7 Guaranteed Ways to Kill Split Placements

by Veronica Blatt

image of rubber stamp failNPA is a member-owned recruiting network that helps foster split placements. We’ve been doing this since 1956, so we have learned a lot about how to make splits. Today I’m devoting this space to the opposite side of the coin – with a tongue-in-cheek look at some actions you can take if you’re NOT serious about making splits. And if you *really* want to kill a deal, feel free to combine 3 or 4 of these all at once:

Hoard your best positions. One sure way to fail at split placements is by only sharing crappy jobs. When you get a great job – great fee, great salary, great company, great hiring process, great relationship with the hiring manager – keep that one all to yourself. Only let your partners ‘help’ you on the jobs that are the complete opposite.

Hoard your best candidates. When you get a rainmaker that’s a perfect fit for your partner’s job, hold out for an opportunity to place them on your own for a full fee. That way, you can up the odds that everyone walks away unhappy. Got a marginal candidate that you wouldn’t send to your own best client? Feel free to send that one along to your trading partner. Conversely, when you get a great candidate from your partner, be sure to present your OWN not-as-great candidate instead so that you can keep the whole fee.

Send speculative candidates that have not been qualified for a current opening. Nothing says, “I love split placements” like expecting your partner to do something with a candidate they didn’t ask for and doesn’t match any of their current positions.

Be paranoid. When you’re working on split placements, make sure you speak in code and withhold a lot of details, like the candidate’s name or the client’s name or the job location. Your partners *love* that.

Don’t return calls/reply to email. Providing timely, accurate feedback to your partner (whether on the candidate side or the job side) is really important when making split placements. If you want to kill your deal, it’s a good idea to avoid your trading partner.

Don’t make any proactive calls for help. When you have a job to fill, send out one email blast to everyone you know. Then sit back and lament the poor response. After all,  email *always* gets delivered, and *everyone* loves being on an email distribution list.

Don’t have a 50/50 mindset. This can be achieved by expecting your partner to accept a smaller cut of the fee (20-25%) OR by expecting to receive half of the fee for doing way less than half the work. Most recruiters I know would be *thrilled* to have an arrangement that unfairly rewards one partner over another.

Recruiters who are successful at split placements know that “50% of something is better than 100% of nothing.” They openly share their best candidates and jobs, and treat their partners “fair and square.” My snarky comments are exaggerated, but these behaviors will — and DO — impede splits. What’s your ‘favorite’ deal-killer?

Split Fee Placement Agreement


NPAworldwide Split Placements: What is HOT!

by Terri Piersma

TrustNPAworldwide member-firms are part of a global network of recruiters working together to make split fee placements. 2013 is almost half over. In which niches/industries are our member recruiters making split fee placements? In other words, from an NPAworldwide perspective, what is hot!

The information shared in this post represents split placements through May 2013.

  • Placements of positions with US$90,000 and above salaries were 54% of total split placements
  • Placements of positions with US$100,000 and above salaries were 35% of total split placements

Top 4 Trading Groups based on the number of split placements, listed high to low. Click here to view industries/niches included in NPAworldwide’s Trading Groups.

  • Chemical Process
  • Cross Industry
  • Manufacturing / Mining / Construction / Supply
  • IT / Hardware / Software / Electronics

Trading Group with the largest percentage increase over 2012 based on number of split placements

  • Chemical Process

Overall split placements are down slightly compared with the number of split placements during the same timeframe in 2012. However, the number of positions with US$90,000 and above salaries increased compared to 2012 split placements.

What niches/industries have you found to be HOT in 2013? Please comment below, and share this blog with others.


When is a split not a split?

by Dave Nerz

sandwich-cut-in-halfI’ve been spurred to action by what some are calling “split networks” for recruiters. These new providers are positioning themselves to be split networks like NPA, The Worldwide Recruiting Network, but they are really something else. These providers serve a purpose, but they are brokers not split networks. Breathe Dave, breathe…fill the lungs, rest, exhale and repeat…

There is a new breed of provider to the recruitment industry and they are hijacking a long-established recruiter language to repackage what they do and to make a killing doing it. They call themselves split networks.

In the recruiting industry, a split has always been a deal that was shared by two recruiters. Even within the walls of a recruitment firm, a deal that gets worked on by two recruiters is a split. There are other industries that work on a similar model, for example realtors who share the commission/fee that results from the sale of a home. There is a split that is shared between the selling agent and the buyer’s agent. In a split fee environment, the fee is shared and so is the work.

This new breed is acting as a clearing house for job openings, much like the multi-listing service in property sales. But rather than taking a small percentage off the top, some are taking as much as 50% of the fee collected without doing half of the work. Can you imagine if LinkedIn said, “We will allow you access to candidates but if you do a deal, we are going to take 50% of the fee.” The recruiting community would go ballistic!!!  Then why is it that recruiters seem to be OK with giving 50% of the fee earned to these clearing house sites for employers? Recruiters end up doing nearly all the work but get half the fee. “ALL the work and HALF the fee,” that would be quite a marketing tag line, right?

There are some very good split networks. I think NPA is one, but I am not an unbiased source of information. TE, IPA, First Interview and NBN, just to mention a few, are great organizations built to help recruiters do splits. There are some commendable online groups, many of which are doing the hard work of connecting recruiters to do splits. Some of these organizations take a small percentage off the top; others are even free or just charge dues. Until recently, no one promoting splits has been taking 50% for themselves unless they were doing at least 50% of the work. So be careful, a split is not always a split…sometimes it is a huge commission for a broker of jobs.

In a community that worries about “LinkedIn’s intentions” and “will job boards compete with recruiters,” there are other threats in the mix. Be careful out there! Look for services that are providing HALF the fee for HALF the work.

Now tell me about where I went wrong…feedback, comments and shares are always welcome.


Nimble Markets & Old Habits for Recruitment Agencies

by Veronica Blatt

image of cheetah runningToday’s guest blogger is Geoff Crews with Forsythes Recruitment in Newcastle, New South Wales, Australia. Forsythes Recruitment specializes in engineering and technical recruitment; corporate recruitment, including executive, sales, HR, and finance; office support recruitment including admin, accounts, and clerical; trade and industrial recruitment; and organizational consulting including psychometric assessment, outplacement, and OD. Geoff serves on NPA’s Board of Directors where he is a member of the Tools, Knowledge, and Services Committee.

We have decided to unplug the TV at our house recently. A kind of family experiment. We were spending longer in front of it for an ever-decreasing return in entertainment. It was losing its value.

It has opened up a new world of communication with our young kids. Creativity. Paper planes. Uno. Board games. Taking turns. Dice. Encouragement. Strategy. Winning. Losing.

The TV experiment means I miss a lot of advertising. And so this business – www.nimble.com.au – was new to me when I stumbled across it recently.

Nimble is an online business providing simple, short-term loans of less than $600. The online form takes 5 minutes and the money is deposited into your account within the hour.

Nimble launched in 2005 and recently rebranded, incorporating an impressive website. Their journey has been challenging but inspiring.

When did the market emerge for such small loans?

And while we’re retrospecting (spell check likes it, so remain calm), I note 140 characters suddenly became enough to communicate something meaningful.

And putting your resume online, in full view of your employer, even though you actually quite liked your job, became acceptable.

What is Nimble providing that credit cards can’t? Twitter providing that emails can’t? LinkedIn that recruitment agencies and job boards can’t?

Speed?

Simplicity?

Accessibility?

Transparency?

Specialisation?

Authenticity?

Whatever your answer, can you use those same words to describe your industry?

This economy, as frustrating as it is, is an oddly exciting time for recruitment agencies. Fertile ground for experimenting with established markets. Being creative. Putting value under the microscope.

A good time to consider unplugging old habits.


Confessions of the Independent Recruiting Industry

by Veronica Blatt

I came across this infographic today created by BeHiring and was kind of shocked by some of the information it contained. After reading through it, it seems to be pretty accurate, but also pretty negative. Independent recruiting is a fast paced, busy environment and most times, recruiters don’t have time to waste on job seekers to that are submitting sub-par resumes and cover letters.

infographic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A couple things I found interesting:

17% chance your cover letter will be read – should job seekers even be submitting cover letters if the chance is so high independent recruiters aren’t even going to read them?

427,000 resumes are posted on Monster every week – that’s A LOT of resumes. It’s probably a more productive effort for job seekers to use smaller and narrower niche jobs boards. Is that true, independent recruiters? Do you have luck finding candidates on Monster?

As an independent recruiter do you find these statistics to be generally true? If so, use this infographic to educate job seekers about the life cycle of their resume.


The Best LinkedIn for Recruiters

by Dave Nerz

image of magnifying glassMaybe you are like me and think the best version of LinkedIn for recruiters is the LinkedIn Recruiter Professional Services (RPS) product that lists at about $5000 per seat. If you are like me, you are wrong. There is a product that has been around for a few years but was not marketed to the average independent recruiter until just recently. The product is called “LinkedIn Recruiter” or “LinkedIn Recruiter Corporate Edition” and list for upwards of $8,000 annually. How is it that so many do not know about this product? Well, I have a theory, but I’ll keep that to myself. My Mother always said, “If you can’t say something nice…” Read the rest of this entry »


Is LinkedIn Killing Agency Recruiters?

by Veronica Blatt

image of LinkedIn, a tool used by agency recruiters“LinkedIn is killing agency recruiters.”

“LinkedIn is NOT a recruiter’s friend.”

“How much damage has LinkedIn caused your recruiting business?”

These are all phrases I’ve recently heard from agency recruiters. There seems to be a growing concern that LinkedIn is intent on eliminating the need for third-party recruiters and that it’s only a matter of time before it happens. Read the rest of this entry »


Recruiting Ideas: What to do with “Leftover” Candidates

by Veronica Blatt

image of word bonusThe chemical process industry (oil/gas/refinery, chemicals, pharmaceuticals, foods, pulp & paper) is hot, hot, hot in NPA. Split placements in this area are up 50% over the same period last year. And still, our chemical process recruiters are leaving business on the table because they can’t find enough qualified candidates. Whether you recruit in the chemical process industry or some other sector, you probably have “leftover” candidates – the ones your client did NOT hire. What recruiting ideas do you employ after the job is filled?

The easy answer is to leave them in your database until a future opportunity arises. Another option is to pitch one of these great candidates to a prospective client as a way to solicit new business. In today’s market, great candidates have a very short shelf-life. Both of these options decrease the likelihood that you’ll be able to quickly turn these assets into revenue for your recruiting business.

Another recruiting idea to consider: use those leftover candidates on a split placement basis with other recruiters. Contact other recruiters you know who work in the same specialty to see if THEY have a current need for your hot process engineer. If you’re not part of a formal recruiting network, make sure you have a signed split fee agreement in place with your recruiting partner (click here for a free template). If you don’t already have some split placement partners, you can certainly look for a group on LinkedIn; lately, I have been seeing lots of posts from independent recruiters looking for split opportunities. Or, you can seek out a formal (or quasi-formal) split placement network. There are relationship-based networks like NPA as well as transactional networks; pick one that matches your business style.

Reports we are reading and seeing indicate that hiring demand is strong in many sectors, although actual hiring may be slower than expected due in part to the extreme shortage of top-level talent. As an independent recruiter, you likely have plenty of great recruiting ideas to ensure satisfied clients and robust business. Split placements should be considered a strategic part of your business mix.

image of button to join the npa split placement network


Recruiting Strategy: How to Avoid Credit Collection Mistakes

by Veronica Blatt

image of folders for past due recruiting feesToday’s guest post is courtesy of Wilson Cole from Adams, Evens & Ross, a collection agency specializing exclusively in the recruitment and staffing industry. Back in 2003 Wilson Cole, the President and Founder of Adams, Evens & Ross, was asked to produce a video series detailing the most common credit and collection mistakes that staffing and recruiting firms make when working with their clients. The finished product was a series of short, to-the-point videos called The Seven Deadly Mistakes That Staffing and Recruiting Firms Make And What You Can Do To Avoid Them. In 45 minutes you will learn what are the most common pitfalls that clients make and you will also learn a system that will help reduce your risk and make sure that you get paid in a timely manner. DISCLOSURE: Adams, Evens & Ross is an NPA Alliance Partner. NPA members receive discounted services from AER.

Have you ever had to collect a recruiting fee owed to you by a client? Ever experienced ‘temp-napping’ or a ‘back-door’ hire? Part of your recruiting strategy needs to include protecting yourself from clients who don’t pay the fees you are owed. In this video, part one of a seven-part series, Wilson discusses how including a personal guarantee in your fee agreement can help you avoid the need to resort to collections. Personal guarantees are most effective when your client is a small company that is less than three years old. If you like this video, you’ll find links to the remaining six videos on the Adams, Evens, & Ross YouTube channel.

Well-written fee agreements are an important part of any recruiting strategy. Make sure your agreements ensure you get paid for the work you do!

Please share this blog post with other recruiters you know!


Global Recruiting Agencies in a Mobile Recruiting World

by Dave Nerz

As if the pace of change and demands of a talent short market are not enough, global recruiting agencies must now add integration of mobile recruiting to their project list. My advice is that we all get busy doing this because as the infographic from Hirerabbit shows below, mobile recruiting is a growing trend and it will impact access to candidates. I hope the data you find in this infographic gets you thinking about the importance of a mobile strategy for your independent recruiting agency.  Let me know what you think by posting a comment or sharing this with your fellow recruiters.

Mobile Recruiting Infographic


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