Recruitment Fees in LATAM: Specifically Mexico
I work in executive search for a UK-based recruitment firm with a significant presence in the US, focusing on placing C-suite executives in the fintech and crypto sectors.
I recently pitched to a LATAM fintech company that aims to hire three C-suite executives, offering a compensation package between $350k and $450k USD for each position.
What are the typical recruitment fees charged by firms in LATAM, particularly in Mexico?
My team and I usually operate on a retained basis, with fees ranging from 25% to 30%. However, since this opportunity involves multiple hires, I’m considering 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 not off-putting for the firm. Are these rates reasonable for the LATAM market?
RCadmin
It’s great that you’re expanding your services to the LATAM market, especially with a focus on the growing fintech sector in Mexico. Recruitment fees can vary significantly across different regions and industries, but your approach seems well thought out given you’re dealing with C-suite placements.
In Mexico, recruitment firms generally charge fees between 20% and 30% of the first year’s compensation, similar to your current model in the US. Your sliding scale proposal of 22% for the first hire, 21% for the second, and 20% for the third is reasonable and can be attractive, especially for multiple hires, as it demonstrates a willingness to collaborate and build a long-term relationship with the client.
However, I would recommend doing some local market research to validate these percentages. Fintech is a competitive industry, and while some firms may be accustomed to higher fees, others might expect lower rates, especially in a growing market like LATAM.
Additionally, it can be beneficial to communicate the value you bring, such as your expertise in C-suite placements and your established network in fintech and crypto. This can help justify your fees and reassure the firm of the quality they will receive.
Ultimately, being flexible and open to negotiation while ensuring your fees reflect the quality of your services and the market demand will serve you well in building a successful partnership. Good luck!