New recruiters come into a recruitment network to expand their reach, build their revenues, and to better serve clients and candidates. If you’ve never been in a split network, what’s the learning curve? How does it work? How long will it take to get that first split placement fee in your pocket? Where do you start? Here is a story about how a couple of experienced NPAworldwide members reached out to a brand new member and helped close a deal:

Don Previti, managing partner of DVP Partners, LLC, and Jim Lyons of LH International, who both work the financial services domain in New York City, were advised of a new member, Elisa Sheftic of Right Executive Search, who had just joined and had a very similar focus on the financial service and hedge fund space, and both took the time to call Elisa and introduce themselves. “It was immediately apparent we had many mutual shared connections and direct business compatibilities,” Don said. Don and Jim invited Elisa to lunch in Manhattan, where they both work, so they could meet face-to-face and discuss their success on NPA and how they can help her optimize the power of the NPA network, Don said. “I believe this was a pivotal point in defining our relationship and success going forward,” Don said. “Following our in person lunch with Elisa, we summarized some immediate action points and agreed to send each other some open requirements.”

One such role was a Senior Compliance Officer in the hedge fund sector based in San Francisco that Don had been working on for four months and was unable to fill.

Within a week, Elisa sent Don a great candidate, which his client wanted to interview right away. The phone interview went well, and the candidate was invited for an in-person interview the next week with the hiring manager and two partners. They made an offer, and the candidate started last month at a $150,000 salary. Don’s placement fee was 20%, so he earned a $30,000 commission, half of which goes to his new partner, Elisa. “So within 3 weeks of Elisa joining NPA, we had our first deal closed,” Don said. “I will be sending Elisa a check for $15,000 and we now have two additional requirements that are in varying stages of success.”

Elisa said that one of the things that make her partnerships successful is that Don and Jim are very quick to get her feedback. Openness and transparency shows a level of trust that can reassure a new member that recruiting is not always a dog eat dog world.  

“That’s a tribute to their professionalism and the strength of their relationships and it makes my team and I want to work on their assignments,” Elisa said. “Anyone in this business for any length of time knows that is not always the case with partners or clients and it is appreciated and it’s the stuff long lasting relationships are made of.”

This deal not only shows the power of the network, but the power of folks like Don and Jim, who took the time to reach out to a new person and introduce themselves.

“I believe this short story demonstrates the power of a split placement network when people reach out and leverage the national and international resources provided,” Don said. “I also hope this provides all new members a sense of encouragement that their first placement will happen and it’s in their hands to reach out to like minded partners to facilitate the process.”

I saw a post on a social media site yesterday about split placements. One recruiter emphatically stated he does not believe in split placements. Fair enough, splits aren’t for everyone. But I always feel it’s shortsighted to summarily dismiss splits. Here are 3 reasons I think every recruiter should consider split placements:

Split placements can even out business cycles

All business have ups and downs, including recruitment. There are times when you have more jobs than you can reasonably expect to fill, and there are times when you think you might never get another one. If you’re working the candidate side, you know there are times when candidates are a dime a dozen and other times, like now, where it’s darn-near impossible to find the right talent. Adding splits to your business model can help you even out the highs and lows. When you don’t have enough candidates or jobs, lean on your trading partners to fill the gaps. When you have too many, your trading partners can help you fill those orders more efficiently.

Split placements offer economical business expansion

At some point, most recruitment firm owners have been faced with the decision of expanding their business to meet demand. Many owners will opt to hire staff, and there is nothing wrong with that. However, splits can help you grow your firm WITHOUT adding extra overhead: no recruiters to pay, no desk costs, no training, no tools. You’ll bring additional revenue into your recruitment firm by working with other successful recruiters and sharing the fees. Split placements can help you quickly expand into new niches or geographies without the onboarding time (and money!) it takes to research and develop a new desk.

Split placements can help you serve your clients more effectively

No one likes to say no to a good client. Whether your best client comes to you with an opening that needs to be filled urgently, or an opening for a role you don’t normally work, or an opening outside of your typical geography, splits can help you say yes with confidence. You may also find that you can fill open roles faster, or work on more placements simultaneously. One of the best ways to keep your clients is to provide top talent faster than your competitors. Splits can help you meet that goal.

While split placements can include an element of risk, they are also an effective tool for many successful recruiters. Keep an open mind and give it a chance!