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 trading 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. 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, and when you provide them with those right candidates, they will reward you with not just more job orders, but their most important, executive-level, high-quality job orders.
#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, 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.
#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.
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 firm benefit from making split placements?
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