Engineering Executive Search: How It Works and What It Costs

If you run an engineering firm and a senior seat opens up, you have probably asked two questions: how does engineering executive search actually work, and what will it cost? This guide answers both in plain terms, so you can decide whether a search firm is worth it for your next hire and know what to ask before you sign anything.

If you are still choosing between firms, read our guide on how to choose an executive search agency for engineering. This post is about the process and the money.

What engineering executive search is

Engineering executive search is a focused way of hiring senior leaders for engineering businesses: VPs of Engineering, Operations Directors, Project Directors, Technical Directors, Managing Directors and the people who will run a region or a business unit. It is different from posting a job and waiting for resumes.

The best people for these roles are usually busy doing a good job somewhere else. They are not reading job boards. A search firm goes and finds them, has a proper conversation about the role, and only brings you the ones who fit. That is the work you are paying for.

How the engineering executive search process works

Every firm runs it a little differently, but a good search follows the same basic steps. Here is how it works with us.

1. The brief

We start with a call with you and anyone else who has a say in the hire. We want to know what the role really needs to deliver in the first 12 to 24 months, not just the job title. Is this person stabilizing a team, growing a region, fixing delivery or getting ready for a sale? We also agree the pay range, the location and the interview steps at the start. Most searches that drag on do so because these things were never agreed.

2. Mapping the market

Next we map who is out there. That means the firms you compete with, the firms that do similar work in other regions, and the people who have done this job, or the job just below it, well. For engineering roles that usually means looking at licenses, the size and type of projects someone has led, and how long they have stayed in their roles.

3. Approaching candidates

We contact people directly and confidentially. Many of the strongest candidates are not looking, so the first call is about whether the role is worth their time. If you need the search kept quiet, we can run it without naming your firm until the right moment.

4. Assessment with RoleDNA™ Mapping

This is where most hiring goes wrong. A resume tells you where someone has worked. It does not tell you how they lead, how they make decisions under pressure or what will make them leave. Every shortlisted candidate goes through RoleDNA™ Mapping, which looks at a person across 8 levels and compares them with what your role actually needs. We add structured competency questions and real reference checks on the things that matter for your business.

You get that picture before you meet anyone, so your interview time goes on people who fit.

5. The shortlist and interviews

You get a short list of candidates you could actually hire, each with a written profile. We set up the interviews, prepare both sides and get feedback quickly. Good candidates usually have other options, so slow feedback is one of the easiest ways to lose them.

6. Offer, resignation and start

We help you put together an offer that works, check it with the candidate before it goes out and support them through resigning. Counter-offers are common at this level, so we talk about them early. Then we stay in touch through the first months in the job.

What engineering executive search costs

Search firms rarely publish price lists, and the number depends on the role, the market and the model you choose. What we can give you is the way fees are normally structured across the industry, based on published sources.

Retained search

In a retained search you hire one firm on an exclusive basis and pay the fee in stages. The Society for Human Resource Management (SHRM) describes the industry standard for retained search as about 33% of the role’s annual salary, bonus and signing bonus. The fee is usually split into installments, for example at the start, at the shortlist and at the hire, and much of it is due whether or not you end up hiring.

The Association of Executive Search and Leadership Consultants (AESC) says in its guide to choosing an executive search firm that fees are generally structured with a retainer and payments set at specific time frames or milestones. It also says not to pick a firm on fee alone.

Contingency search

In a contingency search you only pay if you hire someone the recruiter introduced. SHRM puts contingency fees in the area of 20% to 25% of the role’s first-year cash compensation. The catch is that you are often one of many clients for that recruiter, several agencies may be working the same role, and the recruiter is rewarded for speed rather than depth. That can work for mid-level roles where there are plenty of candidates. It is a bigger risk for a senior hire who will shape your business for years.

What the percentage is based on

Two quotes that both say “a third” can come out very differently. Ask exactly what counts as compensation. Is it base salary only, or base plus bonus and signing bonus? Does it include a car allowance or equity? Settle the base before you compare the rates.

Questions to ask about any fee

• When is each payment due, and what triggers it?
• What happens to the fee if you put the role on hold?
• Is there a guarantee if the hire leaves early, and what does it cover?
• Are expenses such as travel or assessments included?
• Who will actually do the work on your search?

The real cost is the wrong hire

The fee is the number you see. The bigger cost is the one you do not see on an invoice. A senior engineering leader who is the wrong fit costs you in lost bids, missed deadlines, team members who walk out and the months it takes to notice the problem and start again. If you want to see what these roles pay at the moment, our engineering leadership salary report is a good place to start, and it makes the size of a bad decision clear very quickly.

That is why we put so much weight on assessment and retention, not just filling the seat. 98% of our searches end with a placement, and 96% of the people we place are still in the role at 12 months. Every hire comes with a 12-month free replacement guarantee, or 2 years for senior roles.

What our clients say

Kathy Fuller, VP of Administration at Earthcore, put it like this:

“They completely changed my impression of recruiters. Alexander Executive Search is a true partner in a space where that word is often overused.”

And on the time it saved her:

“They have removed over 75% of the time and effort that I spent finding candidates on my own or through other firms.”

You can watch Kathy’s video on our For Clients page.

Is engineering executive search worth it for your firm?

It usually is when the role is senior, hard to fill or confidential, when the right people are not applying to your ads, or when a wrong hire would hurt delivery or growth. It is often not worth it for roles you can fill well from your own network or job posts. Be honest about which one you have.

If you want to talk through a role, see how we run engineering executive search or get in touch. We will tell you straight whether a search makes sense.

FAQs about engineering executive search

How long does an engineering executive search take?

It depends on the role, the location and how quickly you give feedback. Agreeing the brief, the pay range and the interview steps at the start is the biggest thing you can do to keep it moving.

What is the difference between retained and contingency search?

With retained search you hire one firm exclusively and pay in stages. With contingency search you only pay if you hire a candidate the recruiter sent, and several agencies may be working the same role.

How much does engineering executive search cost?

SHRM describes the retained industry standard as about 33% of the role’s annual salary, bonus and signing bonus, and contingency fees as around 20% to 25% of first-year cash compensation. Always check what the percentage is based on and when each payment is due.

Do you only send me candidates who are actively looking?

No. Most of the people we place were not looking when we called them. That is the main reason to use a search firm for a senior role.

What happens if the hire does not work out?

Every hire we make comes with a 12-month free replacement guarantee, or 2 years for senior roles.