Recruiting in the fields of Human Resources and Administration offers unique and profitable opportunities, especially as businesses increasingly prioritize skilled talent in these essential areas. If you’re a recruiter specializing in HR and admin roles, understanding how to structure your services and capitalize on various revenue streams is key to maximizing profitability. Here, we’ll explore how recruiters in these areas typically make money, from direct placement fees to specialized services that can add significant value to clients.
Placement Fees for Permanent Hires
The primary revenue stream for most recruiters is the placement fee, especially for permanent positions. Placement fees are typically calculated as a percentage of the candidate’s first-year salary, with the industry standard ranging from 20% to 30%, depending on the complexity of the role and industry standards. For HR and admin recruiters, this model is particularly advantageous, as HR and administrative roles are critical to business operations, and many organizations are willing to invest in top talent for these positions.
Most admin roles may not command the same high percentages as specialized technical or executive roles, but the high volume of administrative needs can make up for this. Given that nearly every company needs HR and admin support, recruiters can create a steady income by filling a variety of positions across industries, including HR managers, payroll administrators, and office coordinators.
Retainer Fees for Executive or Senior Roles
For high-level HR roles, such as HR directors or chief HR officers, many recruiters operate on a retainer fee model, where the client pays an upfront fee for the recruiter’s exclusive dedication to finding top-tier candidates. This approach is common for more senior or strategic roles, where candidates with specific expertise or industry experience are needed.
Retainer fees offer greater income stability for recruiters, as the fee is often paid in installments, either by splitting the amount across key recruitment stages (e.g., upon initial search start, candidate shortlist, and hire) or as a monthly payment. This model not only ensures cash flow throughout the recruitment process but also creates stronger partnerships with clients who seek a dedicated search for strategic hires.
Temporary Placement and Contract Staffing
Temporary placements and contract staffing are particularly lucrative areas in HR and admin recruiting, providing steady revenue through ongoing fees. In this model, recruiters earn money by charging the client a markup on the contractor’s hourly rate, covering the recruiter’s service fees and the worker’s wages.
The demand for temporary administrative professionals—such as executive assistants, project coordinators, or payroll clerks—can increase with specific seasonal demands or project-based needs, giving recruiters the flexibility to provide clients with talent on an as-needed basis. Recruiters specializing in this model benefit from recurring income as long as the contract lasts, and they have the opportunity to build a robust database of reliable candidates for future short-term needs.
Payroll Services and Outsourcing
For clients who regularly need temporary or contract HR and admin professionals, offering payroll services can be a valuable addition. By handling payroll, tax deductions, and compliance matters on behalf of the client, recruiters can charge a fee, which is often a percentage of the worker’s pay. This provides added value to clients by streamlining payroll administration and reducing their administrative burden.
Payroll services create an additional income stream and help position recruiters as a comprehensive HR solution provider. For small- and medium-sized businesses, particularly, this is an attractive option, as it simplifies their HR management, while allowing recruiters to charge a recurring fee for each payroll cycle.
Consulting and Advisory Services
As HR and admin recruitment specialists, recruiters can also diversify their revenue by offering consulting services. In this model, recruiters leverage their expertise to provide advisory support on various staffing-related issues, such as optimizing HR processes, enhancing recruitment strategies, or improving candidate retention.
This model typically involves an hourly or project-based fee structure, which allows recruiters to charge for their time and expertise without necessarily placing candidates. For recruiters who have a background in HR, these consulting services can be especially valuable and position them as trusted advisors to their clients.
Value-Added Services: Training and Onboarding
Some recruiters generate additional revenue by offering training and onboarding services, ensuring that placed candidates are ready to succeed from day one. This approach is especially valuable in HR and admin, where processes can vary significantly across organizations.
By assisting clients with tailored onboarding or providing relevant training for new hires, recruiters can charge additional fees for these services. These services not only add value for clients but also help ensure that placements are more successful in the long term, boosting the recruiter’s reputation as a provider of end-to-end staffing solutions.
Adapting Revenue Streams to Client Needs
Successful recruiters in HR and admin roles understand that profitability comes from aligning their services with the unique needs of each client. By offering a variety of revenue-generating models, from placement fees to consulting and payroll services, recruiters can create multiple income streams, enhancing their earning potential and providing clients with customized, high-value services.
At Burnett Specialists, we’re dedicated to helping businesses find the best talent for HR and admin roles. Our extensive experience allows us to guide you in developing a strategic approach to recruiting, tailored to your company’s unique needs. Visit Burnett Specialists and let’s discuss how we can help you find the best candidates to drive your business forward.
