CEOs tend to seriously underestimate the costs of making an executive hire. Aside from the costs of acquisition, the costs of replacing a top executive can run up to 500% of annual salary — or upwards of $1,750,000 to fill a leadership role with annual cash compensation of $350k.
What goes into these figures? It depends on the quality of your executive search:
When it comes to your important executive search, the costs add up to one conclusion: get it right the very first time, every time you seek to fill a key leadership role. Dabbling in recruiting without having the expertise to execute well is not worth the risk.
A master headhunter who understands the unique culture and goals of your firm can provide you with a structured methodology and concrete conceptual models to achieve 90% or better success rates. CEOs can create massive enterprise value while avoiding costly hiring mistakes.