What are the big 5 headhunting firms?

The term 'Big 5' typically refers to the largest global executive search firms by revenue. These are generally considered to be Korn Ferry, Spencer Stuart, Heidrick & Struggles, Egon Zehnder, and Russell Reynolds Associates. They specialize in C-suite and board-level placements for large, multinational corporations.

Which company is best for recruitment?

The 'best' recruitment company depends entirely on your specific needs. Large firms are suited for global Fortune 500 searches, contingency agencies can work for junior-to-mid level roles, and specialized boutique firms, like High Altitude Recruiting, are often best for startups and scale-ups needing a dedicated, hands-on partner for critical leadership hires.

What is a typical recruiter fee?

Recruiter fees vary by model. Contingency fees are typically 20-25% of the candidate's first-year salary, paid only upon successful placement. Traditional retained search fees are often 25-35% of the first-year total compensation, paid in installments. Some modern firms offer a flat-fee model, providing cost predictability regardless of the candidate's salary.

Flat Fee vs. Percentage: A Founder's Guide to Recruiting Models

Andy Roads
Aug 14
4 min read

As a founder or CEO of a growing startup, every decision carries weight. But few are as critical—or as costly if you get it wrong—as hiring your leadership team. The right executive can unlock exponential growth; the wrong one can derail your roadmap, drain resources, and damage team morale.

The U.S. Department of Labor estimates that the cost of a bad hire can be as high as 30% of the employee's first-year earnings. For a senior-level position, that's a mistake that can easily cost six figures. So why do so many founders approach this critical function with a transactional mindset, often driven by a flawed understanding of recruiting models?

It's time to think about leadership hiring not as a transaction, but as a strategic investment.

The Flaw in Common Recruiting Approaches

When the pressure is on to fill a key role, many founders default to the most visible option: contingency recruitment. Others might consider a legacy, big-name firm. Both paths are riddled with hidden risks. Flat Fee vs. Percentage.

The Contingency Conundrum: A Numbers Game

In a contingency model, the recruiter only gets paid if you hire their candidate. On the surface, this sounds like a low-risk proposition. But it creates a fundamental misalignment of interests.

Lack of Commitment: Since their paycheck isn't guaranteed, a contingency recruiter’s time is their most valuable asset. They can't afford to dedicate weeks to deeply understanding your culture, your unique value proposition, and the nuanced needs of the role. They are incentivized to work on dozens of roles simultaneously, hedging their bets.
Speed Over Quality: The model rewards speed, not precision. You’re likely to get a flood of resumes that match keywords, but few candidates who are truly vetted for cultural fit, long-term vision, and leadership acumen. It becomes a race, not a strategic search.
Transactional Relationship: This isn't a partnership; it's a resume delivery service. You get what you pay for—or in this case, what you might pay for.

The Big Firm Façade: High Cost, Unpredictable Value

Traditional retained search firms operate on a percentage of the candidate's first-year total compensation (typically 25-35%). While this model implies a higher level of service, it has its own significant drawbacks for a scaling startup.

Misaligned Financials: The higher the candidate's salary, the bigger the recruiter's fee. This creates a subtle (or not-so-subtle) incentive for them to present more expensive candidates, regardless of whether they are the absolute best fit for your budget and needs.
Impersonal Process: You may be sold by a senior partner, but your search is often handed off to a junior associate juggling multiple assignments. The deep, consultative partnership you were promised rarely materializes.

The Strategic Solution: A Dedicated, Retained Partnership

The answer isn't to abandon the idea of a dedicated search, but to perfect it. A true retained search partnership operates as an extension of your own team. When you engage a firm on a retained basis, you are securing their time, focus, and commitment.

This model allows your hiring partner to go beyond simple keyword matching and engage in a comprehensive process:

Deep Discovery: They invest the time upfront to understand your company's vision, culture, challenges, and the specific impact this role needs to have.
Market Mapping: They conduct exhaustive research to identify, engage, and attract the best talent—including passive candidates who aren't actively looking but are perfect for the role.
Brand Ambassadorship: They represent your company in the market with the professionalism and passion it deserves, ensuring a stellar candidate experience from start to finish.

This is how you de-risk a critical hire. It’s a strategic process designed for long-term value, not short-term commissions. But what about that unpredictable, percentage-based cost?

The High Altitude Advantage: The Best of Both Worlds

This is precisely why we built High Altitude Recruiting. We believe founders deserve the unwavering commitment of a retained search without the unpredictable and misaligned costs of a percentage-based fee structure. Our approach is designed to be the most founder friendly recruiting model on the market.

When you're comparing Flat Fee vs. Percentage recruitment, the difference is partnership. We combine the dedicated, in-depth methodology of a premier executive search firm with a transparent, predictable financial model that aligns completely with your success.

We offer our comprehensive retained search services for a simple, flat fee of $10,000 per search. No percentages, no sliding scales, and no surprises. You get complete cost predictability from day one, allowing you to budget effectively and focus on what truly matters: finding the absolute best leader to help you scale.

This fixed fee ensures our only incentive is to find the perfect candidate for your company, regardless of their salary demands.

Make Your Next Hire a Strategic Win

Choosing your recruiting model is as important as choosing your next investor. Don't leave your company's future in the hands of a transactional resume-slinger or an overpriced legacy firm. Invest in a true partnership that de-risks the hiring process and delivers long-term value.

Ready to see how a flat-fee partnership provides complete cost predictability and a better search experience? Learn more about our '$10k Advantage' and how we can help you build your dream team.

Executive Recruiting Stats for the Food and Beverage Industry

Here are some relevant statistics and trends for the Food and Beverage executive landscape:

High Demand for Supply Chain Expertise: In a post-pandemic world, supply chain leadership is paramount. A 2023 report noted that 73% of food and beverage executives see supply chain and operational efficiency as a top priority, driving demand for COOs and VPs of Supply Chain with proven track records in technology integration and resilience. (Source: Deloitte, "2023 Food and Beverage Industry Outlook").
The Rise of the Chief Sustainability Officer (CSO): ESG (Environmental, Social, and Governance) is a major focus. A significant trend is the growing demand for CSOs in the F&B sector. Companies are increasingly hiring executives to lead sustainability initiatives, which are now tied directly to brand reputation and profitability. (Source: PwC, "ESG in the Food Industry Report").
Digital Transformation Leadership is Key: Executives with experience in e-commerce, data analytics, and direct-to-consumer (DTC) models are in high demand. F&B companies are investing heavily in digital transformation, and they need leaders who can drive that change. (Source: Food Processing Magazine, "Annual Manufacturing Trends Survey").
Compensation Trends: Executive compensation in the food and beverage sector has seen steady growth, particularly in performance-based incentives tied to profitability and sustainability metrics. Base salaries for C-suite roles in mid-market F&B companies often range from $225,000 to $450,000+, with significant bonus potential. (Source: Korn Ferry, "Executive Compensation and Governance Report").