As the Director of Membership for NPAworldwide, I speak to many independent recruiters who are considering joining that are very familiar with the idea of split placements, have considered implementing them into their business model, or a good percentage of their business already involves split fees. Here are just 5 key reminders you should abide by and look for in others as you make successful split placements or are joining a network.

1. Your trading partner’s time is just as valuable as your own. If you have reached out to a trading partner or posted a job, you owe them the acknowledgment and information to make their time worthwhile. Do not ask your trading partners to work jobs that do not have a chance of success, or that you are already almost closing on. Having chosen to be involved in a split placement network or agreeing to make split placements means that you are viewing your trading partner as your equal, and should treat their time and diligence as you expect yours would be treated. This goes hand in hand with sharing as much information as you can about the job order, keeping them updated on status changes, etc.
2. Do not only give out needle-in-a-haystack jobs. A successful splitter realizes that being able to take on larger client orders or take on more clients means a growing business, and uses their trading partners to fill many jobs more efficiently. Only relying on, or wanting a trading partner for those nearly impossible-to-fill roles is not a beneficial situation for both parties, and will make it harder to establish long term trading partners willing to give your jobs attention.
3. Their candidates deserve the same respect as yours. A trading partner who provides you with strong candidates should be given the same consideration and attention that you give those candidates you find yourself. They deserve to be kept informed once they are in process, and even given bad news if they are not chosen for a role, as you may end up filling a similar position again. Trading partners will notice and appreciate the way you treat their candidates, and use it as a reflection of how you treat your clients or other trading partners as well.
4. Not everyone recruits the same way you do. While in a split fee recruitment network, or searching for trading partners on your own, you are going to come across a variety of personalities and business styles. None of these are bad, just different from your own and in order to make split placements, their style needs to be respected. If they require four phone calls for clarity on a position to present you with a star candidate, then the reward will be reaped in the end. If their style completely does not work for you, tell them instantly, so you both can move on to other trading partners and opportunities.
5. Pay immediately and true to contract. Those independent recruiters that do not give reason to mistrust them are the ones that deliver payment in the amount, and in the time frame agreed upon. If you are getting a 25% fee from your client, you owe your trading partner 50% of that, and you owe them the minute you receive payment. The most common frustration I hear from recruitment firms wanting to join our split placement network is their concern that the posted fees will be less than what that recruiter is getting from their client, so the split placement is unequal and unfair. In this instance, make sure that you are joining a network operated on bylaws and ethics that prevent this from happening, such as NPAworldwide.

As the Director of Membership for NPAworldwide, I occasionally am asked by independent recruiters how our network is different and better than others. As an independent recruiter, deciding which to join will depend on how you like to work, and how much of a relationship-based recruiter you are.

Structure

NPAworldwide is a member-owned and -run network of independently-owned recruiting firms that work together to make split placements. Owners of the firms set the strategic direction of the network. The network is led by a Board of Directors of owners of member firms and has a selective membership process. At the end of the year, profits are reinvested in the network to continue and improve services to our members.

Most other networks promote themselves as recruiting tools or platforms for outsourced/agency-side recruiters and employers to partner with each other through job bidding or are for profit based, resulting in more transaction based business practices taking place to net profit for the company.

How positions/candidates are exchanged

NPAworldwide uses a live, web-based sharing tool for members to post jobs and candidates freely. The members are able to search these databases, as well as search for recruiters and firms based on location or specialty. Each position lists the fee schedule and guarantee. When a member has an interest in working a position, they are able to send candidates directly to that firm or recruiter, and have access to all of their contact information to connect through a phone call or email to see where they are in the search. There is no limit on the number of positions that an independent recruiter can submit candidates to or work on, and the split placement is the result of a placed candidate. Our network highlights each specific industry as well so a niche recruiter can customize their dashboard and trading partner lists, as well as join industry specific virtual calls and participate in forums geared specifically to them.

In other networks, it is common that recruiters can view the posted jobs and respond with candidates (or synopsis of abilities) and “bids.” The bids provide the fee amount the recruiters would be willing to charge for filling the employer’s or other recruiter’s open position with one of their candidates. Recruiters are unaware of competitive bids made by other recruiters; therefore, they must be as competitive as possible with their bids to secure the business. Employers and other recruiters then have the option to accept or decline the bids made. This type of arrangement puts up a lot of walls in building relationships.

Cost of the Network

What is the investment to be apart of a network? Is there a startup cost, monthly fee, fee per transaction, etc? What levels of membership are available and what type of return on your investment do most members see? NPAworldwide has a one-time enrollment fee of USD $500 plus dues of USD $195 per month for a typical North-America, single-location firm (pricing varies by location and/or number of locations being enrolled). Brokerage in NPAworldwide is 2.5% from each partner so nearly a 50/50 split between trading partners. NPAworldwide also has a very robust job board and spends money on advertising member’s jobs which is another unique feature. A successful job board placement is really just pay for success advertising, with you keeping 88% of the fee. As an independent recruiter, not having to manage and maintain monthly job board subscriptions is an immense return on investment of both money and time.

Networking Meetings and Conferences

NPAworldwide strongly encourages members to participate in its annual global conference as well as numerous global networking meetings to utilize one of the oldest business tools, face-to-face networking. During these meetings, strategic ownership meetings for the direction of the network take place, as well as trading group breakout sessions, industry leader presentations, and social activities to establish camaraderie. The goal of the network is to have deep relationships established among independent recruiters.

Marketing and Branding

Finally, a last thing to consider is what type of marketing and branding does the network offer you? NPAworldwide is a relationship-based network facilitating split placements among its members. The members are then able to market themselves to employers as being part of the network and having access to ethical trading partners globally. Being a single point of contact to 1600 recruiters worldwide is not something many can claim. The network provides an entire collection of materials that recruiters can use online on their website or social media platforms, or even documents to send clients to stand out from other agencies.

If you do consider joining another split placement network as an independent recruiter, I suggest you take some time to understand their rules and regulations in regard to candidate ownership and other safeguards. NPAworldwide has time-tested bylaws and an operations manual that clearly define these.

As an independent recruiter, which benefits of a split placement network are important to you?

On a search for split placement opportunities, many recruiters seem to question what is the difference between some of the online platforms that they have seen or are currently researching. Here at NPAworldwide,  I occasionally am asked by independent recruiters how our network is different and better than BountyJobs. In my opinion, neither one is necessarily better than the other as they are so very different. As an independent recruiter, deciding which to join will depend on how you like to work.

The following is a brief summary of the key differences between NPAworldwide and BountyJobs:

1.    Organization Structure
NPAworldwide is a member-owned and -run network of independently-owned recruiting firms that work together to make split placements. The network began in 1956 and has grown into a network of more than 500 firms located throughout the world.

Owners of NPAworldwide firms set the strategic direction of the network. The network is led by a Board of Directors of owners of member firms and has a selective membership process. At the end of the year, profits are re-invested in the network to continue and improve services to our members.

Membership gives independent recruiters and small firms a way to compete in a global marketplace without sacrificing the unique qualities that distinguish them from larger competitors. Members rely on our split placement network to build relationships that result in more effective and efficient service to clients and candidates in their own market. Those relationships translate into enhanced revenue-generating opportunities and increased financial stability. In the process, members also add value to their businesses through improved speed, reach, and capacity.

BountyJobs is a privately-owned company so I do not know how profits are spent or distributed. The organization appears to be a good solution for large employers managing a high volume of open positions resulting in the need for them to manage relationships with many recruiters.

2.    Work Style
Success in NPAworldwide is a result of the relationships built between recruiters. The quickest way to build trust with potential trading partners is to meet face-to-face at one of our conferences. Of course, if that is not possible, recruiters develop relationships through telephone, Skype, and/or email conversations.

In BountyJobs, independent recruiters only work with employers and have limited opportunities to build a relationship with an employer until much later in the hiring process.

3.    Control
In NPAworldwide, recruiters post jobs and candidates in our private, web-based sharing tool called Matchmaker.  Recruiters may work on any job, anywhere in the world. We also have a private Job Board where only NPAworldwide recruiters can post their jobs. Members can post their jobs for free on our Job Board and only pay if they place a Job Board candidate in a job. With NPAworldwide, an individual recruiter is in control of how they work with their trading partners as long as they abide by the Bylaws and operating procedures.

BountyJobs is a one-way street. Employers post jobs through BountyJobs. Then after viewing posted jobs, recruiters may contact employers and request that they be given permission to send candidates to the employers. A recruiter cannot speak with an employer unless the employer authorizes the recruiter to send candidates. After the permission is granted, the recruiter is able to view the full contact information of the employer. Wiith BountyJobs, the employer is definitely in control.

Additionally, NPAworldwide recruiters control the type of guarantee they offer employers. With BountyJobs, recruiters have no control. All recruiters are required to provide a 60-day money back guarantee; no exceptions.

In conclusion, which option is better for independent recruiters to join – NPAworldwide or BountyJobs?  It  depends! NPAworldwide is a relationship-based network facilitating split placements among its members. If you prefer to not build relationships with your trading partners, then you should consider BountyJobs.  Or, if you are undecided, you may want to consider joining both and experiencing them each firsthand.

If you do consider joining BountyJobs as an independent recruiter, I suggest you take some time to understand how candidate ownership is addressed. Specifically, who owns the candidate six months after a recruiter submits the candidate to an employer.

As an independent recruiter, which option do you prefer?