One of the most practical and informed trainers in
the staffing industry.

  —Bob Norton, Pres.
       Franklin Key

wBooks & Audio CDs   wSeminars & Training   wRecruiting Resources   wFree Tips   wNewsletter   wOrder   wHome

Free Tips for Recruiters

25 fact-filled articles
to help improve your performance

Newsletter Articles
Subscribe to Newsletter
Tips for Recruiters
Table of Contents

Strategy & Tactics
w Make Placements -- FAST!
w Voice Mail & E-mail: Eight Simple Rules
w Job Orders -- Better, Faster, Smarter
w How to Switch Desk Specialties
w Who Makes the Most Money?
w Retainers: Look Before You Leap
w How to Add Value, Not Redundancy
w Intelligent Online Recruiting

Skill Building
w Counteroffers: Can You Spot the Signs?
w Resume Makeovers: Quick Tips
w Is There a MAGIC to Closing?
w Finding the Right Recruiting Script
w Storyboarding for Maximum Impact
w How to Stimulate Candidate Referrals
w Expand the Supply of Candidates

Candidate Management
w Playing Softball with Your Candidates?
w The Power of Interview Preparation
w Control: The Key to Recruiter Success
w How to Fight the Counteroffer Bug

Employer Relationships
w You’re Worth the Money You Charge!
w Negotiate for Higher Recruiting Fees
w Anti-Discount Tactics for Recruiters

For Candidates & Employers
w Graceful Exits for Job-Changers
w Advice for Engineering Candidates
w What’s Your Capture Strategy?

Q & A for Recruiters
w Answers to Your E-mail Questions
Bill Radin answers letters from recruiters around the world.

Contingency or Retained Recruiters:
Who Makes the Most Money?

By Bill Radin

Which recruiter makes more money, retained or contingency? Generalist or specialist? Lone wolf or team player?

The answer? All of the above. The highest paid recruiters aren’t necessarily tied to a particular approach to the business; nor are they the smartest or the hardest working. They’re simply the ones who play to the strength of their respective business models.

Let me explain. The term “business model” refers to a unique combination of methods designed to turn a profit. If you’re like most recruiters, your business model is already in place; it was taught to you during your first week on a desk.

Terms like “contingency,” “retainer” and “generalist” merely describe the broad nature of each different business model; but it’s the detailed inner formula—the business model and its implementation—that’s really the key to success.

Most of the business models I’ve studied can provide a wealth-creating framework for the aspiring recruiter. These include the multi-desk franchise, the home-based solo operation, the split-network model, and so forth.

Occasionally, a business model can break down. For example, the resume-distribution model made lots of recruiters rich a few years ago when mid-level candidates were in short supply. When the market suddenly produced a surplus of candidates, the business model became obsolete, resulting in a riches-to-rags scenario for resume-blasting recruiters, no matter how hard they worked the system.

However, most recruiters fail not because of their system, but from fighting a system that already works. Chances are, your current business model works just fine. Remember, the characteristic common to top recruiters isn’t that they all use the same system; it’s that each works his or her system to the point of perfection.

Feeding the System
Take a good look at your system and what it needs to operate at maximum efficiency. If you feed the machine what it likes, you’ll be rewarded. Starve it, and you’ll be punished.

For example, a multi-desk office with five recruiters tends to reward conformity and punish non-conformity. The system works best when fueled by recruiter synergies, a homogeneous candidate population and economies of scale. So recruiters who work the same (or overlapping) desk specialties and generate split business will succeed more easily than non-conforming recruiters who try to orbit alone, outside the critical mass.

If you’re not sure what to feed your system, ask your manager. If you run your own business, you may need to tweak to your system to maximize your profits—or tweak your recruiters to maximize your system.

Whenever I attend a company or network meeting, I listen carefully to the top-producing recruiters as they accept their awards at the podium. And every time, it’s like deja vu—the acceptance speech is exactly the same.

“Thank you very much for giving me this award,” the winning recruiters say as they gaze at their silver trophies and Caribbean cruise tickets. “But I don’t deserve all the credit.

“All I really did was work the system.”

Return to Top             Printer-Friendly Version




[Show all Recruiter Training Products, Services and Resources by Bill Radin]

©2007, All Rights Reserved 
w 5320 Eagleswatch Court w Cincinnati, OH 45230
Customer Care: 800-837-7224 or
w Privacy Policy w Terms of Use