Real-Life Math
You're a personnel recruiter. You're considering taking on an assignment
to find an upper-level executive for Fuel Ex Oil and Gas company. It's a job
with quite a few responsibilities, and it requires someone with
plenty of experience in the industry.
After discussing the job requirements
thoroughly with the client, you tentatively agree to take on the assignment.
Of course, you must also discuss your payment before finally accepting.
Payment
for personnel recruiters is quite often based on the salary of the job applicant
they are assigned to find. "We could take 15 to 30 percent of the annual salary
of the executive we find," says personnel recruiter David Spry. "These numbers
all have to be negotiated with the client."
The Fuel Ex executives say
that they are going to offer the new employee a salary of $12,000 per month.
"We
are punching in figures on the calculator every day," says Spry. "We calculate
salaries by the hour and by month."
This is the deal you offer:
If
payment is received within 15 days of finding the job applicant, you will
ask for 15 percent of the executive's annual salary as payment. If payment
is received within 30 days, you will require 20 percent of the executive's
annual salary.
- If the executive earns $12,000 per month, how much do you stand to receive
if the client pays you within 15 days?
- If the executive earns $12,000 per month, how much do you stand to receive
if the client pays you within 30 days?