The average salary for a recruiter in the United States is around $95,000. However, this can range from $35,000 to $200,000 based on experience, industry, and region.
Despite this, the so-called Great Reshuffle has caused a substantial shift in the compensation expectations of many job applicants, including recruiters. Before the 2020 outbreak of the COVID-19 pandemic, recruiters already had a 115% higher propensity to consider job offers from outside their field than employees in other fields.
As the US economy slowly revives, seasoned professionals in the field are hailing the current period as “The Golden Age of Talent Acquisition.” Since 2021, the Society for Human Resource Management (SHRM) reports, businesses have been hiring like mad to fill open positions, often turning to staff agencies for assistance. For this reason, recruiters’ starting pay has increased as their services’ demand has skyrocketed.
You may be thinking, “How are recruiters paid fairly?” given the high demand for their services. Possibly you’re wondering, “What do recruiters even do?” In this article, we’ll discuss the average income of a recruiter and what you can expect to earn in this line of work based on your experience and the current state of the economy.
The field of recruiting is not suitable for everyone. The typical compensation of a recruiter can be affected by several factors, including the recruiter’s specialty, location, and industry. The regular income for a senior recruiter working in-house at a company is roughly $56,000, whereas an experienced recruiter working for a staffing agency can make well over $200,000. Various recruiters exist, each with their duties and typical salary range.
Human Resources within the Organization
Internal recruiters are employed by a single business or nonprofit. They receive a paycheck from their employers, just like other people in full-time jobs. Bonuses for recruiters who exceed HR-mandated targets are not out of the question.
Many internal recruiters will be tasked with building a pool of applicants for open positions and keeping tabs on hiring statistics. Insightful data may include employee retention rates and the sources of recruitment interest. Companies can use the information in analytical reports to better understand and refine their recruitment and employee retention strategies. Companies sometimes include internal recruiters in their larger talent acquisition strategy.
Salary of a Company’s Internal Recruiter
An entry-level, nontechnical recruiter with less than a year of experience can earn $45,000 a year on average, according to PayScale.com. This includes bonuses and overtime. Base salaries for human resources recruiters in the middle of their careers could approach $56,000. However, senior recruiters might earn an average wage of $60,000 or more yearly. (Note that while these are the most up-to-date wage data, specific recruiters’ base salaries—and benefits—may be greater depending on the need for highly skilled recruiters.)
It is common knowledge that a person’s compensation improves as they gain work experience. Some internal recruiters boost their annual income by pursuing professional credentials in various fields. The SHRM certification is just one example; technical recruiters in the medical and legal professions may also choose to get industry-specific qualifications.
External Recruiting Organizations
There is a wide variety of external sources of recruitment. Agency recruiters are well-known figures frequently found working for hiring agencies. Finding independent recruiters, or “headhunters,” who work independently is also possible. Headhunters are third-party individuals or businesses who actively seek out, evaluate, and present qualified candidates for open positions.
Salary of a Company’s External Recruiter
Most of the compensation for external recruiters comes from a commission. The commission is typically a percentage of the candidate’s first-year base salary. However, it can also be a flat sum offered by the client (the company the candidate is placed in). Typically, it’s the client who decides on this format.
The candidate’s remuneration remains the same, and the customer pays the agency in advance when an external recruiter is paid a percentage of the candidate’s first-year basic salary. The term “contingency fee” is used to describe this monetary incentive. When a recruiter successfully puts in a candidate, the agency typically receives 100% of the contingency fee. The agency and the recruiter will then each receive half of this charge. The conventional starting point for such fees is 20%.