Compare recruiter terms for a finance hire before starting the search

Before asking a recruiter to introduce finance candidates, agree the role, service and event that creates a fee. A permanent placement search, a retained executive search and a temporary staffing assignment can involve different obligations. The company should know which arrangement it is buying before candidate introductions begin.

Put the role brief beside the commercial terms. Include responsibilities, required experience, location, reporting line and the approved compensation range or process. A search can become unproductive when the recruiter works to one description while interviewers evaluate a more senior or different role.

Ask what the recruiter will deliver beyond names: outreach, initial assessment, evidence notes, coordination, references or offer support. Identify the company owner who provides feedback and the person authorized to change the brief. A clear service description makes the fee easier to assess.

Read the definition of compensation used in the agreement. It may include or exclude incentives, allowances and other elements. Ask when the amount is determined and how a later change to the offer affects the fee. A percentage is incomplete information without its base.

Robert Half's 2025 annual report describes its permanent placement fees as generally calculated using a percentage of the new employee's annual compensation. That is an example of a fee structure, not a statement of the terms or rate your company will receive. Obtain the actual proposal and calculate it directly.

In a hypothetical agreement, an assumed 20 percent fee on a $120,000 base salary would be $24,000. If the defined compensation base also includes a $15,000 guaranteed payment, the same assumed percentage produces $27,000. The $3,000 difference comes from the base definition, not from a different percentage. These figures are illustrative, not market rates.

Add any agreed expenses, taxes and separately priced assessment work to the budget. Ask whether expenses require approval and supporting records. Keep the total expected payment and its assumptions visible to the person approving the search.

Ask how the agreement defines an introduced candidate, the period during which the introduction remains relevant and the treatment of someone already known to the company. Review the actual wording with the appropriate commercial or legal adviser, particularly if several recruiters or internal channels will operate at once.

Establish a practical way to record introductions and promptly identify duplicates. The company should be able to show when it first received a candidate through each channel and whether a prior relationship was disclosed under the agreed process. Do not leave that evidence until a disputed invoice arrives.

Discuss a candidate hired into a different role or another group company. Determine what the agreement says and whether that scope fits the intended search. A recruiter introducing a controller candidate may have terms that reach beyond the single vacancy the hiring manager has in mind.

If the search is exclusive, define the role and period covered and how internal applicants or direct approaches are handled. Exclusivity can be a deliberate commercial choice, but the people involved in recruiting need to understand the commitment.

A replacement promise should explain what happens if the candidate does not start or leaves during the stated period. Ask whether the remedy is another search, a fee credit, a refund or something else. Do not assume the word guarantee means cash returns automatically.

Identify the conditions, notice deadline and exclusions in the actual agreement. Discuss how changes in the role, compensation, manager or business circumstances affect the promised remedy. These terms need to be understood before a difficult employment outcome makes the conversation urgent.

Ask what a replacement search includes and when it begins. A company with an immediate close deadline may still need interim coverage while another permanent candidate is found. Include that possibility in the operating plan without treating a recruitment remedy as a promise of uninterrupted finance capacity.

Keep the commercial remedy separate from management of the employee. The company should use its normal HR process for performance and employment decisions. A fee condition should not become a substitute for evaluating the person's work fairly and appropriately.

Agree who reviews candidates, schedules technical interviews, provides prompt feedback and approves an offer. A recruiter cannot complete a search efficiently when decision makers repeatedly change the criteria or remain unavailable. Put the expected response rhythm into the project plan.

Specify who assesses technical accounting capability. The company may use an internal finance leader or a separately engaged adviser. Ask the recruiter what its screening establishes and what remains unverified so the hiring team does not overread a résumé summary.

Define the process for role changes and pauses. If the company freezes hiring or changes the position from controller to CFO, ask how work already performed and future fees are treated. A short written change record can prevent competing recollections of what the recruiter was asked to do.

Keep candidate information within the company's approved hiring systems and access rules. Decide who may receive it and how long it is retained through the applicable process. The hiring team should not distribute résumés broadly simply because the recruiter supplied them.

When a candidate accepts or starts, check the fee-trigger event in the contract and reconcile the invoice to the agreed compensation base. Retain the offer details needed for that calculation with appropriate restricted access. Confirm any remaining recruitment deliverables and the contact for post-placement questions.

Record the dates and conditions relevant to any replacement service so the responsible company person can act if necessary. Do not rely on a hiring manager remembering the terms months later. Transfer that record if the manager changes before the coverage period ends.

The useful comparison is the total service and obligation attached to the search. A clearly defined fee, introduction process and remedy lets the company budget for recruitment while keeping the hiring decision focused on the role.