Talenture RS offers comprehensive Financial functionality for recruiting agencies to handle client billing, invoice generation, set revenue targets and revenue tracking.
In this article we will cover the elements of revenue tracking including commission rules, revenue generation actions, setting revenue targets for team members and reports to track revenue generation.
Talenture RS provides complete support for managing the financial performance of your recruiting business. The Revenue Tracking functionality enables tracking the placements done and the corresponding revenue that has been generated.
- Revenue is generated based on the commission rules that you define for clients as per your contractual terms.
- When recruiters mark joining of candidates for Jobs, Talenture RS automatically applies the commission rule formula on the joining CTC and calculates the revenue.
1.1 Financial Arrangements Between Agencies and Clients
Staffing agencies typically charge commission as a percentage of the Cost to Company (CTC) of a placed candidate, fixed rate etc.
a. Common Commission Arrangements
- Percentage of CTC: For example, 8.33% of the CTC on which the candidate is placed.
- Fixed Amount: An agency may charge a fixed amount for each placement done such as Rs. 50,000/- for each placement.
- Slab-based: Agencies may have different percentage or fixed amount slabs based on the position level, experience or CTC brackets. For e.g. an agency may charge 8.33% of CTC for an entry level position while the next slab may be 12.5% for a middle level position and so on.
1.2 Setting up Revenue Tracking in Talenture RS
Following are the steps to set up revenue tracking:
a. Define Commission Rules: Define Commission Rules based on which revenue calculation is done. These rules are defined at the client level in the Client Detail Screen.
Rules can be of the following types:
- Fixed/flat rate or percentage of CTC on which the placement is done. For e.g. a fixed amount such as $2000 or percentage such as 12.5 % of CTC etc.
- Slab-based rates – varying fixed or percentage rates based on position level/band, CTC or experience range.
For e.g. you can define 3 different rules with rates of 8%, 12.5 % and 15 % of CTC for junior, middle and senior level positions respectively.
- You can define multiple commission rules for the same client.
Screenshot of ‘Commission Rule’ definition screen.
b. Attach Rule to a Job & Assign Financial Role: After you’ve defined commission rules for a client, you need to link the applicable commission rule to each Job that you create for the client and assign a user to the ‘Financial’ role.
To do this, follow these steps,
- In the ‘New Job’ screen, on the ‘General’ tab, select the applicable commission rule from the Commission Rule drop-down.
- In the ‘Roles’ tab, select a team member in the ‘Financial’ role drop-down, This user will then be able to generate the invoice for candidates that are placed for the Job.
c. Revenue Targets: Team managers can create revenue targets for team members and then evaluate performance based on achievement of these.
- Create new Revenue Targets from the Targets and Revenue->Revenue Targets data view in the Workbench.
- You can define a Target for a specific recruiter or set a common Target for all members of a Team.
- You can also set the period for which the target will be applicable such as monthly, quarterly etc.
- Once a target is created you can edit it at any time as required.
Link of Targets to Recruitment Actions
- Once assigned, targets are linked with the revenue actions performed by each recruiter.
- When a revenue action i.e. placing a candidate by marking the candidate as ‘Joined’ for a Job, is performed by a recruiter, Talenture RS will reflect the revenue posted against the target assigned to the recruiter.
d. Revenue Actions: A revenue action in Talenture RS is a recruitment action performed on a candidate that results in revenue being posted based on commission rules. A revenue action will result into revenue generation eventually when an invoice is raised on the posted revenue and the invoice amount gets collected.
You need to perform the revenue action to trigger posting of revenue which will in turn get credited against the target assigned.
To initiate a revenue action,
- Mark a candidate as ‘Joined’ for a Job – at this point the commission rule gets applied and revenue is calculated automatically.
To view the revenue actions and targets assigned you can use the following views in your Workbench:
- My Recruiting->Targets and Revenue->Revenue Actions: Shows the revenue posted for placed candidates.
- My Recruiting->Targets and Revenue->Revenue Targets: Shows the targets assigned.
e. Revenue Tracking Reports: Talenture RS provides focused revenue reports views in the Reports module regarding variation of revenues with respect to time duration, clients, teams etc. Accounting persons within the team can access these to track revenue generation and target achievements:
You can access the revenue related reports from the following data views in the Reports module:
- Team Management->Manual Reports->Revenue Summary: This workbench node provides report views for analyzing your teams’ revenue achievement client-wise, target-wise and so on.
- By Target View: Use this view to get a report of the revenue generation that has been achieved by your team members against the targets assigned to them.
- By Period: This provides report views showing revenue posted for actions performed by your team members in specific periods such as Daily, Weekly etc.
So to sum up you can use Talenture RS’s commercial features to track revenue generation and tracking business performance.
You can create multiple types of commission rules for calculating any type of commission and set monthly, quarterly targets for team members. Once defined, rules are auto-applied on marking candidate placement.
Use revenue views and reports for measuring team performance and analyzing revenue generation.
2. Related Resources