Published: about 21h 47m ago
How Your Commission Structure Could Cost You £500,000 Over Your Career
- rec 2 rec
Time Is The Real Currency In Recruitment
We talk so much about money.
But time is the real currency.
Time to save for a house.
Time to clear your mortgage.
Time to build investments.
Time to retire earlier.
Time to actually enjoy the life you’re working for.
In recruitment, your commission structure determines how much of that time you own.
And over a 15–20 year career, the maths becomes uncomfortable.
Same Billing. Completely Different Outcomes.
Let’s take a consultant billing £250,000 per year.
That’s roughly £20,833 per month.
Now let’s compare three structures.
1. A Poor Scheme (Common in Corporate Environments)
Example:
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£5,000 monthly threshold (no commission below this)
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£10,000 – £15,000 @ 10%
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£15,000 – £20,000 @ 15%
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£20,000+ @ 20%
At £20,833 per month:
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First £5,000 = no commission
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£5,000 @10% = £500
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£5,000 @15% = £750
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£833 @20% ≈ £167
Monthly commission ≈ £1,417
Annual commission ≈ £17,000
Blended rate: 6.8%
At £250k billing, you’re effectively earning less than 7% of what you generate.
This type of structure protects company margin aggressively.
It feels manageable early on.
Over a career, it’s extremely expensive.
2. A Mid-Level Tiered Structure
Example:
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10% up to £30k
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20% up to £50k
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30% thereafter
At £250,000 billing:
Annual commission typically lands between
£43,000 – £50,000
Blended rate: 17% – 20%
Better.
But still heavily weighted toward business protection over consultant upside.
3. A Strong Performance-Led Model
Example: Threshold + Accelerator Model
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£3,500 monthly threshold
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20% on billing above threshold
-
Quarterly kickers:
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£35k = +2.5% uplift
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£50k = +5% uplift
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£75k = +7.5% uplift
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£100k = +10% uplift
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At £250,000 billing:
Annual commission ≈ £62,000
Blended rate: 24.8%
Now you’re approaching a genuinely performance-led structure.
You’re keeping roughly a quarter of what you generate.
That difference compounds fast.
Now Stretch It Over 15 Years
Assume consistent £250k billing.
Poor Scheme
£17,000 per year
Blended: 6.8%
15 years = £255,000
Mid-Level Scheme
£46,000 average
Blended: ~18.5%
15 years = £690,000
Strong Scheme
£62,000 per year
Blended: 24.8%
15 years = £930,000
Difference between poor and strong over 15 years:
£675,000
That’s life-changing.
That’s:
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A house bought and paid off quickly
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Financial independence
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Early retirement runway
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Or simply decades with less financial pressure
Why This Matters
Commission structures shape behaviour.
High thresholds punish slow starts.
Low blended rates flatten ambition.
Quarterly accelerators reward consistency.
Retro models reward performance properly.
Corporate recruitment firms often operate tighter, margin-protective commission structures.
They optimise for predictability and shareholder return.
Many independent firms that genuinely value retention and high performance build structures that accelerate earlier and reward output properly.
On top of better commission many of our clients also reward performers with annual bonuses and in the long term profit share.
Over 15–20 years, that difference compounds dramatically.
The Real Question
It isn’t:
“What’s the top percentage?”
It’s:
“What’s my blended rate at my realistic billing level?”
Because that blended rate determines:
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When you buy your house
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How quickly you build wealth
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How long you need to work for
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How much stress you carry
Recruitment isn’t a one-year sprint.
It’s a career.
And over 15–20 years, your commission structure decides how much of your lifetime you’re properly rewarded for.
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