From time to time, we get asked if there are certain types of recruitment firms that are more well-suited to split placements than others. There are certainly many different ways to operate a successful recruitment firm. For firms that participate in splits, there are even many different ways to be successful. But if you don’t have a long history of making split placements, and are wondering if they would be a good addition to your firm, here is a pretty good list of attitudes and attributes to have. If you can answer YES to 7 or more of these, congratulations! Split placements are likely a great source of incremental revenue for your recruitment firm.
- You have too many jobs and/or candidates. Do you have more jobs than you can reasonably fill on your own? Or more qualified candidates than you can reasonably place (particularly in a well-defined niche)? If you’re in danger of losing placements to a competitor because you’re overwhelmed, splits can help you fill your job openings or place your candidates, and still keep your clients and candidates satisfied with your performance.
- You don’t have enough jobs and/or candidates. If you are struggling to find good job orders, have recently lost a major client, or need more candidates in your pipeline, consider splits. We are fond of saying there is always *someone* making money, so splits can help even out the lulls in your business.
- Your current specialty is slowing/soft. All business is cyclical in some ways. We often see sales get hot at a different time than manufacturing, for example. Or a certain geographic region that is more robust than another.
- You would rather have half of something than all of nothing. Recruiters who are successful at split placements recognize that half of a fee is better than no fee.
- You want to add capacity, but not overhead. If you’d like to expand your business without creating more overhead, split placements can be a good solution. Working with partners on an as-needed basis allows you to work in additional industries, occupations, or geographic regions without hiring, training, or supporting additional staff.
- You have a high degree of trust along with good infrastructure. There’s an old saying, “Trust everyone, but count the cash.” When working splits, it’s imperative that you have a high degree of trust. It’s equally important to have good infrastructure in the form of either a formal network that supports you, or really great written contracts that govern splits.
- You are a very good communicator. Split placements can include a fair amount of risk. Almost all of the risk can be mitigated, if not completely avoided, by simply being a really excellent and frequent communicator.
- You are open-minded and flexible. When working splits, it’s helpful if you are able to adapt to different ways of doing business. If you have a very rigid process and are not open to different ideas or methods, you are likely to experience a high degree of frustration with split placements.
- You enjoy working collaboratively. If you prefer to work alone and manage the entire placement process, split placements may not be a good solution in your business. Successful splits require a willingness to work cooperatively on deals.
If you’re currently making splits, have I missed anything important? If you’re not making splits, which items on the list above are getting in the way? Comment below!