Not All Split Placement Platforms are Created Equally

by Sarah Freiburger

As the Director of Membership of a split placement network, one of the first topics that come up with recruiters considering membership is if they have formerly, or are currently making split placements. Further questions reveal they didn’t make the split placements the “traditional” way. Instead, they provided a candidate to an employer via an online service like BountyJobs or Scout. 

In 2020, I have found that  the “recruiter community” language for split placements has changed. You can no longer assume that when recruiters state they have made split placements that it occurred the “traditional” way.  Specifically, what I mean by “traditional” way is when a recruiter with a job works directly with a recruiter with a candidate and the candidate is hired by the employer. This results in the two recruiters splitting the client fee.

“Traditional” split placements happen in one of the following ways:

  1. Informal Network
  • Recruiters form their own, usually small, network of trusted trading partners. Most savvy recruiters will have signed split fee agreements even if they make splits with recruiters they have known for a long time.
  • In addition, larger informal split networks exist online in various Facebook groups or on Linked-In. It is not unusual for recruiters in these informal networks to have never met face-to-face or know much about the others background. 
  • If you are a recruiter considering making split placements with other recruiters or are currently making split placements and do not have an agreement signed with the other recruiter, check out our sample split fee agreement which can be used as a starting point to create your split agreement.
  1. Formal Network
  •  A recruiter pays to participate in a formal network. In NPAworldwide, members pay one-time enrollment fees, monthly dues, and brokerage payments when split placements occur.
  •  Networks can have a general focus or specialize in an industry or niche. In NPAworldwide, we have over 10 practice groups that help specialized recruiters navigate the community and easily form relationships or customize their experience to their most prevalent industry.  Some networks may include members located in only one country or state and others, like NPAworldwide, have members throughout the world.
  • Formal networks should have rules of engagement so that trust can build among its members. If the formal network is not built on trust, an environment develops where split placements will not flourish. The rules of engagement will typically include how to handle candidate referrals, client poaching, permission to advertise, etc . Also, a formal network should address what happens if something in the split placement process does not go well. Of course, clear and written communication between the recruiters can minimize these situations. As a cooperative of independently-owned recruiting firms, NPAworldwide recruiters are bound to act within the Bylaws approved by our members.
  • Signing the network’s membership agreement or contract binds its members to abide by its rules of engagement and may eliminate the need for a split fee agreement to be signed between trading partners. In NPAworldwide, a separate split fee agreement between trading partners is not necessary since the owners of the member firms signed the NPA Membership Agreement.

In contrast, split placements that come about from a client utilizing Bountyjobs or Scout are only labeled splits because the online platform itself is taking a percentage of the fee off the top. Many frustrations can exist in these types of splits due to the transactional nature of the placement, as well as the loss of candidate ownership and lack of direct communication and relationship building. 

If you are considering adding to your bottom line, consider all of the above when making the best decision for your independent recruiting business.


5 Things Everyone Gets Wrong About Recruitment Placement Fees

by Veronica Blatt

image of contract representing placement fees protectionToday’s guest blogger is Wilson Cole. He is the CEO of BackdoorHires.com and Adams, Evens & Ross, the nation’s largest credit and collection agency designed exclusively for the staffing and recruiting industry. In 2008 he was inducted into INC Magazine’s, “INC 500” for being the CEO of Adams, Evens & Ross, the 307th fastest-growing privately held company in America. Adams, Evens, & Ross has helped more than 3,000 staffing and recruiting firms recover more than $1 billion in past-due debt and is an NPAworldwide Endorsed Program.

There are 5 main things people get flat out wrong about recruitment placement fees. Most of the things people get wrong are before they even have a candidate get back door hired and have to go chasing down the money they have already earned. Number 1 is getting a contract signed. Number 2 is avoiding arbitration clauses in your contract. Number 3 is knowing you have the right to remain silent when someone does not pay you. Number 4 is knowing when to turn it over for collections. Lastly, number 5 is never telling your client you have voided their contract. If you can do these 5 things, you will help yourself out tremendously in not getting back door hired in the first place, but also making it much easier to collect the debt. Read the rest of this entry »


What Is the Definition of a Successful Recruiter?

by Veronica Blatt

Today’s guest blogger is Laura Schmieder of Premier Placement Inc., specializing in manufacturing especially engineering, operations, supply chain, sales and marketing roles globally. She currently serves on the NPAworldwide board of directors.

I’ve been pondering off and on for years “the meaning of success,” especially during the awards season. How do they decide the Best Actor, Best Picture, Best Director? It’s all a bit subjective, because it certainly isn’t determined by box office sales OR the profits made once a movie goes out for distribution. It shouldn’t be popularity – how many tickets are sold or logins for streaming. It should be a performance that so moves you that you think about it for a very long time, at least in my opinion! Subjective decision.

What is the definition of a successful recruiter? Read the rest of this entry »


Improve Client Service with a Split Fee Model

by Veronica Blatt

There are a lot of reasons why we believe a split fee model makes sense for recruitment firms across the globe. NPAworldwide Chair-Elect Jason Elias of Elias Recruitment in Sydney was a recent guest on The Resilient Recruiter podcast to discuss this topic. We often discuss splits as an option to even out cyclical fluctuations in cash flow, or as an economical means of business expansion. Jason sees value in split fee placements that allow him to serve his clients more effectively. Read the rest of this entry »


Coach Your Clients to Make Candidate Interviews Personal

by Dave Nerz

image of candidate interviewsRecruiters, coach your clients on candidate interviews. The trends over the years have bounced back and forth from employers asking really quirky questions that had little to do with job performance to full-on behavioral interviewing with little to no time for the personal aspect of a candidate. Likely, somewhere in the middle is a good place to land. Recruitment best practices have long had a mix of job, skill, performance and personal aspects of the candidate in the mix. Help your clients add back the personal aspect without creating risk to themselves or the company. Read the rest of this entry »


Need More Reviews? How to request (and receive) them with every email…

by Veronica Blatt

Today’s guest blogger is Jack Shanes, U.S. Channel Sales Manager of Rocketseed, the first-choice, for over a decade, in email signature marketing and management software. Loved by thousands of marketers and IT professionals across the globe. Rocketseed helps your emails to come to life and allows you to engage with clients, partners, and potential candidates with a more targeted approach to marketing, helping you meet your recruiting goals.

Having the option to update and schedule banners quickly and efficiently allows you to change strategies as often as the trends in the staffing industry change. Reaching the right person, with the right message, at the right time.

Reviews matter. They build customer trust, enhance your brand’s reputation, and boost your business’s ranking online. From purchase decisions to search results, reviews bring their own rewards.

Of course, you could just ask outright, in a dedicated email or a customer service phone call. But while it’s direct, doesn’t it seem a bit….pushy? Read the rest of this entry »


Your ‘Competitor’ May Be Your Best Ally

by Liz Carey

The recruiting world to some is a “dog eat dog” or “every man for himself” arena. But another recruiter who works the same niche as you, or works in the same geographic area as you, should be seen as a valuable asset – someone who you can glean insight from, bounce ideas off of, and talk through obstacles with. This is one of the biggest perks of joining a split placement network, but is often overlooked as many see the main goal of joining would be to add income to your bottom line through split placements.

It’s not uncommon to have members of a split placement network who don’t actually do splits, but choose to stay in the network for the camaraderie / relationships and knowledge they get in return.

In fact, two longtime NPA members have been friends for 20 years, but have never made a split together. But their trading partnership is still valuable because they talk to each other constantly about business, ideas, and NPA.

“It could be needing an opinion, learning how they do something, or finding out about a new technology they’re using. Being able to pick up the phone and call someone, whether they’re in the next state or country… Everyone has different information they can share, and that is very valuable. Especially if you’re a solo recruiter or in a small office,” one of the recruiters said.

To this end, NPAworldwide offers its members a peer coach program. In this program, a new member is paired up with a successful member, who offers guidance/support during their on-boarding period, explains how they found success in the network, and helps answer questions (like: How do I plan to integrate NPA with my current workflow/day? or, How will my staff make use of it?).

One of the things NPA members find most valuable is attending the annual global conference, where meeting your trading partners face-to-face can solidify existing relationships, and start new relationships. In addition, they learn from speakers who are leaders in the recruitment industry, as well as from their peers during round-table discussions and breakouts. Similarly, on monthly NPA practice group calls (which are held for various practice groups and regional areas), participants will often discuss topics like industry trends and recruiting tools they find useful, or even asking for advice about candidates who ‘ghost’, or clients who have a slow hiring process.

Another tool that NPA members use to leverage the expertise of their peers is NPA’s forums, which members use to ask questions about technology and tools that people are using (from video interviewing to ATS systems to sourcing tools), or how they handle candidate visa situations, or requesting others’ contracts/fee agreements for examples), etc.

Yes, a recruiter working in the same niche or geographic area may be initially seen as a ‘competitor,’ but they don’t have to be. Working together to leverage your industry knowledge may end up in a great business relationship… and who knows, maybe even a split or two!

 

 


Recruitment Stats to Get You Thinking!

by Dave Nerz

Here are a few recruitment stats I found interesting:

Best Day to Post

The number one day for hiring managers to post opportunities is Monday, so be on the lookout at the beginning of the week for new job postings. Professionals who are among the first 25 to apply to a role are 3x more likely to land the job, so being an early applicant gives you a clear advantage. Read the rest of this entry »


Year-End Split Placement Summary

by Veronica Blatt

split placement summaryNow that 2019 is officially in the rear-view mirror, it’s a good time to show a split placement summary of the activity we saw in our network. We break down split placement data in lots of different ways. Today I will focus on salaries and practice areas. Read the rest of this entry »


5 Ways to Shorten Time to Make Placements

by Veronica Blatt

Today’s guest blogger is Bill Benson with WilliamCharles Search Group located in Grand Rapids, MI. WilliamCharles is an executive search and professional recruiting firm specialized in finding managerial and executive talent in finance, HR, operations, sales/marketing as well as president/CEO roles. They have a concentration of clients in Michigan but they also work across the US. Bill is the chairman of the NPAworldwide Board of Directors.

Time kills deals in our business. Anything you can do to move things faster will help you win the battle against time. Read the rest of this entry »