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headhunter fees: how do they work?

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in short

A headhunter charges a percentage of the role's gross annual pay, just like an agency, paid on success or in instalments on a schedule set in the contract. A retainer pays part of the fee before any result, in exchange for priority commitment. With Muzzo, you only pay on hire, with no retainer and no exclusivity.

what are the three parts of a headhunter's fee?

A headhunter's fee breaks down the same way as a recruitment agency's: a basis (the pay the rate applies to), a rate or amount, and a payment schedule. Our guide how much does a recruitment agency cost covers the basis and the rate. Here, we focus on the payment schedule, which takes a specific form among headhunters: the retainer. In every case, the company pays: French labour law bans charging jobseekers for a placement service (article L5321-3 (opens a new window)).

what is a retainer, and how does it differ from a success fee?

A retainer is common among headhunters working on executive roles. Part of the fee is paid before any result, in exchange for the headhunter's commitment to prioritise your search.

the success fee

Nothing is owed until someone is hired. The headhunter carries the risk of not being paid if the search does not succeed.

instalments, or retainer

Apec, the French executive employment agency, notes that among agencies working with SMEs, pricing is set “on success or in three stages”, and that this criterion remains “rarely negotiated, with little competitive tendering”, with “reassurance clauses” often offered in return. Apec does not detail these schedules. In practice, depending on the contract, the portion paid during the assignment often stays with the headhunter, even if the role is never filled: check this before you sign.

63%

of French SMEs (10 to 249 staff) that used an agency to hire an executive cite rare profiles among their reasons

Apec, Le recours des PME aux cabinets privés de recrutement, 2024 (in French) (opens a new window), 2023 data

71%

of French SMEs (10 to 249 staff) that used an agency to hire an executive cite an urgent need or a lack of time

Apec, Le recours des PME aux cabinets privés de recrutement, 2024 (in French) (opens a new window), 2023 data

what is an exclusivity clause, and should you accept it?

Exclusivity reserves your role for a single agency or headhunter for a set period: you cannot hand the same search to another provider in parallel.

  • A dedicated headhunter can justify exclusivity for an executive role, if the search needs full discretion and a long commitment.
  • For a high-volume role, exclusivity removes the option to compare several approaches in parallel.
  • Open-ended exclusivity with no exit clause leaves you waiting for a result with no recourse.

Muzzo never asks for exclusivity: the assignment goes to several headhunters, the ones who have hired the most in your field.

what clauses should you check before signing?

  1. Check the basis: base salary alone, or bonuses and benefits too.
  2. Ask for the exact schedule: what is due at launch, at shortlist stage, and on hire.
  3. Read what stays due if the search fails: an unrefunded retainer is not unusual, but it must be in writing.
  4. Check the duration and scope of the guarantee if the hire leaves during the trial period.
  5. Clarify the exit terms if you want to end the contract early.

To compare a headhunter with a standard agency, read our guide headhunter or recruitment agency.

how does muzzo charge for a headhunting assignment?

On Muzzo, you set the fee between 5 and 30% of the role's gross annual pay, and only pay it on hire. No retainer, no upfront payment, no exclusivity.

success fee, retainer or Muzzo: what changes
modelpayment before resultexclusivityif nobody is hired
success feenodepends on the contractnothing to pay
retainer / instalmentsyes, in partoften requiredinstalments paid usually stay due
Muzzonononenothing to pay

To choose between these models for your role, read our guide success fee or retainer: which should you choose?.

frequently asked questions

Is a retainer refunded if nobody is hired?

Rarely in full. The contract usually states what stays due even without a hire: read this clause before signing, it matters as much as the rate.

Does a headhunter cost more than a standard recruitment agency?

Not necessarily: both usually charge a percentage of annual pay, with no public rate card. Read our guide [headhunter or recruitment agency](/guides/chasseur-de-tete-ou-cabinet-de-recrutement) to compare the two methods.

Can you refuse an exclusivity clause?

Yes, it is negotiable. On Muzzo, the assignment goes out with no exclusivity to the headhunters who have hired the most in your field.

What happens if you end a contract mid-retainer?

Instalments already invoiced usually stay with the headhunter. Read the termination clause before signing, especially its notice period.

sources

  1. Apec, Le recours des PME aux cabinets privés de recrutement, 2024 (in French) (opens a new window)
  2. Code du travail, article L5321-3 (Légifrance, in French) (opens a new window)

take action

no retainer, no exclusivity

Post your role: the assignment goes to the headhunters who have hired the most in that field, with no retainer and no exclusivity. You only pay on hire.