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The Value of a Network: 10 Reasons to Make Split Placements in a Tough Economy

Top Echelon Split Networks

You don’t need us to tell you that being a recruiter isn’t quite as easy as it was two years ago, at the height of the Great Resignation. The fact that nobody is even throwing the phrase “Great Resignation” around anymore should be an indication of how the market has turned during the past 24 months.

However, one powerful strategy to consider in times such as these is embracing the split placement opportunities that exist in a recruiting network. That’s because this collaborative approach allows recruiters to tap into each other's resources, increase placement opportunities, and ultimately boost their bottom line.

Top Echelon has been in business since 1988, and we’ve offered a recruiting network to agency recruiters and search consultants every year since. So we know what we’re talking about, at the very least. With that in mind, below are 10 reasons to consider making split placements in a tough economy:

1. Expand Your Reach and Network

In a soft economy, the job market often contracts, and finding qualified candidates for open positions becomes more challenging. In such circumstances, a recruiter’s personal network might not always be sufficient to find the right fit for a client’s role. This is where split placements can be a game-changer.

By partnering with other recruiters, you can expand your reach beyond your immediate network. You gain access to a wider pool of candidates that your partners have cultivated, increasing the likelihood of finding a perfect match for a role. Similarly, when you share your job orders with other recruiters, you increase the exposure of the job to candidates you might not have had access to otherwise. This collaborative approach not only helps fill positions faster, but it also broadens your network of professional contacts, enhancing your credibility and positioning in the market.

2. Reduce Time-to-Fill and Increase Efficiency

Time is a crucial factor in the recruiting industry, especially during economic downturns when every moment counts. Clients are more cautious and expect faster turnarounds, making the need for efficiency more critical than ever.

Split placements allow you to leverage the expertise and resources of other recruiters, reducing the time it takes to fill a position. For example, if you have an open job order but lack suitable candidates, working with a partner who already has qualified candidates in their database can significantly speed up the process. This cooperation can help you meet your client’s expectations and reduce the risk of losing the placement to a competitor.

In addition, by sharing the workload, both recruiters can focus on their strengths—whether that’s sourcing, screening, or closing—leading to a more efficient recruitment process. This can be particularly valuable in a tough economy, where maximizing productivity and minimizing costs are particularly important.

3. Mitigate Risk in Uncertain Times

A tough economy brings increased uncertainty, and with that comes risk. The hiring process can become more volatile, with clients pausing or canceling searches unexpectedly. In such an environment, the risks of working on a contingent basis increase significantly.

Split placements provide a way to share that risk. Instead of investing all your resources into a single client or job order, you can diversify your efforts by collaborating on multiple placements with different partners. This diversification means that even if one opportunity falls through, you still have a chance to make placements elsewhere, thereby reducing your overall risk exposure. It’s a way to spread your bets, so to speak, and ensure that you're not left high and dry if one client decides to halt their hiring process.

4. Enhance Revenue Streams

One of the most compelling reasons to engage in split placements during tough economic times is the potential to enhance your revenue streams. In a down market, every dollar counts, and the goal is to maximize income from every available source.

While split placements mean sharing the commission, they also provide a steady flow of smaller but more frequent payouts. This steady income can help smooth out cash flow, which is particularly important when the economy is unpredictable. In addition, by partnering with other recruiters, you increase the total number of placements you can make, even if each individual placement yields a smaller commission. This can result in a higher overall revenue than trying to make full-fee placements on your own, especially in a market where securing placements is more difficult.

5. Build Stronger Client Relationships

Clients hire recruiters because they need help filling difficult roles, especially in a tough economy where hiring freezes, budget cuts, and shifting business priorities can make the process more challenging. By utilizing split placements, you can better meet your clients' needs and build stronger relationships with them.

When you partner with another recruiter, you can gain access to a broader range of candidates, increasing your ability to fill a role quickly and effectively. This increased capability can set you apart from competitors who might not be willing to collaborate. By demonstrating your commitment to finding the best candidates, even if it means sharing the work, you position yourself as a valuable partner to your clients, building trust and potentially securing more exclusive or repeat business in the future.

6. Cultivate a Collaborative and Learning Environment

The recruiting world is highly competitive, but that doesn’t mean it has to be cutthroat. In fact, during tough economic times, collaboration can often yield better results than competition. By engaging in split placements, recruiters can learn from each other, share best practices, and develop new strategies that can help both parties succeed.

For instance, you might partner with somebody who has specialized expertise in a particular industry or job function where you have less experience. This partnership allows you to learn more about that market and enhance your skill set. In turn, you may offer insights into a different aspect of recruiting that your partner finds valuable. This exchange of knowledge can be a “win-win,” helping both recruiters become more versatile and capable.

7. Adapt to Market Changes More Quickly

The job market can change rapidly, especially during economic downturns. What’s in demand one month may be completely different the next. Split placements allow you to adapt to these changes more quickly by providing flexibility and scalability to your recruitment efforts.

When you engage in splits, you can quickly pivot to different industries, job functions, or geographic areas based upon market demand. This adaptability is critical in a tough economy, where the ability to respond swiftly to new opportunities can make the difference between thriving and merely surviving.

8. Strengthen Your Brand in the Recruitment Community

By regularly engaging in split placements, you build a reputation as a collaborative and reliable partner in the recruitment community. This reputation can have long-term benefits, positioning you as somebody who is easy to work with and committed to delivering value.

When other recruiters know they can trust you to share job orders and candidates, you become their go-to partner, creating a network of mutually beneficial relationships. This reputation can help you win more split placement opportunities, further increasing your chances of success.

9. Leverage Technology to Facilitate Split Placements

Today’s technology makes split placements easier and more efficient than ever. Platforms like Top Echelon’s provide the tools and resources necessary to find and connect with other recruiters, share job orders, and manage split placements seamlessly.

Using these tools, you can quickly identify potential partners, track your split placements, and ensure smooth communication and cooperation throughout the process. By leveraging technology, you can eliminate much of the friction that once made split placements more challenging, allowing you to focus on what matters most: making successful placements and growing your business.

10. Making New Friends (No, Really)

We are not exaggerating when we say that members of Top Echelon Network have not only formed productive and profitable trading partner relationships over the years, but they’ve also made friends. Not just casual acquaintances, either, but life-long friends. That’s difficult enough to do, but to accomplish it at the same time that you’re able to make more money as a recruiter? That is the epitome of a win-win situation!

In a tough economy, agency recruiters and search consultants must be creative and resourceful to maintain and grow their businesses. Split placements offer a powerful strategy to expand your reach, reduce risk, enhance revenue, and build stronger client relationships. Now is the time to embrace the power of partnerships, connect with fellow recruiters, and make split placements a core part of your business strategy. Not only can it help you weather the current economic storm, but it can also position you for greater success when the market rebounds.

 

So here’s to a great rest of 2024 . . . and a better year in 2025!


(Top Echelon’s recruiting network—now called TE Network—contains over 500 recruiting agencies operating in almost every industry and niche, all working together to share job orders and candidates to make more placements. You can request a live demo of TE Network, apply for membership, or both. In addition, Top Echelon offers a free recruiter training video: “Strategies for Securing Job Orders in a Softening Market” by Tom Erb. Click here to watch this video for FREE!)

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Top Echelon

Top Echelon offers recruiting software for internal recruiters and Human Resources professionals to help them hire and build better teams, as well as for agency recruiters and executive search consultants to help them make more placements.

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