Real-Life Math
You're a technical recruiter working for a recruiting firm
in a large city. You joined the firm with the understanding that you would
initially receive a salary, in order to give you time to cultivate employers
and sign on qualified candidates.
Yesterday, during your 6-month progress
review, your supervisor informed you that he feels you're ready to begin
working on commission. You're confident this will mean a substantial
rise in income. Before taking the plunge, however, you'd like to calculate
exactly how much money you would have earned last month if you had been receiving
a commission instead of a salary. To do this, you need to calculate and compare
the 2 figures.
You review your notes and find that last month you filled
5 job openings. If you had been on commission, you would have received 25
percent of the fee that each employer paid the recruiting firm. The policy
at your firm is to bill an employer the equivalent of 3 months' salary
for each candidate that is hired.
First Hired Candidate
-- Junior Database Analyst
Annual Salary -- $42,000
Second
Hired Candidate -- Junior Computer Programmer
Annual Salary -- $32,000
Third
Hired Candidate -- Senior Programmer
Annual Salary -- $48,000
Fourth
Hired Candidate -- Technical Writer
Annual Salary -- $36,000
Fifth
Hired Candidate -- PC Analyst
Annual Salary -- $48,000
Your
annual salary was $24,000.
There is one complication. Two weeks ago,
another candidate for whom you found a position months earlier quit after
working only 90 days. That person was making $34,000. It is standard policy
at your firm to reimburse an employer if one of the candidates that they have
placed quits within a 180-day period. Since you are still on salary, the firm
will undertake this obligation. Normally, however, you would be expected
to reimburse the client for the number of days short of 180 that the applicant
did not work.