- Remote recruiters are professionals who source, screen, interview, and onboard potential candidates for different open roles in the company.
- Given that there are different types of recruiters— internal and external— they get paid through different compensation models.
- Some of these models include— Contingency fee, Retainer fee, Internal recruiter fee, and Contract fee.
When joining a company, your recruiter is the first person to explain to you how you will be paid for the job. But have you ever wondered how they make money?
Unlike the regular employees, recruiter roles come in two types— internal and external. Both types provide different hiring services. And, both of them get payment differently.
So, if you are planning to start a remote career in the recruitment industry, you must have the question— “How do recruiters get paid?”
Well, no need to worry, your remote buddy is here to help you out.
In this blog, I have covered all the compensation models for different types of recruiting roles. Focusing on—
- Recruiters’ roles and responsibilities,
- How much they make,
- How they receive payment, and more.
So, you will get a complete idea of the financial nuances of the recruitment jobs. Keep reading to know more!
What Are The Roles And Responsibilities Of Remote Recruiters?
Remote recruiters are hiring professionals responsible for finding the perfect candidate for the company’s open position. So, their key roles and responsibilities include—
- Sourcing and screening candidates based on the eligibility criteria of the role.
- Conducting interviews to assess the potential qualities of the candidates.
- Managing the entire recruitment process— sourcing to onboarding.
- Utilizing the latest recruitment strategies and following the trends to source talent from the pool.
- Maintaining the records of the entire recruitment process with each candidate.
How Much Can Remote Recruiters Earn?
Generally, remote recruitment roles offer high-salary compensation, with the average annual salary ranging from $45,000 to $225,000.
However, the earnings vary due to a lot of factors— experience level, type of role, work performance, and specialization.
For instance, entry recruiters can earn up to $55,000 a year, while senior recruiters earn over $200,000 per year. As a working professional wrote in Reddit—
“My starting base was $38K. Over the next two years, I got slight raises and a promotion (recruiter to senior recruiter – no change in responsibilities, title change only), and my salary rose to $53K by 2021.”
Similarly, an external recruiter who is working with an agency gets a commission fee for every successful hire. According to the Reddit review—
“If they’re an external recruiter, they get paid a commission equal to a percentage of your salary, as long as you are with the company for a certain amount of time. The company pays this, it does NOT come out of your salary.”
So, they have a higher earning potential in the industry compared to internal recruiters or freelancers who work without charging a commission fee.
How Do Recruiters Get Paid Working Remotely?
Given the variety in the remote recruiting role, several compensation models are used to pay them. Some of these models include—
1. Contingency Fees
First things first, in the contingency fees model, recruiters receive payment only after they have successfully hired a potential candidate for the firm. That is, the clients do not need to pay any upfront fees before the successful recruitment.
In addition to this, their charge is calculated as a percentage of the first-year salary of the hired candidate. So, this fee structure motivates recruiters to hire the best talent.
2. Retainer Fees
Unlike the contingency model, a substantial upfront fee needs to be paid before the candidate search is conducted in the retainer fee model.
Moreover, the entire payment is made in installments throughout the recruitment process. So, each installment is paid at specific stages of the process.
3. Contract Fees (Temporary Salary)
Apart from these models, recruiters also receive payment based on their hourly rates in a contract fee model. So, while working with a company on a contract basis, they receive payment for their hourly services.
4. Internal Recruiter Fees (Permanent Salary)
Unlike external recruiters, internal recruiters are those professionals who work within a company to hire employees for the different roles in the company. So, they are paid like a permanent employee.
Similar to the salary structure of regular employees, they are paid fixed rates at the end of every month. Moreover, based on their performance, they receive bonuses and incentives.
How To Increase Your Recruiting Salary?
If you are planning to start your career in the recruitment industry, you need to know a few tips and tricks on how you can increase your salary. So, here’s a little cheatsheet.
- Build a stunning resume and cover letter to stand out.
- Gain experience and upskill through different courses.
- Practice interview rounds and salary negotiation skills.
- Combine your core skills with advanced recruitment technologies.
- Focus on being productive and efficient in your work.
Things to Keep In Mind When Getting Paid As A Remote Recruiter
Now that you have a comprehensive idea about “How do recruiters get paid while working remotely?”, you can start your recruiting career in the industry.
However, before jumping right into the role, a few considerations can help in getting paid properly as a remote recruiter—
- Charging hourly rates based on industry standards as a freelance recruiter
- Negotiating salary and incentive rates before joining as an internal recruiter
- Utilizing technologies and skills to find the best hires to earn the maximum commission fee
Moreover, by following these things, you can earn high payments for your recruitment services. So, go ahead and kickstart your remote career by becoming a proficient recruiter!
FAQs
If you are hired on a contract from the hiring agency, then your recruiting agent will get a commission for hiring you. Moreover, the fee will be based on your offered salary.
Even though recruiters receive payment for hiring candidates, they do not get a commission from the salary of the recruits. Instead, they get a fee for hiring from the agency, which is a percentage of the base salary package of the employee.
Recruiters’ earnings per hire depend on the industry standards and recruit’s base salary package. Generally, the amount ranges from 10-30% of the recruit’s salary package.
However, internal recruiters or permanent hiring managers do not earn through recruits; they have a fixed salary package with bonuses and incentives.
Executive recruiters make the most money by recruiting senior members for the team. Moreover, they utilize their experience and expertise to recruit professionals for executive positions. So, their compensation package is the highest in the recruitment industry.
No, recruiters do not receive any payment when the candidate quits the firm before the agreed-upon period ends. However, if the recruiter is working with an agency, then they might have to provide a free replacement for the candidate or refund a portion of the fee charged.
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