Split fee's

Hi all,

I have not posted on here before. In the process of moving from the UK to Florida permanently.

I have run my own recruitment business in the UK since 1994, employed lots of people - some successful and most not so. I am done with hiring and firing and am super happy being back on the case personally serving my clients in the Technology and Telecoms industry. In fact, to be honest I am having an absolute ball, earning great money and super happy.

My problem is that I am finding myself with too many roles to fill, I dont advertise at all and for the positions I fill - (mostly Sales and Management based) head hunting is the only way for me, but this is of course very time consuming and it is hard to work more then 4/5 roles on a committed and successful shortlist basis.

Never done fee splits before, but wondered if others had and what their experiences are? I want to find other Recruiters or Researchers who can source candidates for me - I have a number of clients who I know I can get fee's out of. Am I chasing the holy grail here? 50% of something has got to be better then 100% of nothing right?

The thought of employing people again to try and take the horse to water, only to discover that the damn beast does not want to drink, sends shivers down my spine. But maybe that is the only way?

Best

Mike

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Replies to This Discussion

Permalink Reply by Terra on November 17, 2011 at 11:39am

I do splits all the time and it is always 50/50. unfortunately I really only do the tristate area and mainly Manhattan. But there must be agencies in Florida willing to split. Since you own your own agency, why not just hire a assistant to help you recruit, that is what I do.

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Permalink Reply by Marcia Bateman on November 17, 2011 at 12:02pm

I work for a company called NPA, The Worldwide Recruiting Network

The basis for the network is to facilitate split-fee placements amongst members. NPA exists to help your company recruit the best talent in the market.

Globally, we have over 1300 recruiter/members. Some of those work locally, some nationally or even internationally, throughout a range of industries.

If you would like to learn more about our network please visit:

http://www.npaworldwide.com/RECRUITERS/aboutnpa.html

We have a blog you can follow also: NPA Works!

I’m happy to give you more information if needed.
Kind regards,

Marcia Bateman

mbateman@npaworldwide.com

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Permalink Reply by Amber on November 17, 2011 at 12:27pm

Hi Mike,

We work with other independent recruiters on a split basis when we have an overflow of orders, or need help with certain industries, etc. We tried other avenues over the years, and that has worked best for us. And we have had employees, but that never seemed to work out how we had hoped.

Find people you feel comfortable with, have open and frank conversations about each sides role and expectations. That should all be covered in a signed, written agreement but remember that will only be as worthy as the parties characters!

And you shouldn't need to have another outside party (that costs you extra!) help you make an arrangement with another recruiter, especially since you already have plenty of business experience!

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Permalink Reply by Mike Auton on November 18, 2011 at 9:49am

Thanks for your reply, I appreciate it. Can I ask what your Assistant helps you with? Specific areas? I have had this same thought, but then wondered just how effect would that someone be?

Terra said:

I do splits all the time and it is always 50/50. unfortunately I really only do the tristate area and mainly Manhattan. But there must be agencies in Florida willing to split. Since you own your own agency, why not just hire a assistant to help you recruit, that is what I do.

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Permalink Reply by Mike Auton on November 18, 2011 at 9:51am

Amber,

Thanks so much for your reply. Your experience is very interesting to me, I need to hook up with some people I can trust and are effective - the question is how?!

I dont want to pay for the privledge of hooking up with other Recruiters - thats what social media is for right!
Amber said:

Hi Mike,

We work with other independent recruiters on a split basis when we have an overflow of orders, or need help with certain industries, etc. We tried other avenues over the years, and that has worked best for us. And we have had employees, but that never seemed to work out how we had hoped.

Find people you feel comfortable with, have open and frank conversations about each sides role and expectations. That should all be covered in a signed, written agreement but remember that will only be as worthy as the parties characters!

And you shouldn't need to have another outside party (that costs you extra!) help you make an arrangement with another recruiter, especially since you already have plenty of business experience!

▶ Reply

Permalink Reply by Terra on November 18, 2011 at 10:39am

We have a database of over 20,000 candidates so I teach them how to filter what I need and ask that they email and call. Also inputting any new resumes I find. Plus if they are good having them do searches on line and send you the resumes they think are appropriate and that limits what you have to sift through. Last, just calling and emailing the people I find is helpful.

Mike Auton said:

Thanks for your reply, I appreciate it. Can I ask what your Assistant helps you with? Specific areas? I have had this same thought, but then wondered just how effect would that someone be?

Terra said:

I do splits all the time and it is always 50/50. unfortunately I really only do the tristate area and mainly Manhattan. But there must be agencies in Florida willing to split. Since you own your own agency, why not just hire a assistant to help you recruit, that is what I do.

▶ Reply

Permalink Reply by Amber on November 18, 2011 at 11:26am

Finding the right people takes a little time, but overall I have had good experiences with other recruiters. There have been a few times that I didn't pursue working with someone for various reasons - one wanted me to join the "network" he belonged to, one had a 5 page split agreement that seemed way too convoluted, one did not want to share any details about the jobs - salary, location, etc. So it is a lot of relying on your instincts, and evaluating whether you think there would be a mutual benefit. I don't have a lot of "local" clients or job orders and have not really worked with any local recruiters so I have had to interact mostly via phone, but it seems that you get a sense pretty quickly if there's something "off". Most splits we do are 50/50, we avoid any type of 3 way splits, etc. We have all our own resources, but if you decide to work with someone who is going to use your resources then you may want to look at a little different split percentage. Ex., your job order + your database + your job board (or whatever resources you use) = 60/40. And that might also be adjusted based on who does what during the process.

And I totally understand your feeling about the employee thing, we are thinking and considering whether to add someone in an administrative type role but are hesitant for several reasons.

Mike Auton said:

Amber,

Thanks so much for your reply. Your experience is very interesting to me, I need to hook up with some people I can trust and are effective - the question is how?!

I dont want to pay for the privledge of hooking up with other Recruiters - thats what social media is for right!
Amber said:

Hi Mike,

We work with other independent recruiters on a split basis when we have an overflow of orders, or need help with certain industries, etc. We tried other avenues over the years, and that has worked best for us. And we have had employees, but that never seemed to work out how we had hoped.

Find people you feel comfortable with, have open and frank conversations about each sides role and expectations. That should all be covered in a signed, written agreement but remember that will only be as worthy as the parties characters!

And you shouldn't need to have another outside party (that costs you extra!) help you make an arrangement with another recruiter, especially since you already have plenty of business experience!