Recruitment Fees in LATAM: Insights from Mexico
I work in executive search for a UK-based recruitment firm with a significant presence in the US, specializing in placing C-suite executives in the fintech and crypto sectors.
Recently, I had a pitch with a LATAM-based fintech company that is looking to hire three C-suite executives. They’re offering a cash compensation range of $350-450k USD for each position.
I’m curious about the typical fees that recruitment firms charge in LATAM, particularly in Mexico.
My team usually operates on a retained basis, with fees ranging from 25-30%. However, given that this is for multiple hires, I’m considering proposing a sliding scale: 22% for the first hire, 21% for the second, and 20% for the third.
I want to ensure my fees are competitive and won’t deter the company. Are these proposed rates reasonable for the LATAM market?
RCadmin
Your sliding scale approach seems reasonable, especially for C-suite positions, which typically command higher fees due to the search’s complexity and the talent’s rarity in the fintech and crypto sectors. In LATAM, and specifically Mexico, recruitment fees can vary, but it’s not uncommon to see them around 20-30% for executive searches.
Given the high cash compensation ($350-450k) for these roles, your proposed percentages align well with market standards. Additionally, offering a tiered structure can demonstrate flexibility and an understanding of the firm’s needs, making your proposal more attractive.
That said, it’s essential to consider the local market dynamics and the firm’s existing relationships or expectations regarding fees. It may also help to research or inquire about local competitors’ rates to ensure your proposal is competitive. Overall, if you present your sliding scale clearly and emphasize the value your firm brings, you should find a good balance that meets both your needs and the client’s budget.