NPAworldwide will celebrate its 64th year of facilitating split placements next year, so it’s fair to say we’re biased on this topic. Splits are an excellent way to diversify your business focus. They can help you increase your geographic reach. Splits also offer economical business expansion for boutique recruitment firms. If any of these items keep you awake at night, consider adding splits in 2020.
Diversify Your Business
Split placements can help you fill roles in additional occupations and niches. If your engineering client suddenly needs a CFO, a good split partner means you can say yes with confidence. If your niche is softening, let your split partners serve as your business development division and source candidates for THEIR jobs.
Increase Your Geographic Reach
Do you have the ability to source candidates in Germany when your client opens a new manufacturing facility there? Are you knowledgeable of the salary and compliance laws in Australia? How do you interview candidates effectively with a 9 hour time difference between your locations? Many recruiters are intimidated at the prospect of accepting global assignments. Split placements are a perfect solution. Your in-country partner can help source and interview candidates, and may also be able to assist in the details of the offer, local business customs and more.
Economical Business Expansion
As a business owner, you’ve likely grappled with how to effectively grow your business. In many instances, real growth involves a significant investment of capital. Since the outcome is not guaranteed, it’s a risky model. For recruitment firms, it typically means hiring additional recruiters. In turn, you may also need to provide equipment, software, tools and support, and training. You’re committing to ongoing overhead costs with no guarantee that they will be productive enough, all the time, to cover those costs. Split placements mean reaching out to trusted partners when you need them. You don’t need to train them or purchase a LinkedIn seat. When the role is filled, you’re not continuing to pay. If managing people is not your strength, this model will reduce the amount of time you spend on that activity. In turn, that gives you more time to spend on placement activity.
Split placements are not a magic pill to cure all of your business pain, but when done properly can be an outstanding supplement for your firm.