What is a recruiter?
A recruiter, also known as a “headhunter”, is a person that works directly with a company (client) or another recruiter to find qualified people for a particular companies job openings. Recruiting does not require any educational degrees, exams or special certifications but it does require a thorough knowledge of your chosen field.
Most recruiters work on a “contingency fee” arrangement which basically means that the recruiter is contracted to identify, prescreen and qualify candidates for their clients review. Payment is only received after a candidate is successfully placed with the client.
Clients usually prefer this arrangement because they pay no fee unless we find and they hire a qualified candidate. As a recruiter, you help companies and job seekers connect and collect a fee when your job is completed.
A “retained” recruiter arrangement is another possible contract where the client pays part of the recruiters’ fees up front to search for a particular candidate. The balance is paid when the candidate is successfully hired. This type arrangement is usually more common with Executive level positions.
How does a recruiter make money?
A recruiter produces his income by placing candidates with a client and getting paid based upon the particular contractual agreement. This rate is usually 20 to 30% of the candidate’s annual salary. For example, if you were placing a candidate that had a salary of $70,000 per year then the fee paid to you would be $14,000 or more ($70,000 x 20%).
An average recruiter could do from 1-3 placements per month. When you do the math, you’ll find that this business can be quite a nice “home based” income producer!
Another primary source of income for a recruiter can come from other recruiters. This is done by being part of a split network whereas placements are done when one recruiter has the candidate and the other has the client. The collected fee is usually shared in a 50/50 arrangement.
How soon can I expect to make money as a recruiter?
This, of course, is entirely up to when you start your business and if you are involved as a part time or full time recruiter. Clients usually reimburse recruiters from 30 to 45 days after the candidate start date.
An average full time recruiter that has been in the business for 12 months can usually make between $40,000 and $75,000 (their first full year.) An experienced recruiter with 2-4 years experience can make anywhere from $100,000 to $200,000 or more.
Can I start this business part-time without quitting my current job?
Yes. You will find that there is a considerable amount of research and information gathering prior to starting your new business that can easily be done in your spare time.
After establishing your targeted specialty, you will begin accumulating names, phone numbers and emails of potential candidates. You can then start calling/emailing these individuals in you spare time and find out what interest them and if they are ready to pursue a new position.
Or you could first start networking with other recruiters that have a current client agreement with job orders for that specialty and then proceed with contacting candidates. As I mentioned before, there are several “recruiter associations” that are loaded with recruiters that need help with their job orders and welcome splits with other recruiters.
My preferred association is Top Echelon. They have a network of 1500+recruiters that are interested in “splits” and they also provide web site development, database availability, training and more.
Partner with Me
Do you currently have contact with hiring managers or human resource employees in your chosen industry? If yes, start contacting them and find out if they are currently utilizing the services of outside recruiters. If they are, this could be an excellent opportunity for you to offer your services as a recruiter and jump start your home based recruiting business.
Questions?
Feel free to email me at jim@homebasedrecruitingtips.com and I’ll do my best to answer your questions and point you in the right direction. I’m always looking for new partners to network with and make additional money in “split deals”.
If this type home based business interest you, then my beginner’s e-book will provide you with even more recruiting basics and creative ideas to make your business successful.
Start your Home Based Recruiting business
Archive for the ‘Recruitment’ Category
What is Home Based Recruiting ?
Friday, August 20th, 2010Your Dream Jobs At Your Doorstep – Just A Click’s Away Through Online Recruitment
Thursday, August 19th, 2010With the advent of the internet technology, people do not move out of their seat and constantly stare at the computer monitor. The online industry is the ever booming industry in the present day market. Online recruitment is the new buzz word in the market where people can apply for their dream jobs in the multi national company sitting at home. The days are gone where people have to take their files and search for any vacancy. There are many of the online service agencies and other recruitment agencies offering these services at an affordable rate.
People from UK can use the online recruitment UK services and benefit out of them. Leave out all your worries while approaching these companies. The job seekers have got many online search engine portals dedicated for these kinds of services. The technology can be used at its best to find the flat fee recruitment jobs and companies. People have to be aware of the terms and conditions that are prevailing while seeking their help. These agencies will allow the people to use their online portal by which they could apply for the companies where they wish at a flat fee. This is often termed as flat fee recruitment.
The job seekers will have to undertake an online test before submitting their resume. This first hurdle can be crossed effortlessly. The questions will include the analytical and logical type of questions. This will be purely depending upon the requirements of the organizations. If they wish to apply for the organizations through these recruitment agencies, job seekers will have to pay some amount of money. This is not the case with all the recruitment agencies. Low cost recruitment is possible with these kinds of players in the market.
The recruitment agencies will come forward to conduct some training classes in order to clear the online test. Some people might be weak in this part despite having a good technical knowledge. They will have an expert team and offer the training programs through their cost effective recruitment system. All the process will be made transparent with no back door policy. So the job seekers can be quite happy when it comes to appointment. However, they have to be aware of the fake organizations and online recruitment services. These frauds will demand some amount of money to get employed in the company through the back door policy
Online recruitment UK is preferred by most of the job seekers in UK because of their reliable services. They shoulder the entire responsibilities in filtering the profiles and verifying the requirements of the organizations to check whether your profile suits or not. However, in turn the job seekers must pay a minimal amount of money to avail these services.
Investing in Recruiter Training is Smart Business. Get Busy!
Saturday, August 14th, 2010The recruiting industry is evolving quickly. This is a fantastic profession that impacts businesses like never before. If you have never invested in a recruiter training program, do so today. There is greater and greater competition for top talent and the hit or miss mentality is fast getting left behind by those who want the credibility of the Title: Executive Recruiter. There are bountiful benefits and profits for those who treat the recruiting profession as a profession and forget the untrue claim of, “it’s just a numbers game”.Training is critical for those who want to be a professional Recruiter. Whether you choose to work for a search firm, as a contract recruiter, in an in-house recruiting department, or staffing agency, you will offer the maximum value if you understand and implement the skills of a full cycle recruiter.There is a vast range of skills and understanding at play throughout the recruiting industry today. Basic recruiter skill training is painfully absent. An interview and a check list must be used to determine the skill level of someone who claims to be a recruiter.Did you know that there is a 60% – 90% turnover rate in staffing agencies and search firms for new recruiters who have under six months of experience? Wouldn’t client corporations who use these services be shocked to learn that their ‘experts’ don’t know how to identify and screen candidates in their own industry? The whole recruiting industry suffers from a credibility issue when turnover rates reach such staggering levels. Why does embarrassingly high turnover remain business as usual?Did you know there was an average turnover rate of 23.6% for American companies in 2006, per the U.S. Dept. of Labor Statistics? The U.S. Government estimates the recruiting industry will grow by at least 50% by 2014. Private and corporate estimates put the number closer to 70%. What this means for professional Recruiters’ is unlimited success and income.If you are a professional recruiter, take charge of your career and your success and invest in training yourself. If your company gave you a desk and a phone and said, “work hard and you’ll make a lot of money”, don’t believe it! Don’t be an unnecessary casualty of lazy, poor management. There are a number of solid training courses that provide the tools you need to establish a method to make placement after placement. Training will help you improve your results. Do it today! This is your profession. Don’t fail or lose out on income because you stepped into a revolving door mentality at your staffing agency or search firm office. You know more than anyone that companies view candidates as a portfolio of skill sets and the more skills you have, the greater your value. The investment in a training program will be in your self. Your job satisfaction, effectiveness, paychecks, peace of mind and self-esteem will increase once you know the principles and methods used by successful recruiters.Many in-house recruiters suffer tremendous frustration from lack of training in the basic principles and methods Executive Recruiters use. Many in-house recruiter positions are glorified clerical spots, with great, unmet expectations. They are recruiters in name only. While it’s understandable that upper management can clearly see the value in eliminating or reducing the fees for outside recruiters, it’s silly to think their companies will benefit from a recruiter with no understanding of how recruiters’ get the job done.Most in-house recruiters have no clue how to utilize 100% of the candidate marketplace vs. the 20% reached by ads alone. There is more to recruiting than resume diving. Help your company by making an investment in recruiter training for every person involved in the hiring process. Providing training programs for in-house recruiters also means that should a recruiter leave, the expertise remains for the next recruiter to utilize. When Staffing Agencies and Search Firms take the first few days to train every recruiter who walks in the door, those companies’ excel. Applying risk management principles has proven throughout all business that reducing the risk of loss, SAVES companies money and MAKES them piles of money as well.It’s that simple. Longevity of staff members means less ad costs, less time interviewing, less down time, less time spent on orientations, less business interruptions, fewer mistakes, reduced frustration on the part of those continuously picking up the slack from vacancies, and less chaos. Longevity also means, more cohesiveness of effort is possible and more placements will be made. Recruiters’ will enjoy less stress and frustration, make more money, service their clients better, faster, smarter. A strong team, which everyone says they want, can actually have a chance to materialize when the expertise of everyone is raised to a higher professional level.When the recruiters in an office all use the same methods, they can assist each other. They have more trust in co-workers when they know the same principles and methods will be used on every search. Issues of personality or ‘sloppy’ practices are no longer a concern. One recruiter can assist another at any point in the process, once methods are uniform.Countless industries utilize standard practices. Take Home Inspectors. There has been a standardization of items to check during a home inspection that has been in place for decades. The Associations Home Inspectors belong to demand their members take continuing education courses every year to keep their good member standing. Credibility is enhanced and production increases with ongoing training.Of the unproductive practices I come across, lack of training is the easiest one to fix and generates the most rewards, almost immediately. Our company is dedicated to practical, step by step instructions and methods that Recruiters can utilize to make a good profession great.Start today, if you haven’t already done so…invest in yourself. Take a look at our Top Recruiter Secrets e-Book. You have nothing to lose and everything to gain! This is a great value. visit http://www.toprecruitersecrets.com