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?
In a split placement, the prevailing wisdom is that the partner providing the candidate is at the most risk of financial harm. The fee is paid to the partner working with the client. The candidate provider (we say ‘exporter’ in NPAworldwide) is completely at the mercy of the partner to pay them as promised.
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.
