An internal recruiter is an employee of the company for which they are recruiting. Like any other employee, they receive a salary. In some cases, internal recruiters are also eligible to receive a performance bonus. Their motivations are straightforward: they want you to accept an offer to work at their company.
External Recruiters’ Earnings
External recruiters, also known as agency recruiters or headhunters, work for a staffing firm that helps multiple companies find people to hire. Agency recruiters earn commissions when they place candidates into jobs.
Salary Ranges for Recruiters
The range for a full-time recruiter salary can be as low as $37,000 per year to a high as $170,000 for Director of Talent positions. According to Glassdoor, the average base recruiter salary in the United States is $52,657 yearly.
External recruiters’ income potential depends on their client list and ability to place candidates. They typically earn commissions based on a percentage of the placed candidate’s first-year salary. For example, if the salary is $70,000 and the percentage is 20%, the recruiter will receive $14,000.
Contingency Recruitment
This means that the recruiter is not paid until the candidate is placed. They might also be competing against other external recruiting agencies that are trying to fill the position. If the organization does not ultimately select one of the recruiter’s candidates, then the recruiter does not get paid. That’s what it means to “work on contingency.”
Retained Recruitment
Retained recruitment occurs when a retainer is paid to a recruiter in advance, securing a commitment between the recruiter and client. The retainer is typically 15-30% of the total projected fee.