5 Ways Split Placements Can Benefit Your Recruiting Firm

by Veronica Blatt

NPA has been in the business of fostering split placement opportunities since 1956. Obviously we are big believers in splits, since that’s the very reason for our existence. If you haven’t considered integrating split placements into your business model, here are some reasons you should:

  1. Split placements can help level out cash flow fluctuations. Splits are good for business in all kinds of economic conditions because they provide incremental revenue that stabilizes seasonal or cyclical revenue fluctuations.
  2. Split placements can allow to you work on more projects simultaneously. A split fee recruiter can complete more projects. More completed placements means more satisfied clients and more profitability.
  3. Split placements help you serve your clients faster and more efficiently. The most successful recruiters I know are those whose sole desire is to get the best candidate in front of their client faster than anyone else. By building a reputation as the “most reliable provider” they are guaranteeing future business.
  4. Split placements can help you expand your scope of service in terms of both geography and occupational or industrial markets. Participating in split placements means you can help your clients with a wider variety of assignments, whether that means branching out geographically or different types of roles.
  5. Split placements offer an affordable alternative to hiring additional recruiters in your recruiting firm. Instead of hiring a new recruiter or investing resources in developing a new niche, you can reach out to trading partners who are already established experts. Best of all, there is no ongoing overhead – you simply pay for their services when you need them.

If you’re interested in adding split placements to your business model (or increasing the number of splits you currently make), there are two primary ways of doing so. One way is to relentlessly build your own network of like-minded recruiters that you can trust and who work the same way as you. You’ll need to spend time creating a split fee agreement, upfront, each time, to ensure your client and candidate relationships are protected. The other way is to join an established recruitment network. Split placement networks bring you a ready-made cadre of trading partners, infrastructure and ground rules governing how splits will be made, and dispute resolution if needed.

NPA offers a free tool to help you determine if joining a split fee network could benefit your recruiting firm. The NPA self-evaluation tool is anonymous. NPA does not capture any of the data you submit so you won’t get any phone calls or emails as a result of filling out the questionnaire.

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