How to Get More Work from Clients

by Liz Carey

What do you do if your client comes to you with a job order that you don’t have the bandwidth to help fill? How can you keep your client happy without adding to your costs by hiring another recruiter or opening a branch in another location?

Many recruiters turn to a split placement network, which gives you access to trading partners all over the globe, to help gain more clients, get more work from current clients, and start to broaden their reach nationally and even internationally. While some recruiters may balk at having to split a fee, recruiters who do splits understand that half a fee is better than no fee at all.

Here are a few recent examples of how NPAworldwide members were able to help fulfill their clients’ needs by utilizing network resources – and pocketing part of a split fee they otherwise would not have been able to obtain: 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.

1.   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.

Fee Trader promotes itself as a recruiting tool and platform for outsourced/agency-side recruiters and employers to partner with each other through job bidding.

2. 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.

In Fee Trader, a network of staffing agency 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.

3. Cost of the Network

Fee Trader has a $150 start-up fee and then monthly costs ranging from free to USD $199 per user, per month based on plan details. To utilize all of the employer features and also to be able to bid on numerous jobs per month you will need to upgrade to the higher monthly plans. Fee Trader pays the placing recruiter a ‘commission rate,’ which is a percentage of the fee that the client pays to Fee Trader. NPAworldwide has a one-time enrollment fee of USD $500 plus dues of USD $190 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.

4. 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.

Fee Trader does not have networking meetings or conferences, but prides itself on the transactional business opportunities recruiters have to access employer jobs directly, as well as bid on other recruiter jobs for split fees. By using this model, you are able to bid at whatever amount you feel comfortable to secure a job.

In conclusion, which option is better for independent recruiters to join – NPAworldwide or Fee Trader? It depends! 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. If you prefer to work on a transactional basis, then you should consider Fee Trader, and have more direct access to employer postings and be able to secure these positions with your own bids. Or, if you are undecided, you may want to consider joining both and experiencing them each firsthand.

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

As an independent recruiter, which option do you prefer?

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.

A Split Fee Network Organizes the Playing Field

by Dave Nerz

I’ve been reading some interesting blogs lately on how recruiting compares to sports. Barb Bruno had an interesting one just a few days ago comparing recruiting to golf. Check it out on Recruiting Trends.

It got me thinking about where a split fee network might fit into the comparison of recruiting and sport. My conclusion is that networks function much like sporting leagues. They group like-minded recruiters together and organize the playing field for participants with various levels of tools and rules.

Some recruiting networks are loose and informal. These are for the casual recruiter allowing them to dip in and out of contact with the group as needed. Not much commitment, minimal expectations from others in the group and perhaps a limited return on your time invested. This is the equivalent of the pick-up game of basketball, a quick 9 holes of golf with some folks that you met on the first tee, or a set of tennis on the public playground.

Other split fee networks are more structured. What is nice about these more formalized networks is that they have been created by like-minded recruiters that are serious about getting deals done. They have expectations of themselves and of you. Frequently these networks provide both tools and rules. These recruiters are not dabbling in the business, they are committed. This is like the competitive tennis league that charges a registration fee, plays on the best courts, and awards players for performance. It can still be fun, but is fun with a goal established up front…results will be rewarded and recognized. This is a league for more than just participation. This is a league where you expect to play with others at your level on an organized field of play.

If you are serious about sports, you know that practice is what improves your skills and the more you apply those skills on a controlled and organized playing field, the better you will become at applying the skill. So if you are serious about recruiting, and consider splits a part of your overall strategy, consider committing to an organized split fee network. It might be fun and financially rewarding!