Headhunters bear risk of mis-hiring at top

Headhunters bear risk of mis-hiring at top

The job of a hiring agency now extends beyond the placement of a suitable candidate as companies wait to see how a new hire performs before they finally release the full payment to the placement firm.In a marked departure from existing norms, this is the kind of risk-sharing arrangement some executive placement firms are now entering into with companies. That’s because the cost outgo on account of mis-hiring appears to be on the rise and, according to industry estimates, it can be anywhere between 26% and 100 % of the annual compensation package.

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