The Search Flat Fee: Ethics Inspired by Fundraising

Diverse professional teams, interdisciplinary studies, and career exploration.

What do they have in common? They bring different perspectives that strengthen results. 

An example of one industry informing another is found in JUNE Partner’s flat-fee contracting. The typical executive search industry practice is for the search firm to charge a percentage of the placed candidate’s first year compensation, typically 30%. In this model, the firm and the client estimate the annual salary at the beginning of the engagement. The consultant bills on this, and a final reconciliation comes at the end when the candidate has signed their contract. 

JUNE Partners was founded by Sarah Gaines, who has also worked in nonprofit administration with deep experience in fundraising. In the AFP (Association of Fundraising Professionals) Code of Ethics, they specify that fundraisers should not be paid a percentage of the money they bring in but rather an hourly rate or salary. Why? Because there is the potential for a conflict of interest. With the percentage model, the fundraiser has an incentive to take funds that might not be in the best interest of the organization or of the donor so as to get paid. 

This wisdom from the fundraising profession inspired Sarah to found JUNE Partners with a fair and transparent flat-fee model for every search and engagement. 

Most search consultants are ethical, but the opportunity for a search consultant to act with self-interest is inherent in the percentage-based compensation. This is particularly fraught when the search consultant is in the position of communicating salary expectations and negotiating final compensation for the candidate and client. 

Ensuring that the search consultant is impartial in this negotiation is one way that JUNE Partners adheres to its values and is informed by diverse industry perspectives.