Young head of local executive search firm won't scalp clients with a new billing plan.Young head of local executive search firm won't scalp clients with a new billing plan Ken K. Chrenow, 31, last week broke the lock step of the executive search industry plus expenses regardless of whether a job is filled. Chrenow, president of J. E. Fowler & Associates, announced his Burbank headhunting firm now is offering client companies a contingency plan: That is, one-third of the fee when the search and the remaining third on the 61st day of the search. However, fees are refundable if the client is dissatisfied after 121 days, Chrenow said. Head hunter fees, based on a percent of the annual salary accepted by the hired candidate, have run up to a third of the accepted salary, Chrenow said. Some big head hunters, though, recently have been hiking their fees to 35 percent of the accepted annual salary, he noted, plus out-of-pocket expenses Out-of-pocket Expenses An expense that an individual incurs for either business or personal usage. These expenses are tax deductible.Notes: Having to purchase a new uniform for a job or a charitable function is an out-of-pocket expense. See also: Convention Expenses, Expenses, Gambling Loss, Home Office Expense, Household Expenses, Mileage Allowance, Moving Expenses, Operating Expense, Write-Off . Asked why he decided to go against the grain in the nearly $3 billion a year head hunter industry, Chrenow replied: "It was a realization something different was needed." Fowler, founded in 1953, has specialized in aerospace industry executive searches - technical skills, upper middle management, presidents of small companies with annual sales of up to $50 million. However, he lamented, the number of open positions in the aerospace industry, caught in a tailspin, has dived to half what it was a year ago. To be sure, Chrenow said, there still are aerospace openings - primarily in flight control systems and fluid handling systems (valves and pumps) - as companies scramble to replace military work with commercial business. But he is trying to diversify Fowler's executive search activities into non-aerospace manufacturing, environmental services and financial services - banking, insurance and thrift industries. To expand into those industries, Chrenow decided it was time to offer a "no risk" retainer retainer n. the advance payment to an attorney for services to be performed, intended to insure that the lawyer will represent the client and that the lawyer will be paid at least that amount. Commonly in matters which will involve extensive work there will be a retainer agreement signed by the attorney and client. Further payments for services can be expected as the time spent on the legal matter increase. arrangement. After all, in the nation to offer jobs completely free to the employee and the entire fee paid by the employer - an arrangement that became the industry standard. Thus, he expects the no-risk retainer to become the new standard for the head hunter industry. PHOTO : Chrenow: `Something different was needed' |
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