How
does M&F determine fees?
Our fees are based on the nature and difficulty of
the search, including such factors as level of the position,
competitiveness of the compensation package, difficulty
of identifying and attracting prospects, expected impact
on the client's business, time and effort required of
our consultants, plus other factors unique to each assignment.
Once agreed upon the fee is fixed. There is no additional
fee if the compensation offered the candidate hired
is greater than the target compensation. We reserve
the right to discuss additional fees if the search specifications
change substantially from those originally agreed upon,
or if the search becomes protracted for reasons beyond
our control.
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Why
are fixed fees important to the client?
A fixed fee is important because it removes a major
obstacle to trust and confidence between client and
search firm. Under the traditional fee formula (percentage
of actual compensation) other firms bill an additional
fee if the compensation offered is higher than the original
target. Our clients can be assured that our recommendations
regarding candidates we present and our efforts during
the negotiation phase have the client's best interest
in mind, and not an ulterior motive of gaining a higher
fee.
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Why
is performance-based milestone billing important to the
client?
Performance milestone billing is important because
it assures our clients that we are invested in solving
their problem. By tying fees to performance-based milestones,
we only get paid when you see promised results. Our
billing practice is our best assurance to our clients
that we will work as quickly as we can to achieve the
best possible results.
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What
is the impact of target compensation on the fee?
If the package is marginally competitive, the search
is more difficult since extra time and effort will be
required to develop candidates within the client's constraints.
Conversely, a competitive package tends to give us easier
access to a broader range of prospects, typically including
the strongest performers. Consequently, target compensation
is a key factor in the difficulty of a search, and this
is reflected in the fee.
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What
happens if the search is cancelled?
The search may be cancelled at any time for any reason,
simply by notifying us. On cancellation, we bill a prorated
portion of the next fee installment that would normally
have been billed, based on a thirty-day period from
the date of the most recent fee installment. We will
bill the remaining fee balance if you hire a candidate
we presented within one year of cancellation.
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What
happens if we identify a candidate independent of the
search?
The client has the option of
either canceling the search or having us include the
individual in the panel of candidates we evaluate and
present. The advantage of the latter choice is that
the individual will be thoroughly evaluated and reference
checked and subject to the same off-limits policy and
guarantee as a candidate we identified.
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