Recruiters - do you know your market worth? ***Updated 2023***

Recruiters - do you know your market worth? ***Updated February 2023***

Hello all, I’m James, a Director of Napier Wolf Search for Recruitment?and today I want to talk to you about something that every recruiter should know - their market worth. I thought I'd share some valuable insights on this topic so, let's dive in!?

I've had hundreds of conversations/interviews with Recruitment Consultants and Recruitment leaders who are experts at offering career advice to their own candidates within their chosen niche markets but are left wanting when it comes to understanding their own personal market value and what they might be worth to another employer, perhaps even a competitor!

Now, before we continue, let me tell you that I have been working within the recruitment industry for over 20 years. I've placed 368 (hopefully soon to be 369??) recruitment professionals into various recruitment-based enterprises around the world.?

So, based on my experience, I have produced a basic guide to help you understand your personal market value within major international recruitment city hubs in Europe and the US.?

Attention all recruiters….?

We need to focus on “annual yield”. Annual yield is your basic salary plus commission/bonus as a percentage of your billings/contributions. If you're a recruiter billing c.300,000 in revenues and earning c.90,000, your annual yield is 30%. And, according to my guide, billing 300k annually should see you with a base salary of c.50-65k give or take.

Now, the larger the firm, the lower the yield will be, in most cases. You'll see the most attractive yields being offered in start-ups or boutique specialist businesses.

Let's take a look at some 360 recruiter examples in GBP ￡:

Yield ? ? ? ? ? ? ? ? ? ? ? ? ? ? 25% ? ? ? ? ? ? ? ? 30% ? ? ? ? ? ? 35% ? ? ? ? ? ? ? ? 40%+ ? ? ? Approx.Base? Billings? ? Low OTE? ? ? ? Average OTE ? Good OTE? High OTE Salary

25-30k ? ? ? ? 120k ? ? ? 30k ? ? ? ? ? ? ? 36k ? ? ? ? ? ? ? ? ? 42k ? ? ? ? ? ? ? N/A

30-35k ? ? ? ? ? ?150k? ? ? 37.5k ? ? ? ? ? ? 45k ? ? ? ? ? ? ? ? ? 52.5k? ? ? ? ? ? ? N/A??????

35-50k ? ? ? ? ? ?200k? ? ? 50k ? ? ? ? ? ? ? 60k ? ? ? ? ? ? ? ? ? 70k ? ? ? ? ? ? ? ? ? N/A

50-65k ? ? ? ? ? ?300k? ? ? 75k ? ? ? ? ? ? ? 90k ? ? ? ? ? ? ? ? ? 105k ? ? ? ? ? ? 120k

65-80k ? ? ? ? ? ?400k? ? ? 100k ? ? ? ? ? ? 120k ? ? ? ? ? ? 140k ? ? ? ? ? ? 160k

80k+? ? ? ? ? ? ? ?500k+ ? ? 125k ? ? ? ? 150k ? ? ? ? ? ? 175k ? ? ? ? ? ? 200k

?

Where do you measure up?

Please note, many firms will offer annualised bonuses when certain thresholds or milestones are achieved, which can skew the average yield depending on your success levels.

When it comes to commission structures, most Recruitment businesses will have an incremental commission range starting at 10% and rising to 30-40% depending on billings achieved based on revenues achieved monthly, per quarter or annually.

The minimum payout is 10%, and the maximum I've seen is 60%. But obviously, you need to be billing some big numbers to reach this level, and these opportunities will normally carry a sizeable threshold to achieve from 2-4 x base salary split monthly or sometimes on an annual basis. If you back yourself to bill big numbers, you could see yourself earning c. 300k before tax from achieving 500k in annual billings.

As a rule of thumb, you should aim for an overall yield of 30%+. If your annual yield falls below 30%, we should be talking!

Attention all recruitment leaders…

As a savvy leader, you know that there are many factors to consider when making the important decision to find your next role. One such factor is equity and skin in the game, which could potentially impact your recruitment efforts. Let's connect over a call, MS Teams, or meet up for coffee to discuss this further.

Attention all recruitment professionals…

Your earning potential will vary depending on the sector and company you work for. While financial services recruitment firms have traditionally had the most attractive earn-out structures, other industries such as technology, life sciences, and renewable energy have now followed suit.

However, money isn't the only factor to consider when looking for a new arena to ply your trade within. It's crucial to assess all aspects of a potential opportunity to ensure it aligns with your values and professional development goals.

When considering a job change, it's essential to examine several factors, such as…

• brand and reputation
• leadership, training, and development opportunities
• culture, environment, mission (what is the company trying to achieve, can you get behind the bigger picture plan)
• and rewards and incentives.

What matters most to you?

It's important to identify your priorities and be prepared to make trade-offs. Although we excel at Napier Wolf, it's unlikely you'll find a job that checks all the boxes. So, it's essential to keep one foot on the ground and remain realistic.

Think of the job search process as you would buying a new home. You're unlikely to find the perfect location with all the bells and whistles within your budget. Similarly, in this scenario view your budget as your personal currency, which can be further defined as your skills, experiences, and track record. These 3 things will determine what job opportunities are available to you.

It's crucial to determine your personal equilibrium and focus on what's most important.

Remember, choosing the right job will impact your career, success, and happiness. Don't be swayed solely by the highest base salary offer or the most aggressive commission structure as it may not be the right fit for you.

If you want to discuss your career further, reach out to me on LinkedIn, via email at?[email protected], or on WhatsApp at?+447947556696.

Your confidentiality is guaranteed!