“Part of my question comes from our discussion in Charlotte about moving someone from research to doing more outreach. Part of the hesitation was that she could expect more pay, which would tie into performance-based pay. – Trevor

Trevor, you do not appear like a miser. If your company grows 50%, and she is part of that, I imagine you would bonus in alignment with that growth. Notice, I am not saying it has to be 50%, but based on her contribution. Alternatively, you can give her a bonus, maybe $25 – $50, on every individual she sources who interviews.

Understanding the Perceived Value of Motivation

Growing up, I was never a waiter or a server at a restaurant. Many of my friends were, and they tip like 40% to 50%. I have never seen a friend who was a waiter or waitress tip 10% or 15%. They consistently overtip.

Owners have a similar perception that they must give out this massive amount of money to motivate somebody going from research to sourcing. That feeling is based on their perspective of the $20,000+ fee. Your sourcer was not a former recruiter making 30%, 40%, or 50% of the deal.

Strategies for Performance-Based Compensation

You can come up with an amount of money. I would recommend an amount, if she is doing the sourcing, to teach her how to do really good presentations for your submission. Compensate her a flat dollar amount for every interview because it is closer to the locus of her control. A placement is really out of her control. Finally, you can still give her another bonus on a placement if you want.

Example Bonus Structures for Recruiting Sourcers

Let’s say you were going to pay somebody a $1,000 bonus if a sourcer made a placement on a $25,000 fee, totally in alignment. If I were giving them $1,000, I might say, I am going to give you $500 as a bonus if your candidate gets hired, and I’m going to give you $50 for every first-time interview. It will still be about $1,000, but it brings that motivation to every part of the deal. If they source somebody this week, it could be an interview next week, and that money will be in their next paycheck.

In Metrics We Trust

This goes back to the very beginning of the conversation when we talked about – and I know you do this, Trevor – but trusting in the metrics, knowing that if your interview ratio is 6:1, every six interviews she helps you arrange is an incremental placement.

Great question.

P.S. Whenever you’re ready… here are 4 ways I can help you grow your recruitment business:

1. Grab a free copy of my Retainer Blueprint

It’s the exact, step-by-step process of getting clients to give you money upfront. https://get.therecruiteru.com/lm​

2. Join the Recruiter Think Tank and connect with firm owners who are scaling, too. It’s our Facebook community where smart recruiters learn to make more money and get more freedom. https://www.facebook.com/groups/there​​…

3. Join me at our next event

3x a year, I run a 3-day virtual intensive, sharing the 9 key areas that drive a 7-figure search firm. Click here to check out the dates of our upcoming event. https://get.therecruiteru.com/rich

4. Work with me and my team privately

And if you ever want to get some 1:1 help, we can jump on the phone for a quick call and brainstorm how to get you more leads, more placements, and more time. https://get.therecruiteru.com/scale-now​

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