Completing a Tax Executive Search Engagement
The best tax executive search firms understand the nuances of the job function and are adept at vetting candidates quickly. They also have the relationships, processes and experience needed to fill tax accounting roles with top talent fast.
Corporate tax leaders are tasked with increasing shareholder value and mitigating tax-specific risk, responsibilities that require an exceptional team of tax professionals. But world-class tax executives are scarce. Many generalist retained executive search firms devote only a small percentage of their resources to this niche area, leaving companies without the talent they need to compete and win.
In a recent survey, over half of tax leaders cited a lack of leadership capabilities in their tax departments as a key challenge. This is especially true for senior-level positions, where turnover is high and tenure shorter than ever. And with more companies requiring tax specialists, it’s even more important to find and engage the right candidates quickly.
A Typical Timeline For Completing a Tax Executive Search Engagement
A typical timeline for completing a tax executive search firms depends on a number of factors, including the level of position and how complex it is. The fee can also vary based on location. For example, a tax executive search firm in a large metropolitan area or one with a higher supply of talent might charge more than a firm in a less competitive market.
Lastly, an initial retainer payment is often made to start the process. This can range from 10% to 25% of the estimated total fee and is similar to the contingency model.
Moreover, tax executive search firms play a crucial role in talent development and succession planning within the tax function. By partnering with clients to identify high-potential candidates and providing targeted coaching and development opportunities, these firms help organizations nurture their internal talent pipeline, ensuring continuity and stability within their tax teams. This proactive approach to talent management not only reduces the reliance on external recruitment but also enhances employee engagement and retention, driving overall organizational performance.
In an era marked by rapid technological advancement and regulatory complexity, the role of tax executive search firms has never been more critical. As businesses grapple with evolving tax laws, geopolitical uncertainties, and digital transformation, the need for agile and strategic tax leadership has never been greater. Tax executive search firms serve as trusted advisors, helping organizations navigate these challenges by identifying visionary tax leaders who can anticipate change, drive innovation, and deliver value in an increasingly competitive marketplace.
A comprehensive agreement will outline the terms of engagement, including how the search will be conducted (retained versus contingency), any restrictions on other search firms, an agreed-upon total fee percentage, a guarantee period and termination terms. It will also detail how the search firm will be compensated – typically via monthly invoicing.