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In-house Recruiter Incentive Plans (2)
Recruiting & Staffing
In-house Recruiter Incentive Plans (2)
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I am in charge of staffing a large healthcare company in an enviroment of rapidly escalating labor shortages. I am interested in learning if any company, in any industry, has an incentive plan that is
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Forums » Topic Forums » Recruiting & Staffing » In-house Recruiter Incentive Plans (2)
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In-house Recruiter Incentive Plans (2)
posted at 12/5/2006 7:21 AM EST
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Posts: 2
First: 10/10/2005 Last: 12/5/2006 |
I am the Manager of Recruitment for a multi hospital healthcare system and oversee a staff of 4 recuiters. They have been asking for some time now about an incentive plan and the AVP of HR and I proposed a plan that they did not receive well. It was based on:
1. Organizational Goals - RN Vacancy rate 2. Individual goals - Indivdual placements If they acheived 50% of the target for both they get 3% annual bonus; 100% of the target they earn 6% on their salary; 150% of target would be 9%...year end. Complaints: 1. Low total return on placements 2. Hard to understand credits per placement, 45 credits would = 100% of target 3. Would cause internal competition (they said they would hold onto candidates rather than share) They are asking if we could instead reward them with a % of placement fees saved (last year we saved the organization $1.5 million in search fees) divided equally. I too need to find an incentive plan that: 1. motivates the recuiters 2. rewards them appropriately 3. creates a team environment/not a directly competitive one 4. will gain the support of senior management |
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In-house Recruiter Incentive Plans (2)
posted at 12/5/2006 8:18 AM EST
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Posts: 3870
First: 2/12/2002 Last: 11/2/2009 |
The 2 dangers I see with your proposal are that it'll be a bit more complicated to administer than it needs to be and, as already seems to have happened, there's a link to contingency agency reward systems.
I would suggest that you simply establish a bonus plan based on objectives utilizing standard recruiting metrics such as time to fill, number of hires, hiring costs, etc. You can also include some organizational objectives. A 10% annual bonus for more junior recruiters and perhaps a 15% bonus for more senior. You can have bonus payouts quarterly, semiannually or annually although I favor the more frequent reward cycle. |
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In-house Recruiter Incentive Plans (2)
posted at 12/28/2006 1:02 AM EST
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Posts: 1
First: 12/28/2006 Last: 12/28/2006 |
I would give bonuses simply based on two or three levels of candidate. For example $300 for candidates making up to $50,000 and $500 for candidates making over $50,000. Avoid using percentages of annual salary as this can cause your recruiters to push for higher paying salaries for thier candidates. |
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In-house Recruiter Incentive Plans (2)
posted at 12/28/2006 1:34 AM EST
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Posts: 1
First: 12/28/2006 Last: 12/28/2006 |
I use a balanced scorecard system for my team. We are an RPO organization and the recruiters on my staff have a wide range of disciplines they are filling as well as a fluctuating demand. A portion of their commission is based on client communication and satisfaction, and a portion is based on days to qualified submittal, days open (TTF), and attrition.
I break the scorecarding rules a bit by giving recruiters the opportunity to score more than 100 based on exceptional performance. If they do this, their commission increases steeply. If you want to chat more, shoot me an email and I will call. |
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In-house Recruiter Incentive Plans (2)
posted at 12/28/2006 2:56 AM EST
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Posts: 4
First: 12/28/2006 Last: 5/10/2007 |
We have the recruiter bonus opportunity and amounts paid broke down by job category. Not all job categories are eligible for a bonus. For example, those who main duties are to recruit experienced management candidates from the industry do not receive a bonus for placing clerical. On the flip side they are not assigned clerical requisitions.
I have put into place an EPR program which is producing results. For now we have decided that the recruiters will still receive the bonus if the candidate comes from the referral program. We have found that the recruiters are the ones that can help drive the success of the ERP so why not reward them. |
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In-house Recruiter Incentive Plans (2)
posted at 12/28/2006 8:28 AM EST
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Posts: 13
First: 12/26/2006 Last: 1/9/2007 |
Prior to my current position in Business Development for the staffing industry, I worked as a recruiter for my present company. In this position I was paid 2% of the net profit of the branch on a monthly basis in addition to a competitive base pay. The more jobs I filled successfully the more money I made. Additionally, any Direct Hires were paid out as 30% of the fee distributed evenly amongst us in the branch, including the branch manager. |
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In-house Recruiter Incentive Plans (2)
posted at 1/3/2007 1:27 AM EST
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Posts: 1
First: 1/3/2007 Last: 1/3/2007 |
Incentive programs can work very well to drive productivity in a corporate recruiting environment, but there are a few things to consider before implementing such a program.
First, do you have the right recruiters? There is a big differnece between the typical corporate recruiter and a typical agengy recruiter. In the agency environment, commissions or bonuses have been in place for years, many at 100% commission. The recruiters in this line of work are a different breed. They thrive on competition, the thrill of the hunt and winning. If your recruiters, like most corporate recruiters don't think along these lines, it will likely have little impact to change the compensation structure. If that is the case, you might want to consider what changes will need to be made on your team. Secondly, will they make more money? If compensation is negatively effected in any way, you may experience turnover. Worse yet, recruiters might stay but become demotivated. That can have a ripple effect that would weaken your team. Be careful if you intend to lower base pay at all. Third, can you affor it? HR budgets are held very tight at most companies. You may get a very postive response and your payroll costs would be difficult to control. A star performer will very quickly become accustomed to making good money for their results. If you had to reduce bonuses to keep your budget in line, that could have a devistating effect, including the loss of you best team member. I have seen models where the bonus amount was charged out to the hiring manager's budget. Consider your options to ensure sustainability of your program. All that being said, the simplest model I have seen is a base pay ($70,000) plus $1,500 per position filled, and a year end bonus for most positions filled. There is no subjective terms such as difficult to fill, critical or priority positions. Difficult to fill could be directly related to a difficult hiring manager, and priorities change. Your recruiters will likely make six figures, but that is in line with what a solid agency recruiter would make, and they could walk accross the street and make that money at an agency any time. You want to make sure not to create a situation where you train good recruiters for richer pastures. You are on the right track with the idea of incenting your recruiters. Good luck with developing your program. |
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In-house Recruiter Incentive Plans (2)
posted at 3/22/2007 9:07 AM EDT
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Posts: 2
First: 3/22/2007 Last: 3/22/2007 |
I manage a small team (3) of recruiters for an engineering firm. We also provide contract and direct hire candidates for our clients. This is a corporate environment and I want to make sure I don't create an environment where the recruiters are competing against one another. I'd rather have a bonus structure based on the team's overall performance. Does anyone have any suggestions? |
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In-house Recruiter Incentive Plans (2)
posted at 2/7/2008 6:50 AM EST
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Posts: 2
First: 2/7/2008 Last: 2/7/2008 |
I recently retired from the Army with 10+ years in recruiting. The Army's incentives were awards and time off. That doesnt get you very far when you are a recruiter in a civilian job. I am now am the only recruiter for a health care supplemental staffing firm and trying to set up my own incentive plan. The owner and branch manager have never had a recruiter before. This agency lost 60% of their revenue over the last year and have a goal of gaining at least 50% of their current revenue back over the next year. I dont know anything about incentive plans and what I should expect, but I do know that I cant live off of $15/hr that I am getting right now. I would appreciate any feedback on a proposal to the owner and my branch manager. |
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In-house Recruiter Incentive Plans (2)
posted at 2/12/2008 5:20 AM EST
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Posts: 80
First: 11/17/2006 Last: 7/13/2010 |
[quote]
On 2001-08-21 06:17, csachse@iwif.com wrote: As the director of HR with two internal recruiters, we devised an easy-to-administer recruitment bonus. Recruiters receive a flat bonus of 2% the new hire's salary for regular positions (p/t and f/t). And, for very easy to fill entry-level temporary positions, depending on the work status (p/t and f/t), we offer either $100 or $200 per hire. Our recruiters are very satisfied with this plan, and we have a simple spreadsheet with basic information (new hire name, title, start date, salary, stock options, and bonus columns)to track the hires for payroll processing. Hope this helps! [/quote] A flat bonus of 2% of the new hires salary. Am I correct in assuming annual salary (vs. monthly or some other increment)? |
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