We are actively recruiting technical recruiters (and possibly full desk), and I'm curious if any agencies out there have interesting/creative compensation models for their new hires?  My business partner and I came from the 100% commission model - we liked the model, since those who are good easily and quickly see the benefit of that model - they make much more money. However, you also have to be pretty risk-happy to be ok with that model.  

 

If anyone is willing to share their ideas about what you like, don't like, or have heard works well, I would love the input. Commission, Base, NR Draw, R Draw, Profit Sharing, Bonus Incentive, etc.

 

 

Tags: Compensation, bonus, commission, draw, help, question, recruiters, salary

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HI Janine, great question...I am sure you will get some good feedback...I will post some info as well

I'm looking forward to the responses, Janine. We are considering bringing in another person, and are thinking of someone who will focus on business development. Currently, we have 2 of us that are owners and do full desk recruiting, 1 PT who is doing strictly the candidate sourcing and most of the candidate process, and 1 other FT person doing basically the same but I am training him on the business development piece. I'm very interested to hear how others structure their compensation, especially small agencies.

Are you planning to hire experienced recriters?  Or are you prepared to spend quite a bit of time training?

We are open to either scenario.  I'm not as worried about coming up with a good comp plan for trainees, but more curious what sorts of things work either for intermediate level people (3-5 years) or more experienced folks (5-10+).

I worked in a small agency - we were paid a very minimal salary and we were supposed to get bonuses for every fill we made, regardless of how long the person stayed on the job, and we were supposed to get an additional smaller bonus if the person stayed on the job for 3 months, and 6 months or longer - I was promised at time of offer that I could be making up to $2K per quarter.  Notice I said supposed to - instead we got a teeny tiny bonus ($300 or less) paid randomly on kind of a quarterly basis (sometimes it would be 4.5 to 5 months in between) and based off of nothing but the owners' whims - meanwhile they were giving themselves $10K and $20K bonuses each quarter (they didn't do any recruiting or business development).  

Now that I'm thru venting....obviously it will depend on your location, current job markets, and what they'd be recruiting for...but I think for an experienced recruiter with 3 years, you need to pay a basic base salary ($30K to $35K) and GREAT bonuses, as you know, we recruiters need something to push ourselves towards and compete for!  I HIGHLY recommend that you lay out the bonus structure so that the recruiters actually know exactly how to hit their highest earning potential.  If you don't offer some type of company paid or contribution towards benefits, you may need to up the salary to the $40K.  I'm interested to see what numbers others will throw in.  Good luck Janine!  

Will these recruiters work in an office with you?  I'm very (VERY) skeptical of paying a salary to anyone who is not working in my office. 

Hi Megan - thanks for your input. It sounds like you were really not treated ethically - get it in writing next time !! :))).

 

Jerry, yes, they will be in an office with us.

Hi Janine,

In Singapore (where I am based), most of the firms follow a "three times" rule. That is, if you are given a salary, your target is three times your base. So if you take 5 - 8 k as your draw per month, your target is 15 - 24k. Normally takes 2 times the base to break even due to overheads (rent is a killer in Central Business district) and the company obviously hopes to make a profit on each desk. 

Alternatively, if you are on straight commissions, the percentage can range from 40 - 50% as its low risk on company's side. 

Hope this helps and looking forward to feedback from others. Cheers!

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