Recruiter Commission Census 2025: Benchmarks & Insights

Introduction: Why Commission Structures Matter More Than Ever

In a fiercely competitive post-pandemic market, recruitment agencies are under pressure to drive performance while protecting profitability. As your highest cost and most powerful motivator, your commission structure plays a pivotal role in this balancing act. The 2025 edition of the Recruiter Commission Census - compiled with input from over 250 recruitment brands - reveals how high-growth and high-margin agencies are engineering smarter, leaner, and more performance-focused commission models.

Whether you're revisiting your scheme to improve cash flow, attract top talent, or align team behaviour with business goals, the data in this year’s report provides a roadmap to success. Here's what the best in the business are doing - and what you can learn from them.

1. Tiered Commission Structures Dominate—Because They Work

77% of recruitment agencies now use tiered commission schemes, a 10% increase year-on-year. Among the most profitable agencies, this figure skyrockets to 90%.

Why Tiered Schemes Work:

• Gamification: They introduce natural performance incentives through visible targets.

• Retention of margin: Under-performers don't cost the business disproportionately.

• Reward top performers: Higher output is matched with higher reward.

Agencies still using flat-rate schemes risk under-rewarding top billers and overpaying low performers. A tiered model aligns commission with contribution - and it's become table stakes for ambitious firms.

2. Thresholds Are No Longer Taboo—They're a Competitive Edge

Once controversial, thresholds are now embraced by 56% of agencies—up 14% in a year. The average threshold is now £6,000, rising to £6,167 for the most profitable firms.

Key Findings:

• 74% use exclusive thresholds, meaning commission only kicks in after the threshold is hit.

• 63% of fastest-growing firms use thresholds.

• 100% of most profitable agencies apply thresholds to manager schemes.

Thresholds serve two core purposes:

1. Protect margin no matter the economic conditions.

2. Encourage accountability and performance focus, whilst protecting from overpayment on under-performance.

If you’re worried about setting the bar too high, consider that thresholds scale with team size and performance expectations. Fast-growing companies don’t see thresholds as a barrier—they see them as a standard.

💡 Pro Tip: Introduce thresholds alongside strong onboarding and coaching. Without support, they can feel punitive—especially to junior recruiters.

3. Monthly Cadence Is King, But Layered Schemes Are the Future

69% of agencies pay commission monthly. But here’s where the smartest operators set themselves apart: Layered cadence schemes - which combine monthly and quarterly elements - are up 48% year-on-year.

Benefits of Layered Cadence:

• Smoothens payouts across highs and lows.

• Reduces sandbagging, where consultants delay deals to game the system.

• Drives long-term performance, not just quick wins.

For example, you may have a monthly commission scheme paying at modest rates, plus a quarterly kicker or accelerator that substantially boosts payouts on attainment of target. This layered structure motivates consistent performance without sacrificing immediate reward.

4. Average Payout Rates: The Real Numbers

The average recruiter commission payout is now 15.84%, but this rises to 16.91% in the fastest-growing agencies - around 7% higher than market average.

Why It Matters:

• More isn't always better - it’s about intelligent allocation. Tiered schemes ensure high rates are only earned through high performance.

• Top-tier rates in some agencies reach up to 60%, especially in highly incentivised, senior or niche billing roles.

Smaller agencies tend to pay higher percentages due to lower operating leverage, while larger firms rely on scale and thresholds to optimise cost.

If you’re stuck paying high flat rates across the board, this is a clear sign to recalibrate.

5. Manager Schemes: Overlooked, But Crucial

Manager incentives are often bolted on or under-invested - but the data proves their strategic importance. 100% of most profitable firms use manager thresholds, and 61% of all agencies use quarterly cadence for management schemes.

Key Manager Metrics:

• 71% include thresholds

• 3.86% average payout rate (rising to 5.5%+ in top firms)

• Most popular threshold method: Team target-based

If your business is growing, manager compensation must reward leadership, not just individual billing. A well-structured manager scheme aligns their success with the performance of their team - exactly what high-performing businesses need.

🚀 Best Practice: Combine team-based thresholds with tiered bonuses for high-performance team members. This incentivises both personal and leadership KPIs.

6. Payment Timing: Monthly in Arrears Is the Market Standard

1 month in arrears remains the industry norm for commission payment, whether based on start dates, timesheet approvals, or invoicing. This gives the business time to validate the deal while keeping payouts timely, particularly where short payment terms and debtor history allow (i.e. 30 days or less).

Emerging Trends:

• "Pay-when-paid" models are increasing - especially in tight markets - but still in the minority.

• Super-fast or same-period payouts are rare and often unsustainable unless cashflow is bulletproof.

⚠️ Watch Out: Paying too early can cause serious cashflow issues. Stick to arrears unless you have a rock-solid collections cycle.

7. Tech and Automation: The New Standard for Scale

Manual commission tracking is not just inefficient - it’s a risk. 75% of leaders admit they have issues with their current commission setup. Half are planning changes in 2025, and 33% of fastest-growing firms are investing in tech to manage commission better.

Why Commission Tech Matters:

• Automates calculations, reducing errors

• Increases transparency, building trust with consultants

• Supports tiered, role-based, and layered schemes with complexity at scale

✅ If you’re scaling, investing in tech isn’t optional - it’s essential. The Konquest Platform is purpose made for recruiters.

8. The Direction of Travel: What’s Changing in 2025

Recruitment leaders are actively refining their strategies:

• 36% plan to restructure their commission schemes

• 25% of most profitable firms plan to increase thresholds

• 33% of fastest-growing firms are implementing new systems

As agencies evolve their models from 360 to more specialist structures, this is accelerating the need for role-based schemes. Already, 58% of agencies use different schemes for different roles - a figure that rises in mid-sized and large firms.

🛠️ Next Steps:

• Audit your current scheme for clarity, scalability, and fairness.

• Identify quick wins: layering cadence, introducing thresholds, and tiering rewards.

• Align incentives with your growth strategy - short-term billing vs. long-term value.

Final Thoughts: Compete Like the Best

Want to compete like the most profitable and fastest-growing firms? Here’s the winning formula:

✅ Tiered commission structures
✅ Smart thresholds to protect margin
✅ Layered cadence to align short- and long-term results
✅ Tech-enabled automation for accuracy and transparency
✅ Transparent, performance-driven manager incentives

Whether you're an SME or scaling into the mid-market, this year’s commission census gives you the insight to benchmark, optimise, and outperform.

Bonus: Free Commission Scheme Health Check

If this data has got you thinking about your own setup, Konquest offers a no-obligation Commission Scheme Health Check. We’ll benchmark your scheme against the census data and give you tailored advice on how to improve performance, visibility, and ROI.

👉 Book Your Health Check Now

About Konquest
Konquest is the #1 platform for managing recruitment commission. We automate calculations, engage your team with gamified dashboards, and help you scale performance - Commission Accomplished.

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