Need Help Crafting an Incentive Plan for My Recruitment Company – Any Framework Suggestions?

Hi, I am looking for a sample of an incentive plan for my recruitment company. Kindly help me with the basic framework structure. 

Thank you.

Thank you very much for your reply. Since we have opened a new venture in the recruitment industry, most of the recruiters have only 1 year of experience, and I am not aware of their performance. Therefore, it is a bit challenging to decide on incentives. I have two ideas:

1. After 3 closings, provide an incentive of, let's say, 1000/- per closing.
2. Categorize the recruiters based on their CTC, set a fixed target, and then offer a percentage on achieving the target.

What do you suggest?

Regards,
Sonica

What we did in our company some time back was that we allocated a certain percentage (5% to be precise) for the total collection (not billing) by an individual recruiter. For the Team Leaders, it was 1.5% of the total collection of his/her team, and for the head of business (Operations Manager), it was a total of 0.75% of the company's total collection. Hence, 7.25% of the total collection was allocated towards incentives.

No calculations are done on billing values and offers rolled out. It is good to roll out seasonal bonuses over and above the incentives, like a Diwali Bonanza or a New Year Treat, in which the person with the lowest Billing to Collection ratio gets rewarded (maybe a cash incentive) with a cap of a minimum collection of, say, 2 Lacs.

Ask me for help if you need it :)

Hi Sonica Choudhary, Since this is a new venture, I am not aware of the worth of positions we will obtain from the BD guy or what revenue will be generated through recruitment. That's the reason I am confused about what should be the fair target for BD and recruiters so that, in the end, they are motivated with the incentive part, and moreover, the organization also meets up with good revenue.

Regards,

Setting Targets for Recruiters and BD Teams

Generally, the target should be four times the annual CTC of the recruiter, broken into months and quarters. The target should always be for collections. Similar targets should be given to the BD team. For the sake of fairness, give at least 30% more targets to the BD teams, as not all the mandates they receive may get closed.

Hi, please help me create the incentive structure for Business Development (BD) personnel.

Incentive Structure for Business Development

For example, if a BD person has a monthly target of 6 Lac, what percentage of the target can be given as an incentive?

Regards

Incentive Structure for BD/Recruiters

Generally, for BD/Recruiters, you should offer incentives only upon collection. For instance, a collection of 6 Lacs from the clients of a BD professional should fetch them an incentive in the range of 5 to 7%, which is a significant amount. Five percent of 6 Lacs is INR 30,000. When combined with the salary of this individual (let's say 15 to 20k), they can earn anything in the range of 45 to 50k if they complete the target.

There should not be any incentives for acquiring business; they should only be paid upon the execution of mandates and getting them banked into the company account.

Cheers

Please find the attachment for the incentive plan and let me know if it is feasible or if any amendments are required. Kindly reply soon.

Thank you.

Regards,

Please suggest which mode is more cost-effective: giving incentives to recruiters based on a percentage or on a fixed basis. If based on a percentage, please mention the slab rate that can be effectively practiced to create a win-win situation.

Regards,
Pooja

I have some doubts about the incentive plan for BDM. As a BDM, I should achieve 4 times the CTC of the business. Let's assume CTC = 2,40,000 monthly, which means 20,000. Therefore, to achieve the business target, it should be 960,000. Additionally, it is required to acquire 30% more business for closure, which equals 960,000 + 288,000, totaling 1,248,000.

Suppose the BDM acquires a business (non-converted) of 600,000 in the first month, regardless of closure, with 50,000 converted. In this case, the remaining target would be 648,000 for the remaining 11 months to acquire business. Please explain how this aligns with your current incentive plan and the 6L incentive scheme for BDM.

Hello,

I am looking for an incentive plan for an organization.

Hello Team,

Please guide me regarding the evaluation for the team. It's my first job as a Team Leader in a recruitment startup firm. I have to evaluate the performance of three recruiters on a weekly basis and also plan targets and incentives for them.

Hello,

Please share incentive plans for recruiters and the Team Leader role for a recruitment consultancy.