Does it seem that the “War for Talent” is more often a war between recruitment agencies? Perhaps agency clients feel it advantageous to pit recruitment agency vs. recruitment agency to get better service and lower prices? In a recruitment network, I see the opposite as true…top talent, quickly, effectively and at a fair cost can be delivered by recruiter collaboration. It is time to have recruitment agencies suspend the competitive battle and collaborate for success.
While clients and candidates are often unaware of the common practice of splitting fees, most recruitment agencies and recruiters have tested this alternative model of recruitment. It is obvious that agencies would prefer to fill all openings themselves and not be required to split the revenue with a partner. What is less obvious is the benefit that all can receive if recruiters approach each placement with the concept of getting the best candidate into the job as quickly as possible. A split fee, recruiter collaboration, is often one of the best ways to accomplish what all parties have established as the priority.
The thing that blocks recruitment agencies from collaboration is the desire to maximize revenue. What agencies fail to recognize is that multiple recruiters chasing a single job opening on a contingent basis offers a strong likelihood of zero revenue for all but one firm. The successful firm will be providing the best candidates with the greatest speed. If collaboration increased the speed and pool of candidates, that means agencies working in collaboration are increasing the chance of receiving income from a search. As the saying goes, “Half of something is better than 100% of nothing.”
So what holds recruitment agencies back from successful splits? It is usually a combination of three things: Trust, philosophy , and know-how.
Trust is necessary to make a split work. View the other agency not as a competitor, but rather as the client. Easy to say hard to do. Information needs to flow freely and trust is the lubricant that makes that happen.
Agency business philosophy needs to be realigned to make recruitment success the goal rather than revenue. Revenue will flow from recruitment success and the opposite is also true. If not successful in finding the candidate quickly and effectively, no revenue will result. So get over the issue of “I need it all” and start thinking “I want to be first and best.” A collaboration will support this philosophy better than a competition.
Know-how comes from experience. So start giving it a try. Don’t expect immediate results and begin finding other agencies that “get it.” See if the trust is there.
If you have little time or patience for failure, consider joining groups of recruitment agencies that are already successful in splitting fees. There are many great formal and informal groups doing splits. Look for years of success and tools that will create the trust that makes information flow. Some groups have bylaws and best practices that control the interaction to make sure success is mutual.
Do you have any stories of recruiter collaboration that resulted in a success? Please share your story!
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