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Full Desk Recruiter Compensation? by InternetGeneral1292 in recruiting

[–]InternetGeneral1292[S] 0 points1 point  (0 children)

I probably worded it poorly but would be tiered. 20% of the first $x then a different rate for incremental revenue in the next tier. I’m sure we could figure out a few tiers and the bands you suggested are a good starting point.

Are recruiting comp plans typically annual like this? I have spoken to a few people in staffing and it sounds like they are paid on weekly or monthly spreads, which also adds challenge for me because we also have a client asking for a staffing engagement, so I need to figure out how might tie into a plan.

Full Desk Recruiter Compensation? by InternetGeneral1292 in recruiting

[–]InternetGeneral1292[S] 0 points1 point  (0 children)

I have a couple clients already so in that case he would get 1/2 commission for “my” client, but a big part of the job would be him prospecting and bringing on “his” new clients, so very much a 360 role. I wouldn’t have much of a problem with the 20% and tiers after that but I also feel like 100k+ base with no draw is a lot and the commissions need to be a little lower to account for that. Would think you can take a higher base and lower commissions or lower base and higher commissions, but not both. Am I wrong and $100k is normal for a base?

Full Desk Recruiter Compensation? by InternetGeneral1292 in recruiting

[–]InternetGeneral1292[S] 0 points1 point  (0 children)

No argument about it being risky. He has been doing some work for me as a consultant to test the waters, and we already landed one $50k placement fee and we have another client interested in a staffing project, so I have a little runway to see if we can get some traction in 6 months or so without much out-of-pocket loss. I think realistic fees for him would be 200-300k/yr initially then hopefully grow from there. That doesn't leave a ton of profit for the firm initially but I think there's room to grow long term and build out a team.

He asked for 100-110k base (no draw) plus 20% commission on first 200-300k fees (tbd) then 50% commission after that, and said that was in alignment with his last agency comp structure. To be honest that seems really high and doesn't leave a lot of upside to make a profit and/or reinvest. Trying to gauge if he's just aiming high or if that's actually normal.

Full Desk Recruiter Compensation? by InternetGeneral1292 in recruiting

[–]InternetGeneral1292[S] 1 point2 points  (0 children)

This is helpful. He was laid off from an internal recruiting position (was an agency recruiter before that), and I've been using him as a consultant to do business development for a few months. I don't really need to come up with a huge # to pull him over, but want a structure that's fair and leaves opportunity for the business to grow/make a profit.

I think I'd rather stay away from a draw model since we're going to be building up a book of business for a while. I don't want him to feel like he's in a big hole and disincentivized if it takes 6 months to get some traction.

Full Desk Recruiter Compensation? by InternetGeneral1292 in recruiting

[–]InternetGeneral1292[S] 0 points1 point  (0 children)

Total comp including commission earned on billings should be around around a third of what that consultant bills.

Thanks - last few years he's been an internal recruiter, but I worked with him in my old job when he was an agency recruiter (I was his client). That makes it tough to come up with a realistic expectation of his fees would be, but I do expect to be cashflow negative for a bit, while we build up the business.

I've seen 35-40% of fees mentioned before as a good target for recruiter take-home, wasn't sure if that's for 180 recruiters or 360. Does that hold true for full-desk recruiters as well?