Do Recruiters Get Paid for Hiring Speed?

The relationship between recruiters and their compensation is an important aspect of the recruitment process. Often, the question arises: do recruiters get paid for hiring speed?

Common Recruitment Models and Compensation Methods

Recruiters typically do not get paid based on the speed at which candidates are hired. Instead, their compensation structures include several common models.

Contingency Fees

In the contingency fee model, recruiters receive a fee only if they successfully place a candidate. This fee is generally a percentage of the candidate's first-year salary, and it is not directly linked to the time taken to hire the candidate. This compensates recruiters for the success of their placements rather than their speed.

Retained Search

With retained searches, recruiters are paid a fee upfront to conduct a search for candidates. This fee is often structured in installments and is not directly tied to the speed of hiring. This model acknowledges the time and effort spent in the search process, regardless of how quickly a candidate is hired.

Hourly or Flat Fees

Some recruiters or staffing agencies charge hourly rates or flat fees for their services. This payment model is not influenced by the time taken to fill a position, allowing recruiters to focus on completing their tasks efficiently.

Corporate Recruiters and Payment Metrics

Corporate recruiters, on the other hand, receive a salary and are evaluated based on specific metrics. These metrics help ensure continued company growth, customer satisfaction, and professional stability for the recruiters. While speed can be a factor in a recruiter's reputation and future business opportunities, their payment is generally based on successful placements rather than the speed of those placements.

Internal Corporate Recruiters

Most corporate recruiters receive a salary and may also receive bonuses based on the number of hires or achieving certain goals. These bonuses are related to the overall performance and success of their recruitment efforts. Time is a critical factor, as positions open and are filled quickly. Recruiters will often encourage top candidates to move through the process quickly to ensure the best match for all parties.

External Contract Recruiters and Agencies

Contract recruiters or agencies, on the other hand, are paid based on the number of hires they make. There is no direct timing factor involved in their compensation. However, speed-to-hire is often a key performance indicator for agencies, as they need to demonstrate their efficiency and effectiveness in the job market.

Performance Metrics for Recruitment Agencies

While some agencies may put significant weight on time-to-fill as a metric for performance, most do consider various other factors as well. For instance, internal corporate roles often expect a 90-day or less time frame to fill requisitions, which is tied to key performance indicators (KPIs) and bonuses. Other metrics include the quality of the candidate slate, timeliness in communication, diversity, and the number of hires within a quarter. Anonymous post-hire surveys also go out to hiring managers and candidates to assess the recruiter's performance comprehensively.

Therefore, while speed is a valuable factor, recruiters are generally compensated based on successful placements, not just the speed of those placements. This ensures a balance between efficiency and thoroughness in the recruitment process.