What is your plan for increasing revenue next year? It’s been a difficult year for many small recruitment firms. Trade policy has been all over the board. Jobs have been on hold. Layoffs are increasing, but candidates are still scarce. Tariffs are disrupting supply chains and manufacturing. Changes to visas make it harder to employ foreign workers. While we’re seeing some signs of improvements, it’s like to still be somewhat bumpy at least in the early part of next year as well. On the cusp of our 70th birthday year, NPAworldwide can confidently say that split placements remain a great option for recruitment firms to diversify their businesses and increase revenue.
What are the benefits of splits?
There are many benefits to doing split placements, including:
- Accessing more candidates
- Diversifying into new geographies, new verticals, or new niches
- Affordable scalability
- Improved service to clients
- Better market position and a competitive advantage
- Additional revenue
How do split placements help recruiters adjust to market conditions?
- If you have too many jobs, and not enough candidates, split placements can provide a way to access a larger pool of candidates.
- If you have too many candidates, and not enough jobs, rely on your split partners to share their open roles.
- If you want to toe-dip into a new market, split placements can help you quickly learn what you need to know and give you a leg-up on your competition.
- If your primary specialty is in a prolonged downturn, consider splits as a way to keep revenue coming in until market conditions improve.
- If your client approaches you about a role that is outside your primary focus, a split placement is a great way to strengthen that relationship.
Here are a few more reasons to consider splits:
- If you don’t want to manage clients, or conversely would rather only manage clients, splits allow you to play to your strengths.
- If you don’t like managing a team, you can build a network of like-minded recruiters that you don’t need to train or supervise.
How can you get started making splits?
There are numerous ways to make split placements. Many recruiters reach out to trusted colleagues. Others join informal groups on LinkedIn, Facebook, or other social (or F2F) channels. Still others join formal networks like NPAworldwide. If you want to work on splits without the benefit of a formal organization, make sure you have clear, written agreements with your partners that define how the work will be shared, how the payment will be split, when payment will be received, and other critical components. Make sure the fee details are shared, including whether or not a moneyback guarantee is required in the event of a fall-off. Discuss whether escrow might be appropriate for safeguarding funds through the guarantee period. Always be willing to do more than half the work and err on the side of over-communication.