Recruitment Fees in LATAM: Insights from a US-Based Executive Search Consultant
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.
Recently, I pitched to a LATAM-based fintech company that is seeking to hire three c-suite executives, offering a cash compensation range of $350-450k USD for all three positions.
I’m curious about the typical fees that recruitment firms charge in LATAM, particularly in Mexico. My team and I generally work on a retained basis, with fees ranging from 25-30%. However, given that this is for 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 make sure my fees are competitive and not off-putting to the firm. Are these rates reasonable for the LATAM market?
RCadmin
Your sliding scale of fees seems reasonable, especially given the executive level of the positions you are recruiting for. In Mexico and broader LATAM, recruitment fees can vary, but retained search firms often charge between 20% and 35%, depending on the complexity of the search and the seniority of the roles.
Offering a sliding scale can also demonstrate flexibility and a willingness to build a long-term relationship, which can be attractive to your client. Since you’re dealing with C-suite level roles, the value you bring in finding the right candidates justifies your fees, even on the higher end of the spectrum.
To ensure you’re aligning with market expectations in Mexico, it might be useful to gather insights from local recruitment firms or industry contacts to confirm that your proposed rates are competitive. Additionally, emphasizing the quality of your service and the expertise you bring can help mitigate any concerns about cost. Building trust and rapport with the firm is key, especially in markets that may have different norms around recruitment fees.