As the director of membership for NPAworldwide, I occasionally am asked by independent recruiters how our network is different and better than Fee Trader. In my opinion, neither one is necessarily better than the other as they are so very different. As an independent recruiter, deciding which to join will depend on how you like to work, and how much of a relationship-based recruiter you are.
1. Structure
NPAworldwide is a member-owned and -run network of independently-owned recruiting firms that work together to make split placements. Owners of the firms set the strategic direction of the network. The network is led by a Board of Directors of owners of member firms and has a selective membership process. At the end of the year, profits are reinvested in the network to continue and improve services to our members.
Fee Trader promotes itself as a recruiting tool and platform for outsourced/agency-side recruiters and employers to partner with each other through job bidding.
2. How positions/candidates are exchanged
NPAworldwide uses a live, web-based sharing tool for members to post jobs and candidates freely. The members are able to search these databases, as well as search for recruiters and firms based on location or specialty. Each position lists the fee schedule and guarantee. When a member has an interest in working a position, they are able to send candidates directly to that firm or recruiter, and have access to all of their contact information to connect through a phone call or email to see where they are in the search. There is no limit on the number of positions that an independent recruiter can submit candidates to or work on, and the split placement is the result of a placed candidate.
In Fee Trader, a network of staffing agency recruiters can view the posted jobs and respond with candidates (or synopsis of abilities) and “bids.” The bids provide the fee amount the recruiters would be willing to charge for filling the employer’s or other recruiter’s open position with one of their candidates. Recruiters are unaware of competitive bids made by other recruiters; therefore, they must be as competitive as possible with their bids to secure the business. Employers and other recruiters then have the option to accept or decline the bids made.
3. Cost of the Network
Fee Trader has a $150 start-up fee and then monthly costs ranging from free to USD $199 per user, per month based on plan details. To utilize all of the employer features and also to be able to bid on numerous jobs per month you will need to upgrade to the higher monthly plans. Fee Trader pays the placing recruiter a ‘commission rate,’ which is a percentage of the fee that the client pays to Fee Trader. NPAworldwide has a one-time enrollment fee of USD $500 plus dues of USD $190 per month for a typical North-America, single-location firm (pricing varies by location and/or number of locations being enrolled). Brokerage in NPAworldwide is 2.5% from each partner.
4. Networking Meetings and Conferences
NPAworldwide strongly encourages members to participate in its annual global conference as well as numerous global networking meetings to utilize one of the oldest business tools, face-to-face networking. During these meetings, strategic ownership meetings for the direction of the network take place, as well as trading group breakout sessions, industry leader presentations, and social activities to establish camaraderie. The goal of the network is to have deep relationships established among independent recruiters.
Fee Trader does not have networking meetings or conferences, but prides itself on the transactional business opportunities recruiters have to access employer jobs directly, as well as bid on other recruiter jobs for split fees. By using this model, you are able to bid at whatever amount you feel comfortable to secure a job.
In conclusion, which option is better for independent recruiters to join – NPAworldwide or Fee Trader? It depends! NPAworldwide is a relationship-based network facilitating split placements among its members. The members are then able to market themselves to employers as being part of the network and having access to ethical trading partners globally. If you prefer to work on a transactional basis, then you should consider Fee Trader, and have more direct access to employer postings and be able to secure these positions with your own bids. Or, if you are undecided, you may want to consider joining both and experiencing them each firsthand.
If you do consider joining Fee Trader as an independent recruiter, I suggest you take some time to understand their rules and regulations in regards to candidate ownership and other safeguards. NPAworldwide has time-tested bylaws and an operations manual that clearly define these.
As an independent recruiter, which option do you prefer?
Thank you for your diligence in researching our product and posting this informative comparison of our models. We have great respect for NPA and what it provides to its members! I did want to offer some clarification on a few of your points about FeeTrader.
Bidding on placement fees only takes place between agency recruiters and employers via employers posting job reqs on FeeTrader specifically seeking agency recruiter assistance. The split-network, an integrated but separate feature, is simply a 50/50 split unless the poster of the job req opportunity wants to clearly indicate a different split (i.e. 60/40, 40/60, etc): a rare occurrence.
Although our signup fee is $150, it is currently and has thus far always been waived and we have no plans to change that.
FeeTrader does not charge a brokerage fee for any split-deals and there is no limitation on jobs worked, submissions or placements. In only a very slim percentage of cases, FeeTrader has a brokerage fee for coordinating the direct employer full-fee placements. These cases we term SVP (Single Vendor Plan) where the employer has specifically required that FeeTrader be the broker of the deal. This is usually a result of their policy against having multiple new contracts with multiple vendors. FeeTrader allows these job req opportunities as a fall back plan for those employers who would otherwise be unable to participate. Our flagship full-fee job reqs are termed Direct Relationship Plan (DRP) which allows direct client contact and zero brokerage fees. As an included feature, employers and agency recruiters can also open their positions to direct candidates through our partnership and cross posting with over 30 job sites. We are building FeeTrader as the ultimate agency recruiter business development and placement delivery tool. Employers and agency recruiters can currently participate in all of FeeTrader’s features for $99/mo (month to month).
FeeTrader does not have live conferences (which is a great service of NPA’s!), however, our platform does allow users to build their own custom teams within their accounts that allows seamless exchange of reqs amongst members of their own “preferred recruiters”. FeeTrader strongly encourages building long-term relationships with other members.
Sarah, thank you again. Please feel free to call me at 303-867-0162.
All my best, Scott Croasdale (scott at feetrader.com).
Scott,
Thanks for the clarifications and the positive way you are helping us inform recruiters about the options they have. Your organization is providing a good service to independent recruiters. As you are aware, being a financially healthy independent recruiter can be a challenge in the current environment. It is great when recruiters decide not to go it alone and select a great partner to work with.
I am very interested in learning about this ubject.