Decoding a Retained Search Proposal: What Should Be Included?

A retained executive search isn’t a transaction—it’s a high-stakes strategic partnership. Like any serious partnership, it begins with a formal proposal that serves as the blueprint for success.

But these documents can be dense, filled with jargon and fine print. How do you cut through the noise to assess true value, manage risk, and select the right partner?

This guide decodes each component of a best-in-class retained search proposal. We’ll show you what to look for, what to question, and how to identify the red flags that signal the wrong fit.

The At-a-Glance Proposal Scorecard

Before you dive in, use this checklist to see if the proposal even covers the essentials. A quality proposal must clearly define:

• [ ] The strategic need behind the role (The Mandate)
• [ ] A detailed, multi-channel search methodology (The Process)
• [ ] A clear fee structure with no hidden costs (The Financials)
• [ ] A strong candidate replacement guarantee (The Safety Net)
• [ ] A robust off-limits policy to protect your team (The Ethical Commitment)

If any of these are missing or vague, proceed with caution.

Step 1: Confirm They Understand the Mandate

The first part of the proposal shouldn’t just list a job title; it must demonstrate a deep understanding of the strategic context. It translates your business need into a precise hiring target.

What to Look For:

• Position Overview: A summary of the role’s purpose, reporting structure, and key performance indicators (KPIs).
• Ideal Candidate Profile: A detailed description of the necessary experience, leadership competencies, and cultural attributes required for success.
• Compensation Parameters: A realistic outline of the expected base salary, bonus structure, and equity.

Your Action: Does this section read like a generic job description, or does it reflect the nuances of your conversations? Look for language that proves they were listening and can articulate the strategic importance of this hire for your business.

Step 2: Scrutinize the ‘How’ and ‘When’ — The Search Process & Timeline

This is the engine of the proposal. It details the firm’s methodology for finding, vetting, and presenting top-tier candidates. A lack of detail here is a major red flag.

What a Thorough Process Includes:

• Research & Discovery: A plan to understand your company culture, competitors, and Employer Value Proposition (EVP).
• Sourcing Strategy: A multi-channel approach using proactive outreach, industry networking, and their proprietary database to engage passive candidates.
• Evaluation Protocol: A clear description of their interviewing methodology, reference-checking process, and any assessment tools used.
• Projected Timeline: A phase-by-phase timeline estimating the weeks required for discovery, sourcing, shortlisting, final interviews, and offer extension.

Your Action: Challenge the methodology. Ask, “What does your process include that our internal team couldn’t do?” and “What are the biggest potential roadblocks in this timeline, and how do you mitigate them?”

Step 3: Analyze the Financials — Fees, Terms & Expenses

No section requires more clarity than the one about cost. A best-practice proposal leaves no room for ambiguity.

Look For a Clear Breakdown Of:

• Fee Structure: Usually calculated as a percentage of the hired candidate’s total first-year cash compensation.
• Payment Schedule: The standard is a three-stage payment plan: one-third to initiate the search, one-third upon presentation of a shortlist, and the final third upon hire.
• Expense Policy: A clear distinction between the professional fee and reimbursable expenses (like candidate travel or specialized background checks).

Your Action: Question any vague terms like “administrative fees.” Ask for a clear cap on potential expenses. The financial terms should be transparent and predictable.

Step 4: Evaluate the Guarantees & Ethical Clauses

This is where a firm demonstrates its confidence and commitment to a true partnership. These clauses protect your investment and your existing team.

Key Partnership Clauses to Find:

• Candidate Guarantee: A policy that outlines the firm’s commitment to conduct a replacement search at no additional fee if the hired candidate leaves within a specified period (typically 6-12 months).
• Off-Limits Policy: A hallmark of a true retained partner, this is the firm’s promise not to recruit from your organization for other clients for a set duration (usually 12-24 months).
• Confidentiality: An explicit commitment to discretion, crucial for sensitive C-suite or replacement hires.

Your Action: Confirm the off-limits policy covers your entire organization, not just one division. For the guarantee, ask about any conditions or exceptions that could void the replacement search.

Step 5: Review the Rules of Engagement & Fine Print

This final section outlines how you will work together and covers important legal considerations.

What It Should Include:

• Communication Plan: A defined cadence for progress updates (e.g., weekly calls, status reports).
• Compliance: Statements on Equal Opportunity Employment and data privacy.
• Termination Clause: Clear terms outlining what happens if the search is cancelled by either party.

Your Action: Pay close attention to the termination clause. What are your financial obligations if business priorities change mid-search? The terms should be fair and clearly articulated.

Deal-Breakers: 5 Red Flags That Signal the Wrong Partner

To quickly evaluate a proposal, watch for these deal-breakers. The absence of these key elements often signals inexperience or a transactional approach—not a strategic one.

1. Vague Methodology: No clear, detailed search process is outlined.
2. No Guarantee or Off-Limits Clause: A refusal to stand behind their work or protect your team.
3. Unclear Fee Structure: Ambiguous language around fees and expenses.
4. Lack of Senior Involvement: The proposal is presented by a partner, but the work is clearly delegated to a junior team with no oversight.
5. A “One-Size-Fits-All” Feel: The proposal is generic and shows no real understanding of your specific company or needs.

Final Takeaway

A retained search proposal is more than just a sales document—it is your first and best indicator of a firm’s strategic thinking, professionalism, and commitment to partnership.

Look beyond the fee percentage. The best proposal provides a clear, transparent, and confidence-inspiring blueprint for a successful search. It proves the firm is ready not just to fill a role, but to help build your organization.

Ready for a Partnership That Meets the Standard?

Now that you know exactly what to look for in a retained search proposal—from the strategic mandate to the ethical guarantees—you are equipped to distinguish a transactional vendor from a true strategic partner.

At JRG Partners, we believe a proposal is a direct reflection of our process, transparency, and commitment. We invite you to see how our approach aligns with the best-in-class standards outlined in this guide.

Explore our core practice area to learn more about our methodology and what a dedicated partnership with JRG Partners looks like.

➡️ [Learn More About Our Retained Executive Search Services]