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Are split placements part of your annual business plan?

by Veronica Blatt

With the start of a new year, many recruiters are developing their annual business plans. Will split placements be part of your business mix this year? Split placements can help level out revenue fluctuations, but it takes time to build the solid relationships that allow splits to flourish. With the continued angst in the US over Obamacare and a sluggish jobs recovery, as well as lingering economic issues around the world, global recruiters really should consider split placements as a way to stabilize, and even increase, revenues. Here are some examples to consider:

  • Your current niche is soft (or softening). Working split placements can help you diversify into niches that are more robust.
  • Your current geography is depressed. If your jobs are located in ‘undesirable’ geographies (high cost-of-living, poor housing, etc.), split placements can help boost your business beyond your current geographic limitations.
  • Your clients are nervous about expansion plans. If your current clients have put expansion plans on hold because they are unsure what the future will bring, reach out to recruiting partners whose clients ARE growing. Remember, someone is ALWAYS making money!
  • You have more jobs than you can fill, but don’t want to hire more staff. Split placements offer economical business expansion – you pay your partner when you need their services, without ongoing costs for equipment, larger office space, etc.
  • You have a good database of in-demand candidates, but not enough jobs. Every recruiter I know is screaming for candidates. If you’ve got ’em, there are people who will help you place them on a split-fee basis.
  • You have jobs that are outside your normal area of expertise. You’ve been placing HR candidates at your best client for 15 years, and now they want you to provide engineers? Reach out to an engineering recruiter who has (or can find) the talent your client needs, without having to invest tons of time/money into learning a new niche from the ground up.

If you are currently experiencing even ONE of these situations in your recruiting firm, split placements may be the solution. Will this be the year you commit to splits?

 

Posted in: Split Placements

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