Recruitment can be a very lucrative and addictive career, but it’s not for everyone.
Here we discuss the pros and cons, and the money.
- You can make a lot of money fast.
- You don’t need formal qualifications in recruitment.
- You’re running a business within a business. This means clients come back to you based on your relationship and integrity.
- It feels damn good when you place someone in a role. You get a happy employer, a happy jobseeker, a happy boss and you get paid a bonus for it!
- The skills you learn are something that you will always be able to use in your future career.
- Every day is a different. You’ll get to see how a multitude of businesses work.
- Any business in any industry is only as strong as its workforce and for most recruiting the best talent is the difference between success and failure. As a good recruiter you are the key in this whole process. You get to make a difference and see the impact quickly.
- Recruitment is a full contact sport and not for people who seek an easy ride. Get it right and it’s the best job in the world, get it wrong and it can eat you up.
- You won’t place every job you work on.
- Recruiters need to work multiple jobs at any one time to ensure they make their targets. This can lead to being frazzled if you’re not careful.
- You may need to work unpaid overtime from time to time. If you’re consistently going home past 6pm, there’s something wrong.
- Recruitment is tied to the stock market. If it goes up, companies invest in new staff. If it goes down, the only people they are employing are debt collectors and accountants.
- You need to keep several plates spinning to ensure your pipeline is safe. This includes continually bring in new vacancies to fill, sending applicants details to employers, setting up interviews and managing placements.
- You have two customers – the job seeker and the employer. Sometimes they waste your time or even lie.
- It’s fast paced with lots of phone calls and emails. It’s not long lunches and games of golf.
- You’ll spend your time saying “no” more often that “yes” to job seekers.
Most recruitment agents work on a base + commission model. Some work on a flat base, some get a profit share or discretionary bonus.
All MACRO Recruiters are paid a weekly base and monthly commission.
MACRO’s trainees are paid a salary of between $40-45k during their first 3 months.
After the training period, there is a salary review based on performance.
There is no commission during the first three months period.
If you out-perform, you’ll be eligible for an earlier increase.
MACRO’s trainees usually end up earning $80,000 – $110,000 in their first year.
The company’s best is $145,000.
Recruiters are expected to make 3 times their base salary before they are eligible for commission.
This 3 times is called the Commission Point.
Commission is generally calculated as a percentage of the profit from every dollar received after the commision point.
A Recruiter on $40k base including supa, has a Commission Point of $120k per year, or $10k per month.
The agency pays a commission of 25%.
If they bring in $30k for the whole month they get 25% of 20K ($30k – $10k).
That’s $5,000 in commission for that month.
If they did that consistently they would end up with $100,000 for the year.
What happens if you don’t make the Commission Point?
The bit you were short on is added to the next month.
Generally if you’re short 3 months in a row, your employment is in jeopardy.
Uncapped Earning potential
At MACRO we don’t cap commissions.
The most a MACRO recruiter has earnt to date has been $187 in a year.
The following are the results of an industry wide Salary Survey in May 2019 by Pay Scale
See https://www.payscale.com/research/AU/Job=Recruiter/Salary for the latest rates
The average pay for an Entry-Level recruiter in their first year was found to be $54,996, $14,000 was derived from incentives.
What does a recruiter do?
A recruiter wears three hats: the Treasure Hunter, the Dating Agent and the Sales Consultant.
In most cases recruitment agencies are paid by the employer for being FIRST person that introduces the candidate that gets the job. That means it is a race to find the best candidate on the market before your competitors.
Recruiters are responsible for setting up introductions of perfectly matched candidates to the employer.
They also need to manage the employer and the candidate so that they progress to signing an employment contract.
Recruiters locate and gain agreements from employers to use their recruitment services.
They are paid a commission bonus based on the revenue that they gain from placement fees.
Recruitment is SALES.
Your job is to ensure that the employer hires the best person on the market.
It’s not helping people get a job – that’s what Centrelink and Career Advisors do.
For 4 hours a week minimum you’ll be contacting companies with the aim of securing agreements to recruit for their roles.
Around 20 hours a week you’ll be searching and screening candidates, this means marketing your vacancies to job seekers.
The remainder of your time will be mostly working with the employer to ensure they hire they hire the best candidate that you have available.
What makes a good recruiter?
Recruitment is one career were you can make a lot of money without having formal qualifications – but it helps.
If you can answer yes to these questions then you have the makings of being a successful recruitment consultant.
- Are you serious about becoming a recruitment consultant and do not see the role as just a stop-gap / filler?
- Do you enjoy selling?
- Can you be relied upon to achieve your own sales targets?
You’ll be a running a business within a business. How successful you are primarily comes down to you.
- Are you persistent?
Some roles may take over 3 months to fill. Thankfully most take less than 3 weeks.
- Are you competitive?
Great Recruiters hate to lose, they are continually learning and refining their craft.
- Do you have good troubleshooting skills
Recruitment is a moving feast, having a plan A & B is key to success.
- Can you really deal with pressure?
You will have at least 12 vacancies open at any one time, all with candidates applying.
- Are you a good negotiator?
There is the dream job and the purple unicorn candidate – and then there is reality.
Good recruiters dont “sell” people into jobs or candidates. Putting a square peg in round hole always backfires.
Recruiters present opportunities, manage the emotions around the parties involved and ensure a mutually beneficial employment partnership.
- Do you have the desire to develop and learn
You’ll need to understand the basics of the roles you are recruiting for
- Are you eloquent?
You’ll need to inspire people to action via phone, email and face to face conversations.
A ‘normal day’
This is what a ‘normal day’ at MACRO may look like.
- Call all suitable candidates that have applied overnight
- Introduce suitable candidates to your clients (employers)
- Contact your clients for feedback on candidates you’ve already sent, set interviews
- Return sales calls from Employers
- Advertise / Readvertise vacancies
- Reference check candidates
- Managing salary negotiations between your client and candidates.
- Marketing calls to existing clients
- Handling random candidate & employer queries
Other things that may pop up include client visits, preparing tender responses, face to face interviews with candidates, training, assisting in facilitating training workshops, network events.
It is fast paced.
Your time is one of your key assets. If you don’t manage it well, you could end up wasting it very easily and ending up with no commission.
Three months without meeting your sales target usually means that you’ll lose your job.
At MACRO, you will be paired with a Senior Recruiter.
Initially you will work alongside them so as to assist them with filling their roles.
As you do this you’ll progress through learning how to:
- Efficiently search databases
- Write and post inspiring job adverts
- Phone screen applicants
- Headhunt (call on potentially good candidates that have not applied to your role)
- Write up professional application summaries for the employer
- Reject unsuitable candidates
- Complete in-depth Reference checks
- Screen candidates soft skills (behavioural profiles and motivations)
- Face to face interview candidates
- Inspire employers to meet with your candidates
- Set interviews with the employer
- Negotiate salaries for your candidate
- Prepare tender submissions
- Sign employers up to MACRO’s terms of business
- Perform a professional client visit
Once you’ve shown that you’re capable of handling the whole process, you’ll be able to take on your own jobs from start to finish.
You’ll still be receiving training throughout your career.
Locating candidates (job applicants)
Generally recruiters locate candidates from
- Their agency database
- Online databases
- Linked In
- Job boards
- Social media
- Email and SMS marketing
MACRO is connected through its social media and database networks.
We reach 8.3 million Australians
Locating clients (employers)
Generally recruiters locate new clients by
- Cold calling
- Email marketing (MACRO does this on recruiters behalf)
- Candidates becoming hiring managers
- Looking at job boards
- The agencies own marketing
- Job seeker intel
- Networking events
In a perfect world, recruiters would specialise in recruiting for a certain skill set.
This means each job they work on results in a bigger targeted database of candidates, better market knowledge and faster filling of roles.
Unfortunately employers will come at you with requirements outside your speciality.
A recruiter’s job is find the most WILLING & ABLE candidate on the market for the job.
At MACRO we evaluate this through interviewing, reference checking and psychometric testing. So far we’ve placed over 8,500 people in the past 25 years. Only 21 of these did not make their 3 months’ probation.
If a placement does not make their 3 months’ probation, we have to replace them free of charge. This means no attributed commission until you have placed the replacement. Hence getting it right the first time is VERY important.
At MACRO we evaluate candidates based on what we call the right person first time method.
Common career paths after recruitment