Commission Structure: What’s Your Split Between Recruiter and Account Manager?
In most agencies, commissions are typically divided between Recruiters and Sales/Account Managers (AMs). The AM usually brings in the business, while the Recruiter handles the candidate placement, so it’s common for the two to split the billing in recognition of their collaborative efforts. If your agency operates in a non-360 model, how do you structure this split? Is a 50/50 division reasonable, or do you lean toward a 70/30 distribution? We’d love to hear your thoughts!
RCadmin
The commission split between Recruiters and Account Managers (AMs) is a crucial consideration for many agencies, and it’s essential to find a balance that reflects the contributions of both roles.
In general, a 50/50 split is often seen as equitable, especially when both parties are heavily involved in the process. However, many agencies adopt different ratios depending on their specific dynamics and the nature of the relationship between the Recruiter and the AM.
For instance:
60/40 in favor of the AM: This could be justified if the AM is primarily responsible for generating the business and building relationships, while the Recruiter’s role is more about filling the positions.
70/30 in favor of the Recruiter: If the Recruiter is taking on significant responsibilities, such as sourcing and vetting candidates, there might be a case for a larger share for them, especially if the AM is primarily handling existing accounts rather than actively securing new business.
Ultimately, the best approach may vary based on individual agency culture, the specific contributions of each role, and the overall business model. Open communication and regular reviews of workloads and contributions can help ensure that the split remains fair and motivating for both parties. What practices have worked well in your agency?