Short answer: Choose on the answers, not the brand. Put the same seven questions to two or three agencies of different kinds: fee basis, upfront payment, refund rule, replacement period, shortlist count and time, who screens, and where the candidates come from. Get every answer in writing before anyone starts work. For a board-level search at a large group, a retained executive search firm is usually the right choice. For a finance manager, financial controller or senior accountant at a mid-size company, a finance-only specialist often gives the same result for a lower fee.
This guide is for promoters, CFOs and HR heads at companies in Ahmedabad, Gandhinagar and GIFT City, Vadodara, Mumbai, Pune and Bengaluru who are hiring a senior accountant, finance manager, financial controller, qualified CA or CFO.
Most agencies that fill finance roles in India fall into one of three groups. None is better in every case. Each is built for a different kind of client.
Executive search firms run retained searches for CFOs, finance directors and other leadership roles. Part of the fee is usually paid when the search starts, whether or not a hire is made. They map the market, approach senior people who are not looking, and manage a long, confidential process. Their fees are the highest of the three groups, because the work is the most intensive.
These are national or international recruitment businesses that hire for sales, technology, operations and finance, with a team or desk for accounting and finance. They have large databases, offices in several cities and the capacity to fill many roles at once. They suit large employers that hire across functions and cities and want one supplier for all of it.
A finance-only agency recruits accountants and finance staff and nothing else. The useful differences are who screens (someone who understands the work), how candidates are found (by approaching people already in similar roles, not only by waiting for applications) and what you receive (a few checked profiles rather than many raw ones). They suit mid-size employers hiring one or a few finance roles, where the cost of a wrong hire is high.
| Kind of agency | Usually right for | How the fee usually works |
|---|---|---|
| Executive search | CFO or finance director at a large group; confidential leadership searches | Retained: part paid at the start, the rest in stages |
| Large multi-function firm | Many roles across functions and cities at once | A percentage of annual CTC, usually on hire |
| Finance-only specialist | Senior accountant to CFO at a mid-size company | A percentage of annual CTC, one month's CTC or a fixed fee |
Go to a large firm or a retained search firm if any of these apply:
If you are hiring one finance manager, one financial controller or two senior accountants for a company of a few hundred people, the scale that makes a large firm valuable to a large employer is not what you are paying for. You are paying for a short, well-run search by someone who understands the role.
Agency fees in India are usually a percentage of the candidate's annual CTC. Published guides give these norms:
| Level | Usual fee, as a share of annual CTC |
|---|---|
| Junior and bulk hiring | 8.33% (one month's CTC) |
| Mid-level | 10% to 12.5% |
| Senior roles | 12% to 16.67% |
| Retained CFO search | 20% to 25% |
| CXO executive search | 25% to 33% |
Sources: TM Services and VelivoHR for the junior to CFO norms; Athena Executive Search and Consulting for CXO search. Fees are before GST.
Worked example: for a finance manager hired at ₹18 lakh a year, a fee of 12% to 16.67% is ₹2.16 lakh to ₹3 lakh. One month's CTC is ₹1.5 lakh.
The headline percentage is only one part of the cost. The upfront payment, the refund rule and the replacement period decide what you actually pay if the search goes wrong. That is why the questions below matter more than the rate.
Ask these seven questions and get the answers in the terms of business. An agency that will not state them plainly is telling you something.
Ask for the basis (a percentage of annual CTC, one month's CTC or a fixed amount), whether GST is extra, and when each part falls due. Ask for the figure in rupees for a hire at your budget, so you can compare agencies on the same number.
Ask whether there is a retainer or service charge, whether it is adjusted against the fee or added to it, and how much it is. Retained search firms usually take a first instalment at the start. Some agencies take nothing upfront. Neither is wrong; it changes who carries the risk.
Ask whether any upfront payment is returned if no hire is made, how much is returned, and after how many days that applies. A clear refund rule, in writing, shows the agency expects to fill the role.
Ask how many days from joining it covers, how many replacements are included, and which exits are excluded, such as redundancy. Read the exclusions. A long period with wide exclusions can be worth less than a shorter one with narrow exclusions.
Ask for a number of profiles per opening and a deadline in working days, counted from a stated date, such as the day you confirm. Three to five screened profiles are easier to act on than twenty unscreened ones.
Ask whether a recruiter or a finance professional reviews each profile, and whether each candidate is interviewed before you see them. For a finance manager or controller role, ask whether anyone with an accounting qualification reads the candidate's answers on closing, reconciliations, GST or Ind AS before the profile reaches you.
Ask whether candidates come from a database, a job advert, or direct approaches to people working at named companies in your industry. Good senior finance people are usually employed and not applying anywhere, so they have to be approached.
Disclosure: Accounting Baba is a finance-only recruitment agency founded by CA Ketul Patel, the author of this guide. Since we ask other agencies to answer these questions, here are our answers for hiring in India. They are the same terms that are on our Employers page and in our Terms of Business.
| Question | Our answer |
|---|---|
| 1. Fee | One month's CTC of the person you hire, plus applicable taxes. That is 8.33% of annual CTC. No retainer, annual fee or monthly charge. The balance is payable within 10 days of the candidate joining. |
| 2. Upfront payment | ₹5,000 per job opening, paid when you decide to go ahead, and adjusted against the fee. It is part of the fee, not an addition to it. |
| 3. Refund rule | If we do not close the opening within 30 days of receiving it, we return 50% of the service charge. Conditions apply. |
| 4. Replacement period | 90 days from joining. One replacement for the same role at no additional fee, when the fee was paid on time and you tell us within 7 days of the exit. It does not apply when the exit is due to redundancy, restructuring or a change in the role, location or salary. |
| 5. Profiles and time | 3 to 5 profiles per opening, within 7 working days of receiving the service charge. |
| 6. Who screens | Our team interviews each candidate, and our founder, CA Ketul Patel, personally checks every shortlisted profile before you see it. |
| 7. Candidate source | Our Target-Company Search: tell us your target companies, including your competitors, and we approach candidates working there. |
We place finance roles only, from senior accountant and qualified CA to finance manager, finance controller and CFO, for employers across India, including Ahmedabad, Vadodara and Mumbai. For junior or entry-level roles outside our home base we are not the right fit; a job board or a local generalist agency will usually serve you faster and cheaper. For a board-level search at a large group, a retained executive search firm is usually the better choice, for the reasons above.
Related reading: hiring a finance manager in India, recruitment agency or job portal, and what it costs to hire an accountant through an agency in India.
If you are hiring at board level for a large group, start with a retained executive search firm. If you are hiring many roles across functions and cities, a large multi-function firm fits. If you are a mid-size company hiring a finance manager, controller, qualified CA or senior accountant, put the seven questions to two or three agencies of different kinds and choose on the answers, not the logo. Whichever you choose, recruitment is a paid service for the employer, so get the fee basis, the upfront payment, the refund rule and the replacement terms in writing before anyone starts work.
Paid service: one month's CTC per hire, with ₹5,000 per opening paid upfront and adjusted against the fee. 3 to 5 CA-reviewed profiles within 7 working days of receiving the service charge.
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