Majhi Group's inaugural annual report on VP and C-suite search outcomes — drawn from direct retained engagements and published industry data.
The 40% failure rate is the most-cited statistic in executive search. But the number obscures the mechanism. Executive hires fail for four consistent reasons: role definition drift between intake and offer, cultural misalignment that wasn't tested during screening, compensation structure that doesn't hold under competing offers, and speed pressure forcing a best-available hire rather than a right-fit hire.
Contingency search compounds all four. When a firm is paid only on placement, the incentive is speed and volume, not fit. Multiple firms working the same brief produce the same shallow shortlist from the same networks with the same surface-level criteria. Retained search eliminates the speed incentive. Majhi Group's retained model — one-third upfront, one-third on submission, one-third on placement — aligns every stage with quality, not velocity.
| Role Level | Industry Median (Contingency) | Industry Median (Retained) | Majhi Group Average |
|---|---|---|---|
| VP-level | 60–80 days | 45–65 days | 30–42 days |
| SVP / EVP | 70–90 days | 55–75 days | 35–48 days |
| C-suite (CRO, CFO, CTO) | 80–105 days | 60–80 days | 38–52 days |
| Founder / CEO | 90–120 days | 65–90 days | 40–60 days |
Majhi Group's compression results from a front-loaded intake process, a pre-qualified candidate bench built before the search launches, and an evidence-based shortlist that requires less iteration to approve.
| Search Model | Typical Offer Acceptance | Majhi Group |
|---|---|---|
| Contingency / job board | 55–70% | — |
| Retained (industry average) | 75–85% | — |
| Majhi Group retained | — | 90%+ |
A failed VP hire costs between 50% and 200% of the role's annual compensation — not including time-to-restart, morale impact, or revenue lost during vacancy and ramp. For a $275K VP of Sales, a failed hire conservatively costs $150K–$550K all-in. The 41-day Majhi Group case — a $275K search closed after two firms each failed in 60+ days — avoided approximately three to four additional months of vacancy cost on top of an already 60+ day delay.
Three patterns emerge consistently. First, searches fail at intake, not at offer — when the role is poorly defined, every subsequent step is built on that instability. Second, speed and quality are not in tension when the process is properly structured. Third, the 90-day replacement guarantee changes behavior: a firm that stands behind a placement invests differently in the initial search.
The most widely cited figure is 40% of executive hires failing within 18 months. This applies across search models but is highest in contingency searches where speed incentives often outweigh fit quality.
Industry median is 65–90 days via contingency or job board. Retained search typically closes in 45–75 days. Majhi Group's average across VP and C-suite engagements through June 2026 is 30–45 days.
Contingency search typically sees 55–70% offer acceptance. Retained specialists average 75–85%. Majhi Group's offer acceptance rate is 90%+ across direct engagements.
The four primary causes are: role definition drift between intake and offer, cultural misalignment not caught during screening, compensation structure that doesn't hold under competing offers, and speed pressure forcing a best-available hire.
Typically 50–200% of the role's annual compensation, not including the time cost of restarting the search or the revenue impact of a longer vacancy period.
Every Majhi Group engagement starts with a 20-minute confidential search assessment — using your actual role as context, not a generic demo.
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