What is Normal Reimbursement for 3rd Party Recruiters?

I work for a 3rd party agency, and our expenses are paid 100% when we make client visits or take people out to lunch. My employer just announced that we may go to a 50% reimbursement plan, and eventually, no reimbursement at all. They said that this is the standard for the industry. Is that true?

I just don't see myself taking as many clients out to lunch if I'm footing the bill.

What is your company's policy?

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Permalink Reply by pam claughton on December 18, 2008 at 2:14pm

Tell them if they'd like to change your percentage to 100%, you'd consider footing part of the bill. Otherwise that is an expense that should come out of the large percentage they keep from your placement.

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Permalink Reply by Michael Fortin on December 18, 2008 at 2:20pm

You have to foot the bill for clients .... yea right!

That's a bit of a joke if I ever heard one unless your the owner or an indy recruiter.

I own my company and if someone wants to take a client out I will pay for it, same thing goes for their mileage to and from clients.

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Permalink Reply by Jennifer McClure on December 18, 2008 at 2:57pm

Hi Justin,

I'm a TPR/Executive Search Consultant in a small retained search firm. I'm responsible for 100% of the expenses related to developing my business - including travel, lunches, etc. However, the % of the overall fee I'm eligible for is 50%, which is higher than colleagues I've spoken to at similar firms in my area. I'm also eligible for an additional 10% if I bring in a certain amount of revenue each year. I'll take the higher % of the fee, and make wise decisions about the expenses I incur to build/maintain my business. I like this approach. It re-enforces that I'm responsible for growing and developing my own business within the business, and I can also reap the rewards. So, depending upon how your current comp is structured, maybe you can ask for a higher % of the overall fee to make up the difference.

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Permalink Reply by Jerry Albright on December 18, 2008 at 3:27pm

Justin - I will volunteer right here and now to reimburse you 100% of any business lunches you would like to make on my company's behalf. The closer those clients are to me the better - but I'll take 'em all!

OK. Now seriously. I really don't know how to reply other than a blanket statement so here goes: That is ridiculous!