Write the rules down
- Who gets credit for the client and the candidate?
- How are fees split when more than one consultant is involved?
- How are credits, refunds and drop-outs handled?
- When does commission become payable?
Record the split on the placement
Agree and record the split when the placement is made, not at month end. It is easier to agree while everyone remembers who did what.
Make statements visible
Give consultants a clear statement showing every placement, their share and any adjustments. Transparency builds trust.
Keep a league table
A league table of fees by consultant keeps targets visible and makes recognition easy.
A worked example
Imagine one consultant owns the client and another finds the candidate. A simple rule might split the fee evenly. Another agency might weight it towards the candidate side for hard-to-fill roles. What matters is that the rule is written down before the placement, applied consistently and visible on the statement.
Handle adjustments openly
Refunds, rebates and early terminations change what was earned. Show adjustments on the statement against the original placement, so consultants can see exactly why a figure changed.
Common causes of disputes
- Splits agreed verbally and never recorded
- Rules that changed without notice
- Statements that show totals but not the placements behind them
- Different managers applying rules differently
Link commission to the right behaviours
Consider whether your scheme rewards margin as well as fees, and whether it encourages collaboration between consultants. Clear split rules make it easier for people to work together on a placement.
How Tandem helps
Tandem records fee splits on each placement, keeps a live league table and generates commission statements for the whole team in one go.