Split Placements

Lean Into It

by Veronica Blatt

runnerToday’s installment was submitted by T. Jeff McGraw of Callos Resource, LLC in Pittsburgh, Pennsylvania. Jeff serves as the chair of the NPAworldwide Board of Directors, and has been a member of the network since 1994. Callos Resource, LLC  provides a broad range of human resource services including recruiting & search, temporary staffing, and PEO services.

No, I am not referring to the title of the second studio album by the American rock supergroup, Mr. Big, released in 1991. Besides, were they ever that well known? Read the rest of this entry »


Independent Recruiters, Split Placements, and Tennis

by Sarah Freiburger

sports-fieldAs many independent recruiters start to explore adding split placements to their business model, different questions arise as to whether they want to split profit, why they would pay to join a network, and most importantly what belongs to whom? Recently picking up the game of tennis, I think many aspects of tennis can be related directly to recruitment and split placements, and perhaps this will give a new perspective on this business model to those on the fence. Read the rest of this entry »


Anatomy of an International Split Placement

by Veronica Blatt

global-connectionsFrom time to time, prospective NPAworldwide members, new members, and even some of our existing members will ask what is involved in making an international split placement. Here is a real-life example of how one such deal came together. The recruiters were Taufik Arief from People Search Indonesia in Jakarta and Julie Parsons from Premium Consulting in Brisbane, Australia. They share their story below:

Who had the job?

Taufik: I received the job opening from my client. Our firm had filled a role for them within our region, which resulted in receiving this new job opening in Brisbane.

Taufik, how did you make your NPAworldwide partners aware of the role?

Taufik: I posted the opening on the NPAworldwide online sharing tool, SplitZone.

Julie, how did you become aware of the opportunity?

Julie: I have a search agent set up that automatically sends me all new job openings in Brisbane. Taufik’s role was included in the search agent.

Had you previously worked together on an international split placement?

Julie: No, this was my first introduction to Taufik. We did get to meet each other face-to-face eventually at an NPAworldwide conference in Beijing, though!

How were candidates sourced?

Taufik: Julie worked the job from scratch to find the candidates.

Julie: I knew I could fill it if I had the trust of my partner and his client.

What was the interview process like?

Julie: Initially, it was NOT easy – there were too many people involved! Taufik was the point of contact with the client in Indonesia, but we also had involvement from HR in China, HR in Singapore, the headquarters in Sweden, plus a hiring manager and me in Australia working with local Brisbane candidates. We had about 2-3 attempts at the job and lost some good candidates because the process was too slow due to all the different people involved from different locations. Once I was able to take direct control of the interviews with the local hiring manager, everything ran smoothly.

What was the offer process like?

Taufik: It took about 3 months from the start to the offer/acceptance. Once we got the client dealing directly with Julie and the local candidates, it was not too difficult. My client needed some assistance and advice in packaging the offer to make it acceptable to Australian candidates.

Were additional hires made?

Taufik: Actually, from the final shortlist of 3 candidates, the client hired two people even though we were only officially working on one vacancy! The client was very impressed with the caliber of candidates that we put forth. Both candidates are still working for the client, and both have been promoted.

Did the candidates have to relocate?

Julie: One candidate was originally from the UK but had just recently moved to Brisbane where the job was. The other candidate was an Iranian living in Sydney; he did move to Brisbane.

Were there any special circumstances such as a visa?

Julie: No visa issues, but we did provide real estate information for housing.

Any other comments you would like to add?

Julie: This was a good experience. Taufik gained additional revenue from 2 more jobs filled due to the initial service the client received. We were able to fill jobs we never had – jobs we would not have received on our own.

Taufik: We have been able to keep expanding our services geographically with this same client with help from our NPAworldwide trading partners. We have made placements for this client in Indonesia, Singapore, and Australia and are now working on a role in India. Collaboration with my partners helps us perform well for our clients, leading to more roles, leading to more collaboration – it is a very positive circle!

Thanks for sharing, and congratulations on your success!

The recruiting process is basically the same whether you are working locally, regionally, nationally, or internationally. Sure, there may be some additional elements, like time zones and visas, that can lengthen the process. With the right partners, recruiters should feel confident saying YES to the clients and to an international split placement!

image of button for free checklist to evaluate split placement networks


Behind the Scenes of a Global Recruitment Network

by Sarah Freiburger

hands and wrenchesAs the Director of Membership at NPAworldwide, a recruitment network, I am often asked this question: So who runs this network? As a network that is member-owned and run, this is a multitiered question at best, and does not apply to every online network that you may find. However, here is the breakdown of what is happening behind the scenes at our specific split-placement network. Read the rest of this entry »


The Elusive Pink Squirrel: The Independent Firm Right for a Recruitment Network

by Sarah Freiburger

pinksquirrelIf the purple squirrel is a metaphor used by recruiters and HR to describe the perfect job candidate, then I would like to present the Pink Squirrel. As the Director of Membership for NPAworldwide, a recruitment network, I search for these each day. The Pink Squirrel is that hard-to-find recruiting agency that loves to build relationships with other recruiters and make split placements, and in the large world of recruitment agencies where business models differ greatly, it is quite difficult to qualify a firm to meet the standards of a split placement network. Here are five key qualifying factors I consider during my hunt for these pink squirrels. Read the rest of this entry »


Recruitment Agencies Collaborate for Success

by Dave Nerz

Does it seem that the “War for Talent” is more often a war between recruitment agencies? Perhaps agency clients feel it advantageous to pit recruitment agency vs. recruitment agency to get better service and lower prices? In a recruitment network, I see the opposite as true…top talent, quickly, effectively and at a fair cost can be delivered by recruiter collaboration. It is time to have recruitment agencies suspend the competitive battle and collaborate for success. Read the rest of this entry »


Differences between NPAworldwide and Fee Trader

by Sarah Freiburger

Question MarkAs the director of membership for NPAworldwide, I occasionally am asked by independent recruiters how our network is different and better than Fee Trader. 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, and how much of a relationship-based recruiter you are. Read the rest of this entry »


Hot Specialty Niches for Recruiters

by Dave Nerz

image of hot markets for global recruitersMore and more, the recruitment industry experts say that you need to specialize on an industry in order to survive in the current recruiting marketplace. I agree that it helps to have a specialty rather than being exclusively a generalist. But for those that are moving from a generalist recruitment business to a specialty niche it might be best to target a hot recruiting niche and keep yourself open to generalist jobs that have made you what you are.

In 2013, our network of more than 400 recruitment firms found “chemical process” and “process engineering” jobs to be one of the hot recruiting niches. Nearly 25% of all the splits done by NPA member firms were done in the “process” specialty niche. The manufacturing specialty niche was a close second in terms of placement results for 2013. So if you are moving from a generalist recruitment business and beginning to specialize, pick one of the best niches for recruitment rather than a specialty niche that might underperform in the year ahead. Generalist recruiters have to have strong skills in order to survive. If you use those skills to focus on a hot recruiting niche, you are likely to excel once you get some industry/niche experience. As a generalist, you can make a decision to focus on particular specialty niches on a regular basis, depending on what might be the hot specialty niches for recruiters in the months and years ahead.

I’m interested to learn of recruiters that have moved from a generalist business and added a specialty niche in the last 12 months. What do you see as hot specialty niches for recruiters in the year ahead?

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6 Questions to Ask a Split Placement Network Before You Join

by Veronica Blatt

questions to ask a split placement networkJoining a split placement network can be a smart way to grow your recruitment business without increasing overhead. If you’re considering joining one, here are six critical questions to ask:

Who owns the network? A split placement network can be privately-owned or publicly-owned, or in NPA’s case, a member-owned cooperative. There is no right/wrong, better/worse ownership model, but you should understand it before you join.

What is the average return on investment for members? Ideally, you want to join a split placement network that offers a high value for your investment. The most common way to measure ROI is to consider the average split fee revenue earned by each member, compared to the costs of membership. You can also measure VALUE, whether in terms of cost (or time) savings through member discount programs, or access to a network of peers who share business acumen.

What does it cost to belong? Some common models include dues-only, brokerage-only, or a combination of dues and brokerage. Informal networks, such as LinkedIn groups, are often free. Some networks also sell software or other business tools. Be sure to find out if you’ll be required to use any particular tool and if so, if there is an additional cost for that tool.

How do I work on positions / share candidates? A split placement network can have almost any arrangement for how its members ‘work the network.’ Some offer exclusivity on a particular role or candidate. Others follow a ‘first in, first out’ rule. Some allow recruiters to ‘bid’ for work and may control the number of roles you can work at any one time, or control the length of time during which a candidate referral will be honored. Recruiters may be required to use the network’s software tool, or they may be able to work directly with other recruiters. Pick a system that feels comfortable for you.

How are disputes handled? Even in the best of circumstances, there are bound to be disagreements or disputes from time to time. You’ll want to spend time exploring how these are handled. Does the split placement network provide formal dispute resolution? Are there time-tested rules and policies? What happens to network members who continually break the rules?

Is there any protection in the event of non-payment by a partner? If you’ve ever been burned on a split placement, this question is probably on the top of your list. What does the split placement network you’re considering do in the event one partner fails to pay another? This is an especially important question if you’re the partner with the candidate, since you’ll have to trust your partner to pay you on time. Will the network help you collect the monies you are owed? Does the network offer indemnification?

If you’re looking for even more research assistance, click the button below to download our free split placement network checklist:

image of button for free checklist to evaluate split placement networks


Get Serious About Making Split Placements

by Sarah Freiburger

getseriousaboutsplitplacementsAs an owner of a recruiting firm, you may have often heard the saying that, “half of something is better than all of nothing.” This statement relates to adding revenue to your firm with incorporating split placements in your business model. Having a whole network of recruiters sharing their talents can only bring about a wealth of strong candidates and dedication that is sometimes missing or hard to find in a small independent recruiting firm. The goal with adding split placement revenue is to increase profit without having to increase overheard; you want the network to work for you. Read the rest of this entry »


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