Share of the fee, often by payment stage |
| Senior Management | Share of first-year compensation | Share of the fee |
| Middle Management | Share of first-year compensation, retained or contingency | Share of the fee, often split between consultants |
| Specialists | Share of first-year compensation, often contingency | Share of the fee, paid on placement |
Headhunter commission is typically calculated as a percentage of the fee the firm receives from the client. Illustrative example (not a benchmark):
With tiered commission structures, the percentage can increase with high performance.
Split between a team of three (illustrative example: 50% partner, 30% consultant, 20% researcher):
| Team member | Share | Commission |
|---|---|---|
| Partner | 50% | $9,675 |
| Consultant | 30% | $5,805 |
| Researcher | 20% | $3,870 |
| Total | 100% | $19,350 |
If the fee is paid in three stages, each stage releases a third of these amounts when the client pays.
On-Target Earnings for headhunters depends heavily on billings. We have found no public benchmark by role. In Denmark, Statistics Denmark's broad group for recruitment and employment agents (DISCO 3333) earned DKK 48,335 a month on average in 2025, including pension and bonuses (LONS20). Roles that usually carry commission:
Contingency recruitment works differently; see recruitment agencies.
The headhunting industry has several unique commission aspects:
It is important to understand clawback provisions during the guarantee period. If a candidate leaves the position within the guarantee, commission may be recalled.
Prowi calculates commission live from CRM data, with fee stages and payments coming in via API or CSV. Team splits, billing tiers and guarantee-period adjustments run as rules, consultants see their earnings in a mobile app, and admins approve statements and send one approved file to payroll.
Book a demo to see your own plan calculated.
Commission is typically paid when the client has paid the invoice and the candidate has passed any probation period. In retained search, commission may be distributed over the three payment milestones.
In retained search, you are guaranteed part of the fee regardless of outcome. In contingency, you only receive commission on successful placement, but the rate is often higher.
It depends on the fee and the consultant's share. In the example above, a 30% fee on a $215,000 salary gives the firm $64,500, and a 30% team share gives $19,350 to split. There is no public benchmark for the share.
Yes, experienced headhunters with documented results can often negotiate better rates, particularly when changing jobs or after hitting high quotas.