What are the fees for Libarty Group services, and who pays them?
The fees for Libarty Group are paid by the Client company.
Generally, fees are computed as a percentage of the total estimated gross compensation (including salary, estimated commissions or incentives, bonuses, and other emoluments) to be earned by the individual in the first twelve months of employment.
FEE: 33-1/3% of estimated gross annual compensation
Is Libarty Group a retained search firm, or a contingency search firm?
The answer is…yes.
Middle and upper-level positions are on a retained basis. With an upfront retainer (determined by the consultant when the search assignment is initiated), the ending fee may be ‘capped’ at a not-to-exceed amount…with the retainer deducted from the end payment. For more complex assignments, interim payment schedules are common.
Fees for lower-level positions are on a contingency basis…contingent on two things:
- That a decision is reached to hire a person presented by Libarty Group…at which point a fee is due at the date an extended offer is accepted. And…
- The amount of fee is based on the total first-year compensation.
- For example, an offer (and acceptance) for a salesperson…at a base salary of $60,000 with a $6,000 hiring bonus…and realistic first-year earned commissions of $15,000…would result in a fee due Libarty of $27,000.
- [33-1/3% of ($60,000 + $6,000 + $15,000), or 1/3 x $81,000 = $27,000]