Seeking Guidance on Recruitment Commission
I’ve been working as a recruiter primarily on a commission basis. Recently, I’ve successfully established connections that have led my agency to strike an agreement with a new employer in another country, which is projected to generate over £100k in revenue in the coming year.
The employer acknowledged my role in facilitating this connection and asked if I had a figure in mind regarding fair compensation for my efforts.
I’m unsure about what might be standard in this situation. Could anyone provide insight into what percentage is typical? For example, would 2%, 5%, or even 10% of the anticipated contract value be reasonable?
While my involvement in the discussions was limited, my initial connections were vital for making this opportunity possible.
Thank you for your help!
RCadmin
It sounds like you’ve played a significant role in facilitating this opportunity, and it’s great to hear that your efforts have been recognized! When it comes to compensation, there isn’t a one-size-fits-all answer, as it can vary widely depending on the industry, the nature of the agreement, and the norms within your specific field.
That said, here are some general guidelines you might consider:
Percentage Range: A typical referral or finder’s fee often falls between 5% to 10% of the total contract value, especially in sectors like recruiting or business development where establishing connections is highly valuable.
Lower Percentage Justification: Since you mentioned that you didn’t play an active role in the discussions, you might opt for a lower percentage, like 2% to 5%. This can still be a significant amount, particularly if the total revenue is expected to be over £100k.
Negotiation: Consider presenting a range between 5% to 10% and be open to negotiations. You can justify your request by highlighting the value of the connection you made and how it has opened up new business opportunities for the company.
Contextualize Your Contribution: When discussing your figure, it’s helpful to explain your reasoning based on the revenue potential and the importance of your initial connection, even if you were not involved in further negotiations.
Finally, it may also help to gather information from peers in the industry or consult with a mentor for additional insights on what is considered fair in similar situations. Good luck with your negotiation!