Starting a Placement Agency in Ahmedabad: How Should I Structure Incentives for HR Executives and BDOs?

Hi All,

I am going to start my own placement agency in Ahmedabad, but I do not know what incentive structure I should establish for HR executives and BDOs. I would appreciate it if you could provide me with details about the incentive structure.

Looking forward to your reply.

Thanks,
Kamal

Hi Kamal,

I am also working in a Recruitment Firm. Generally, incentives are based upon billings made by the employee.

For example, suppose anybody is doing $60,000 in billing, then only do they get incentives (5%, 10%, etc.) on the billing amount. The salary of that person is a fixed salary plus incentives. Incentives may increase if the billing amount goes beyond $60,000 per month.

Regards,
Joy

Hi Joy,

Thank you for the reply. I would like to know whether it would be the same for both HR executives and BDOs, or if it will differ?

Looking forward to your reply.

Kamal

Hi Kamal,

First, you need to set targets for the recruiters. If they reach the targets, then you can give incentives. You can't give incentives to performers as well as non-performers. If you give incentives to non-performers, there is no scope for improvement.

You can set the targets monthly or quarterly. For BDO, it depends on the business they will generate and the number of closures.

Regards,
Satya

Hi Satya,

Thanks for the reply. I have a query in my mind. How can we set the targets for HR executives? Since the business acquisition will be handled by BDO exclusively, will HR executives focus solely on searching and validation?

Searching and validation will depend on the acquisition process. The number of requirements we have will directly impact the extent of searching and validation needed. How should we go about setting targets for HR executives during such times?

Looking forward to your reply.

Kamal

Dear Kamal,

You need to set targets for your executives if you are looking for good success because in a recruitment agency, the person who earns for you is the recruitment executive, not the BDO.

One executive needs to generate a minimum billing amount of Rs. 25,000/- to break even because what we often fail to consider is the amount we put into the database, office administration, internet connection, telephone costs, computer, and rent. All this work amounts to a minimum of Rs. 25,000/-, which can be more if you have a small team.

From my experience as a consultant, many times executives do not reach this target. Incentives vary based on company policy.

Bankim

Hello, Mr. Kamal,

The incentive structure should be based on performance, so please consider his performance and provide him with 25-28% incentives.

Narendra C.
:icon1:

What is the current scenario of incentive structure in recruitment agencies?

In the dynamic landscape of recruitment agencies, the incentive structure plays a vital role in motivating and rewarding recruiters for their efforts. Understanding the current scenario of incentives can provide valuable insights into industry trends and practices. By examining the incentive structures in recruitment agencies, we can gain a better understanding of how these incentives impact the performance and success of recruiters. Ultimately, staying informed about the latest developments in incentive structures can help recruitment agencies attract top talent and stay competitive in the market.