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Compensation Analysis within Recruiting - January 2002

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Here is a crash coarse on Executive Search vs. Staffing Agency Salaries:

With regard to salary for the Executive and Staffing Recruiter, I did some research along with my experience and came up with the following:  I've seen a base between $25K and $60K.  The position of recruiter can look identical to that of a Business Development or Account Executive (AE):

Base plus Commission:
$40K base with a 25% commission.  12.5% to the AE and 12.5% to the recruiter or 25% to those who bring in both the client and the candidate.  Actual numbers might equate to:

4 placements per month at an average of $18K per placement totaling
$864K
Less salaries (x 2) totaling
-$ 80K
Less commissions @ 25% of the above totaling
-$216K
Total gross profit to Company
$568K
Total annual salary per Employee approximately
$148K

This scenario usually includes an increasing commission percentage either per year or per $100K billed. The percentage may increase in increments of 5% capping off at 40%.

Draw against Commission:
$40K draw against a 40% commission.  20% to the AE and 20% to the recruiter or 40% to those who bring in both the client and the candidate.   Actual numbers might equate to:

4 placements per month at an average of $18K per placement totaling
$864K
Less commissions @ 40% of the above totaling
-$345K
Total gross profit to Company
$519K
Total annual salary per Employee approximately
$173K

MRI, Bridgegate, Hall Kinion, Korn Ferry, Heidrick & Struggles,  The Lucas Group, The Ankenbrandt Group, and Drake offer a draw (see below).  Some of these companies offer an increasing percentage of 10% per year or per $100K billed capping off at 60-70%.

Base plus Bonus: 
$40K base with a $4k bonus.  $2K to the AE and $2K to the recruiter or $4K to those who bring in both the client and candidate.
Actual numbers might equate to:

4 placements per month at an average of $18K per placement totaling
$864K
Less salaries (x 2) totaling
-$ 80K
Less Bonus @ $4K per placement (x 48) of the above totaling
-$192K
Total gross profit to Company
$592K
Total annual salary per Employee approximately
$136K

This scenario will reduce the incentive to obtain higher level salaried candidates.  This scenario is usually found with junior to mid-level corporate recruiters. Senior level recruiters may earn as much as $80-100K plus bonus.

These scenarios are based on one AE to one recruiter.

Keep in mind that most recruiting firms and agencies split the commission/bonus evenly between the AE and recruiter or each recruiter.  There is a completely different scenario for one who brings in a client with multiple positions (3 or more).  Then the split goes to 25/75.  The owner of the client receives 25% and the one who staffs the positions receives 75% of the total commission.

These scenarios are primarily base on Executive Search firms.  Staffing Agencies are much different with ongoing hourly temp or consulting candidates and the average base is $30K with a commission of 5-12% of hourly billed.  The volume is much greater.  On their permanent placement side, an Agency will offer 10-25% commission with that base.  I’ve not seen a total commission lower than 10%.

Double the salary above per employee for Executive Search and those who work both sides of the desk, doing both client and candidate search; like most great recruiters who average $200K -$250K, which equates to 2-3 placements a month consistently.

Agencies Salaries:  ($20-60K salary candidates)  (Most Agencies below split the desks between AE and recruiter)
Apple One permanent side offers a $35-$50K base with 15% commission.
Adecco perm side offers a $35-$45k base with 20% commission.
Remedy’s perm side offers a base of $30-$50K and a commission of 20%. 
Volt’s perm side offers a base of $30K and a commission of 20-40%. 
Culver is on the level of an Agency with their salary structure offers a $35k base and 15% commission. 
Search West is also in the Agency category offering $35K base with 15% commission. 
Spherion offers a $35k base with 15% commission.
Impact Search offers a $50K base with 20% of the first $100K billed and increases to 30%

Executive Search:  ($60-500K salary candidates) (Some firms split the desks between AE and recruiter)
MRI offers $50K draw with 40-50% commission. (some franchises split the desk)
Bridgegate offers $50K draw with 40-50% commission or a base of $50K and 25% commission.
Hall Kinion, offers $45K draw with 40% commission or a base of $40K and 25% commission. They split the desks.
Korn Ferry offers $50K draw with 40-60% commission or a base of $50K and 30% commission. 
Heidrick & Struggles offers $50K draw with 40-60% commission. 
The Lucas Group offers $36-$50K draw with 40-50% commission.
The Ankenbrandt Group offers $50K draw with 40-50% commission.
Drake International offers $50K draw with 40-50% commission.
The Advantage Group West offers $50K draw with 50% commission or a base of $50K and 25% commission.

Corporate Recruiters:  (Most include an additional quarterly bonus and/or a per hire incentive)
Junior level $35-$50K base plus $200 per hire.
Mid level $45-$60K base plus $300 per hire.
Senior level $60-$95K base plus $500 per hire or $3-$5K quarterly.
Management level $80-$100K plus $500 per hire and overrides or $3-$5K quarterly.
Director level $90-$120K plus $600 per hire and overrides or $5-$8k quarterly.

Contract Recruiters:  (Southern CA, add 25% for Northern CA)  (Some include a per hire bonus from $200 - $800)
Junior level Corporate Consultants range from $20-$35hr 
Senior level Corporate Consultants range from $60-$100hr 
All others are everywhere in-between