Recruiters can earn money in a few different ways depending on the type of recruiting they do.
Here is a simple breakdown:
1. Contingency Recruiting (Most Common)
Recruiters only get paid if they successfully place a candidate in a job.
How they make money
- The employer pays the recruiter a fee based on the candidate’s first-year salary, usually 15%–30%.
- Example: A recruiter fills a $80,000 position with a 20% fee → they earn $16,000.
Who uses this?
- Companies hiring for mid-level jobs
- Sales, admin, customer service, IT, etc.
2. Retained Recruiting
The company pays the recruiter upfront to find candidates payment is not tied to hiring success.
How they make money
- The employer pays a portion upfront (e.g., 1/3 to start, 1/3 mid-search, 1/3 upon completion).
- Fees are typically 25%–35% of annual salary.
Who uses this?
- Executive searches (C-suite, VP roles)
- Highly specialized positions
3. Staffing Agencies / Contract Recruiting
Recruiters place contractors who work hourly for the employer.
How they make money
- The agency bills the employer a higher hourly rate than they pay the contractor.
- The difference (the markup) is the agency’s profit.
Example:
- Contractor earns $45/hour
- Agency charges employer $65/hour
- Agency keeps $20/hour
- Paid weekly as long as the contractor works.
4. RPO (Recruitment Process Outsourcing)
Companies outsource their entire recruiting process to a firm.
How they make money
- The employer pays a monthly or annual contract fee for recruiting services.
- Sometimes includes performance bonuses.
5. Internal Corporate Recruiters
These are full-time employees of a company.
How they make money
- They earn a salary and sometimes a bonus, but NOT per hire.
Summary
| Recruiting Type | How They Get Paid | Typical Fee |
| Contingency | Paid only if candidate is hired | 15%–30% of salary |
| Retained | Paid upfront in stages | 25%–35% of salary |
| Staffing/Contract | Keep markup on contractor’s hourly rate | Varies |
| RPO | Monthly/annual contract | Varies |
| Corporate Recruiter | Salary + bonus | N/A |
Can you create the IT recruiters’s job description?
Here is a clear, professional IT Recruiter job description you can use for resumes, job postings, or understanding the role:
IT Recruiter – Job Description
An IT Recruiter is responsible for identifying, attracting, and hiring top technical talent for an organization.
They work closely with hiring managers to understand technology requirements and ensure a smooth, effective recruitment process for roles such as developers, engineers, analysts, architects, and IT leadership positions.
Key Responsibilities
1. Talent Sourcing & Outreach
- Source candidates through LinkedIn, job boards, referrals, social media, and technical communities.
- Build pipelines of qualified IT professionals for current and future hiring needs.
- Conduct proactive outreach to passive candidates.
2. Candidate Screening
- Review resumes and portfolios to evaluate technical skills and experience.
- Conduct initial phone screens to assess technical knowledge, communication skills, and culture fit.
- Coordinate technical assessments and coding tests as required.
3. Hiring Manager Collaboration
- Meet with IT leaders (e.g., CTO, IT Manager, Dev Leads) to gather job requirements.
- Advise on market trends, salary benchmarks, and availability of technical talent.
- Develop effective job descriptions and recruitment strategies.
4. Interview Coordination
- Schedule interviews between candidates, technical teams, and leadership.
- Prepare interviewers by sharing evaluation rubrics and candidate profiles.
- Guide candidates through the interview process, ensuring a positive experience.
5. Offer Management
- Collaborate with HR and hiring managers to create competitive offers.
- Negotiate compensation and start dates with candidates.
- Ensure smooth onboarding handoff to HR.
6. Recruitment Reporting
- Track hiring metrics (time-to-fill, cost-per-hire, source effectiveness).
- Maintain accurate candidate data in the Applicant Tracking System (ATS).
- Provide weekly hiring updates to leadership.
Key Skills & Qualifications
Technical Knowledge
- Understanding of common IT roles (e.g., software developer, system admin, network engineer, cloud architect).
- Familiarity with programming languages, cloud technologies, and infrastructure basics.
Recruiting Skills
- Strong sourcing abilities using LinkedIn Recruiter, Boolean search, and ATS systems.
- Excellent interviewing and assessment skills.
Soft Skills
- Strong communication and relationship-building abilities.
- Negotiation and conflict-resolution skills.
- Ability to multitask and manage multiple requisitions at once.
Education & Experience
- Bachelor’s degree in Human Resources, Business, IT, or related field (preferred).
- 1–5+ years of technical recruiting experience.
- Experience in agency or corporate tech recruiting environments.
Common IT Roles an IT Recruiter Fills
- Software Developers/Engineers
- Data Analysts / Data Scientists
- DevOps Engineers
- Cloud Engineers
- Cybersecurity Analysts
- IT Support / Help Desk
- Network & Systems Administrators
- Product Managers / Business Analysts