Commission Structure: What’s Your Split Between Recruiter and Account Manager?
In most agencies, there’s a specific way to divide commissions or billing between Recruiters and Account Managers. The AM focuses on bringing in clients, while the Recruiter handles filling the positions, so both contribute to the overall success of the agency. If your agency isn’t structured as a 360 model, how do you determine the split? Is a 50/50 division fair, or do you lean toward something like 70/30? We’d love to hear how your agency manages this!
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The commission split between Recruiters and Account Managers (AMs) can vary significantly depending on the agency’s structure, the level of involvement each party has, and the industry standards.
In general, a 50/50 split might seem fair at first glance, especially if the roles are equally collaborative in bringing in revenue. However, many agencies opt for a 70/30 split in favor of the AM because they often bear more responsibility for client relationships and business development.
Ultimately, the split should reflect the contributions and efforts of both roles. It’s essential to have open discussions about expectations and performance metrics to establish a fair and motivational structure. Consider also implementing performance-based incentives that can reward both Recruiters and AMs based on the quality of placements and client satisfaction. This approach can help foster teamwork and ensure both roles feel valued.
What commission structures have worked well for you in your agency?