Recruiters from outside agencies earn a small base salary, but most of their salary comes from the commission they earn by placing clients. The average commission a hiring agency earns varies from case to case, but it is not uncommon for a first-year salary of the employed employee to be reduced by 40%. Recruiter salaries are based on responses collected by Built In from anonymous Recruiter employees in New York. It's worth noting that recruitment agencies may pay their recruiters differently than the standard commission reduction, based on the one-year salary of a new employee assigned to a client company.
As the numbers show, an external recruiter can earn much more money than an internal recruiter if everything goes well and employees are placed regularly. Becoming a recruiter has attracted the interest of many job seekers or people who change careers in recent years. Even so, you should keep in mind that some small or medium-sized companies looking for an internal recruiter are likely to combine hiring with human resources tasks. While you can analyze all that data and get an idea of how much recruiters earn, this may not be all the information you need to know what your earning potential as a recruiter could be.
If you are looking for job stability with a fixed salary, then your two main options are to work as an internal recruiter or for a staffing agency that offers a base salary. In addition, not all hiring companies earn a 40% commission for a job placement, some earn less, say 20% or 30%. And if you commit to becoming a recruiter, there's no one wrong, you can always try a different hiring route later on. However, there is no guarantee that employees will be placed, so there is more job stability as an internal hiring specialist.
That reduces the profits of individual recruiters and further muddies the question of determining exactly how much an individual recruiter earns each year. The recruitment agency then transfers the corresponding commission to the individual recruiter on a monthly basis during the 12-month assignment. In general, there are two types of commissions that external recruiters can receive: a hiring commission (or fee) and a placement commission (or fee). So it's up to the recruiter whether to spend time matching a lot of work orders with lower rates or placing a person in a C-level position for a higher fee.
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