How Are Placement Commissions Calculated?
Overview
This article outlines how placement commissions are calculated. To accurately determine what to pay contract/temp employees, you must know the number of hours they have worked (not shown). Use either Bullhorn’s time card solution () or a third-party time card solution to capture that data.
In the example below, the corporation is set to have the default burden rate of 14% and the worker's comp rate is set to 0%:
Placement Commissions Calculations
Placement commissions are calculated via the following fields:
| Field on the Commissions Tab | Calculation / Where It Pulls From |
| Bill Rate (clientBillRate) & Pay Rate (payRate) | Pulls directly from the same fields on the Placement record. |
| Mark-up | Bill Rate - Pay Rate |
| Mark-up percentage (markUpPercentage) | Mark-up / Pay Rate |
| Hourly Burden | Pay Rate x Burden Rate |
| Hourly Workers' Comp Cost | Pay Rate x Worker's Comp Code Rate. For more information view Managing Workers' Compensation Codes. |
| Hourly Referral |
Pulls from the Fee Type field in the 3rd-Party Vendor Referral Costs section on the candidate's placement record. To display this field on the placement record, un-hide the candidateSourceID field from the Candidate entity in Menu > Admin > Field Mappings. You must have Bullhorn Corporate or Enterprise Edition to make these changes. |
| Additional Hourly Cost |
Pulls from the value listed in the Other Hourly Costs field on the candidate's placement record. To display this field on the placement record, unhide the otherHourlyFee field from the Placement entity in Menu > Admin > Field Mappings. |
| Standard Hourly Cost | Pay Rate + Hourly Burden + Hourly Referral + Additional Hourly Costs |
| Hourly Gross Margin/Profit | Bill Rate - Standard Hourly Cost - Hourly Worker's Comp Cost = Hourly Gross Margin |
| Internal Commissions | Displays the names of the recruiters (candidate owner) and sales reps (job owner) involved in making the placement |
| External Commissions | Can be used as a reference for non-Bullhorn users or, if applicable, people outside of your company |
| Split |
The percentage of the recruiting or sales commission the individual will receive. Bullhorn defaults each Split % to 50%, but you can change that value by typing a new one into the field on the individual record. The default Split % can be customized by the Bullhorn Professional Services team. If you're interested in receiving a quote for the customization, please see Contact Bullhorn Support. |
| % of Gross Margin | The percentage of the hourly gross margin the recruiter or sales rep will receive |
| Hourly Commission |
(Hourly Gross Margin x % of Gross Margin) x Split |
Additional Information
If you want to change the internal commissions attributes, see Customizing the Commissions Tab