Split fee recruiting can be an excellent way to smooth out the bumps along the journey, especially for small firms. All small businesses can struggle with cash flow and recruitment is certainly no different. In a jittery market like we’re seeing now – with a slowdown in hiring, a hoped-for cut in interest rates, and an upcoming presidential election – small recruitment firms find themselves at the whim of “wait and see” hiring plans. Those who are actively engaged in splits are less likely to feel the impacts. Here are a few reasons why:
Access to more candidates
Split fee recruiting can open up a larger pool of potential candidates. If you’re struggling to find candidates for your jobs, good split partners can help address those needs. Demographics in most major world economies show a lack of available candidates in many market sectors. The current slowdown in hiring doesn’t magically create more available workers, so this is a good time to work on a split fee basis.
Access to more jobs
We’re hearing from members all over the world that they are increasing business development efforts to access more jobs. If your current clients have slowed down, or stopped, hiring, split fee recruiting is a great business development tool. Seek out recruitment firms that have jobs and offer to partner with them by providing candidates. Or consider asking your existing clients for jobs in sectors or geographies that you don’t normally cover.
Geographical or niche expansion
A market slowdown forces everyone to get more creative in how they bring in new business. Existing customers are your easiest source of new jobs – they already know and value the service you provide. They may be hiring in other sectors or geographic areas than where you normally help. Ask! Then lean on your split fee recruiting partners to help you succeed. This may be the perfect opportunity to show your best client that you can help them expand into a new country, or that they can rely on you to fill all of their hiring needs regardless of occupation or niche.
Split fee recruiting can be an excellent strategy in your business, but it’s not a magic bullet. It takes work, trust, and good relationships. Clear agreements can reduce the potential for disputes. Commit now and you can still see results this year.