If you’ve been a recruiter for any length of time, you know the mental, emotional, and even physical euphoria associated with receiving a $25,000 placement check in the mail.
There’s just something about landing that full fee. It’s intoxicating. It’s alluring. It makes you want to land it again . . . and again . . . and again.
That’s why some recruiters bristle at the notion of a split placement. After all, that’s NOT a full fee. That’s half a fee. However, if you completely disregard the possibility of making splits, then you could be cheating yourself and helping to ensure that you don’t reach the full potential of your recruiting desk.
Below are five main benefits of making split placements:
#1—Additional opportunities for revenue
Yes, everybody likes to earn a full fee on a placement, but what if your choices were a split placement fee or no fee at all? Which would you choose? Half a fee, of course! You know the old adage: “Half a loaf is better than none.” While that was originally meant to describe a loaf of bread, it also describes a placement fee. Having an extra $10,000 or $15,000 is certainly better than not having it. After all, the goal is to bill as much as you possibly can.
#2—A more balanced recruiting desk
Some recruiters have more job orders than they know what to do with. Some recruiters would give their left pinky finger for just one job order. Both recruiters—and every recruiter in between—can benefit from the value that split placements offer. Too many job orders? Ask your split recruiting partners to source candidates to fill them. Not enough job orders? Work the orders of your trading partners and help them fill their positions. Everybody wins, my friends.
#3—Happier hiring managers
Your clients don’t really care where the candidates come from. This is especially the case now, in this current candidates’ market. They don’t care if you get them from another recruiter, travel through time and bring them back from the future, or use a mind-control device to kidnap them from their homes. They just want the right candidates.
Day after day and week after week, recruiters in a split network make placements solely because one of their trading partners presented them with a great candidate. Their client couldn’t find the right candidate. They also could not find the right candidate. However, one of their trading partners had the right right candidate. The result? Placement! When you present your clients with the right candidates—regardless of where they came from—they will reward you with more job orders. Not only that, but they will also reward you with their company’s most important, high-level openings.
So hiring managers will be happier . . . and so will you.
#4—Leverage against (inevitable) down times
You know what happens when a recession hits. Schlooooop! What was that? The sound of job orders disappearing, that’s what. When job orders are scarce, making split placements can help a recruiting firm supplement its income and keep its doors open. If you’ve been in this business for any length of time, you know that the good times do NOT roll on forever. During a recession, “half a loaf” is definitely better than none.
And anybody who’s been following the news can tell you that some financial prognosticators are predicting a recession in the United States sometime between the end of this year and 2021. This is already the second-longest bull market in this nation’s history. The conclusion: the end draweth nigh. Are you and your agency prepared?
#5—Reduction of overhead
If other recruiters are filling your job orders and placing your candidates, then you’re less likely to hire additional staff. That’s because your trading partners are acting as your staff, helping you to close deals. In fact, some recruiters know and trust one another so much that they fill in for each other during vacations, following up with clients and candidates. Why hire more people when you can enjoy a working relationship like that? Not only are you making sure that things are taken care of, but you’re also maximizing both your resources and your profit.
There are other benefits of making split placements, as well. However, these are the primary ones from a strictly business standpoint. So let’s address these other benefits. Below are three bonus benefits of making split placements:
#6—An excellent recruiting experience
What’s better than making a placement? (Well, the correct answer to that question is making two placements. But that should be understood.) No, for the purposes of this blog post, what’s better than making a placement is making one that involves a great experience. If you’ve been a recruiter for any considerable length of time, chances are good that you’ve made placements that have been a miserable experience. And of course, you’ve worked searches that were miserable and you didn’t even get a placement fee.
However, when you work with a trusted trading partner in a recruiting network and the two of you collaborate and strive toward a common goal, the result can be exemplary on a number of levels. Starting with the fact that the both of you get paid!
Yes, recruiting is a difficult profession. It’s definitely NOT for the faint or weak of heart. However, despite everything that can and probably will go wrong, recruiting can be and often is a very rewarding profession. When things work well and happen the way they should happen, the rewards are apparent.
When you make a split placement with another recruiter and the process is a great experience, then you feel professional satisfaction. It serves to remind you why you became a recruiter in the first place. And every recruiter needs a reminder like that from time to time.
During Top Echelon Network’s over 30 years of existence, hundreds of recruiters have formed thousands of friendships. Not only have they build professional relationships, but they’ve also formed personal friendships. They’ve done so to the point that their families have spent time with one another.
When you work with other recruiters in a split fee recruiting network, you gravitate toward those who work the way that you do. That’s just natural. What’s also natural is that the more you work with other recruiters, the more likely you are to form friendships. In a way, it’s almost inevitable.
Did you fill every single one of your job orders last year? Did you place every single one of your candidates? How could your recruiting agency benefit from making split placements this year and every year after?