What is fair compensation/commission rate for a 100% commission based Corporate Recruiter that brings qualified talent to a Corporation.

CWO3 Private RallyPoint Member — Tue, 16 Dec 2014 10:28:41 -0500

Rally Point Community,

To you - What is a fair compensation for a 1099 contractor working for a staffing agency as a recruiter bringing in Talent/People that places Veterans and Civilians in to Science, Technology, Engineering, and Math (STEM) jobs?

Is it a 50/50 split of revenue generated by the agency and possibly a monthly expense account for a few hundred dollars to cover meals and some travel? Or should the recruiter get more say 90/10 or 75/25?

Also, should Veterans be compensated at a higher rate while in the probation period? If so, should that be negotiated by the recruiter in a form of a lesser commission being taken by the recruiter and staffing agency? Simply by allowing the Veteran in a (temporary position to hire) keep more?

The average reduction in pay is about 25%-33% and of that about 7%-10% will go to Employer Tax paid by the staffing agency.

Example: A staffing agency places you in a temporary position and a company pays them $20.00 dollars an hour for you to work there. You will only get about $14.00 of that. Now of the $6.00 Dollars about $1.50-$2.00 will go to employer tax paid by the staffing agency. You will pay tax on the $14.00. The difference of $4.50-$4.00 dollars the staffing agency keeps as a fee for placing you.
When the probation period is over and the company wants to hire you on from there they have to pay the staffing agency the agreed finders/referral fee of say $2000.00 dollars for the sake of this example.
From there you start getting paid the full $20.00 and life goes on.

Let me know what you think and share experiences if you have been in this position. Do not hold nothing back Please!

Semper Fi,

DK

Response by CW5 Private RallyPoint Member made Dec 16 at 2014 10:48 AM

CW5 Private RallyPoint Member — Tue, 16 Dec 2014 10:48:13 -0500

This seems fair, CWO3 Private RallyPoint Member, what you wrote near the beginning of your post:

A 50/50 split of revenue generated by the agency and possibly a monthly expense account for a few hundred dollars to cover meals and some travel.

That way, you and the agency make some money up front. I think the higher splits are too much in favor of the recruiter. Just my humble (mostly uninformed) opinion.

Response by Cpl Private RallyPoint Member made Dec 16 at 2014 11:02 AM

Cpl Private RallyPoint Member — Tue, 16 Dec 2014 11:02:56 -0500

I concur with CW5 Private RallyPoint Member. Though I like working with most contractors, I thoroughly dislike working with most recruiters. The recruiters I have worked with, have epitomized the bad sales techniques everyone thinks about sales.

When I transitioned, I took entry level tech jobs and worked my way up. I never had to work through a temp agency or recruiter. But I have used a bunch as a hiring manager.

Response by SSG(P) Private RallyPoint Member made Dec 16 at 2014 9:24 PM

SSG(P) Private RallyPoint Member — Tue, 16 Dec 2014 21:24:02 -0500

Don't forget that the agency also has to pay for drug screening, background check etc...,I had good experiences using temp agencies as an employee. And when I decide to leave the military would probably use a headhunter; the cut they take would be worth not having to send out countless resumes, cold calling, pre interviews with HR etc...