Real-World Recruiter Commission Plan Templates
If you are setting up an agency or starting a career in staffing, seeing a concrete recruiter commission plan sample is essential. Commission structures motivate recruiters while ensuring agency profitability. Below are three real-world recruiter commission structures commonly used in IT and executive search staffing.
Plan 1: Flat Percentage Commission (No Draw)
This is the simplest plan. The recruiter receives a flat base salary and earns a set percentage of all placement fees they generate (typically 10% to 15%).
Example Scenario:
- Recruiter Base Salary: $50,000 / year
- Placement Commission: 15% of gross fee
- If the recruiter places a software engineer with a $120,000 salary at a 20% placement fee ($24,000 gross fee):
- Commission Earned: $24,000 × 15% = $3,600
Plan 2: Progressive Tiered Commission (No Draw)
Under this plan, the recruiter's commission percentage increases as they bill more throughout the calendar year. This rewards high billers with larger cuts of their desk fees.
| Annual Billings (Fees Generated) Commission Rate | |
| $0 - $100,000 | 10% |
| $100,001 - $250,000 | 20% |
| $250,001+ | 30% |
Example Scenario: If a recruiter generates $300,000 in placement fees in a year:
- First $100k: $100,000 × 10% = $10,000
- Next $150k: $150,000 × 20% = $30,000
- Final $50k: $50,000 × 30% = $15,000
- Total Annual Commission: $10,000 + $30,000 + $15,000 = $55,000
Plan 3: Recoverable Draw Against Commission
Common in mid-to-large agencies, the recruiter is paid a semi-monthly draw (advance). The draw is then recovered from their earned commission split once placements are made.
Example Scenario:
- Monthly Recoverable Draw: $3,000
- Commission Split: 30% of placement fees
- If the recruiter closes a deal generating a $15,000 placement fee, their gross commission is:
- Gross Commission: $15,000 × 30% = $4,500
- Since they already received a $3,000 draw for that month, the draw is recovered:
- Net Commission Payout: $4,500 - $3,000 = $1,500