Posted By: John Frey on February 28, 2022
Hello, my name is John Frey. I am one of the founders of The National Coalition of Healthcare Recruiters, also known as NCHCR.
We are an Association of Healthcare recruiters exclusive to independent healthcare recruiters and small healthcare recruiter agencies.
Networking among members is one of the foundational pillars of our association. I hope this brief video provides you with essential and highly valuable insights that will encourage you to start networking.
Thank you in advance for taking the time to read this article!
Networking
The purpose of this article is to highlight the importance of conducting Split Placements, or what some have called Co-Operative Placements.
Healthcare Recruiter Agencies and Independent Recruiters historically have not put a high priority on these type placements for the simple reason that there had been ample opportunities and candidates available at the time.
That is no longer the case! Allow me to say that again! “That is no longer the case!”
I am working with dozens of recruiters who previously did not do Split Placements. They simply did not need to do them. Yet today it is a significant piece of their activities and revenue.
So why didn’t they want to do splits?
The answer is the inherent risks of doing splits
Split Placements carry risks with them, and these risks have deterred recruiters from participating in splits.
A solid and robust Split Agreement backed by a highly experienced Association reduce these risks significantly. The Key is that the Association aggressively enforces the Agreement.
Let’s discuss those risks.
The top three risks are:
- Stealing the client from the other recruiter
- The recruiter makes the placement and does not pay the other recruiter
- The recruiter places the candidate in a different opportunity and does not pay the split fee.
Let’s Address each Risk
- Stealing the client from the other recruiter
Yes, regretfully this has happened in the past. When a dishonest recruiter finds out about an opportunity from another recruiter, they will call around and attempt to find the opportunity. This scenario is definitely the case in small rural areas.
There are ways to protect yourself. We suggest you start by advising your client at the outset of the search that you will be marketing for candidates for the opportunity. You ask the client that when other recruiters suddenly start calling them, they point the recruiter to you as the contact person for that particular opportunity.
Another way that attempts have been made to “steal the client” during the Split Process is by talking to their candidate after a phone interview to find out who the client is. They then call the client directly to sign a contract for future opportunities.
SOLUTION: The NCHCR Split Agreement clearly states that members CANNOT DO THIS. AND, if a complaint is filed, we require that the recruiter accused of this prove they had a previous existing working relationship with the client. If they can’t, we remove them from NCHCR and announce to the entire membership that we have done so. This is an excellent proactive deterrent to stop this from happening. No recruiter wants hundreds of other recruiters knowing they attempted to steal a client. This alone stops them in their tracks.
- The recruiter makes the placement and does not pay the other recruiter
The usual questions are: “Why would I give a candidate to someone I don’t even know? How do I know they will pay me? “Both these questions make all the sense in the world.
This is the most common problem. Beware of the recruiter who refuses to work within a network. We all know, if you are a member of a recruiter network and you attempt to steal the fee, it is the kiss of death. You will never repair your reputation.
If the Network is an Association, that Network is legally obligated to require the fee be paid and to assist the recruiter who has not been paid. And, if this occurs with an NCHCR member, their membership is immediately terminated, and the members are advised. In simplest terms, the consequences are so severe that dishonest recruiters will not attempt to steal the fee. Once again, the last thing a recruiter wants is for hundreds of other recruiters to be made aware of the fact that they have stolen a placement fee.
In the last 15 years, NCHCR has only had to do this two times.
- Recruiter places the candidate in a different opportunity and does not pay the split fee.
The last big risk is when a recruiter places the candidate in a different opportunity and does not pay the split fee. The recruiter submits the candidate for the opportunity, but a placement is not made. They then turn around and place the candidate with another client, but do not pay you. In simplest terms, they just stole half the fee from you.
The remedy is simple. It is called Procuring Cause which requires the recruiter to pay the recruiter with the candidate the split fee regardless of where the other recruiter places them. You do need a solid Split Agreement to enforce this. In our Split Agreement, the candidate is owned by the recruiter representing them for one full year in any Split Placement activity.
So, with those 3 big risks, why bother to do Splits?
The Covid Virus has significantly reduced H.C. Recruiting activity. There are far fewer opportunities to be filled and fewer available candidates, especially ones who are willing to relocate to other geographical areas.
By opening your opportunities and candidates up to a split network you tremendously increase your ability to fill openings.
Historically many recruiters focus on sourcing opportunities OR candidates but are not comfortable doing both. It is very similar to the Real-Estate market where they represent the buyer OR the seller, but not both. As a result, both types of recruiters need a safe environment where they can conduct splits, sharing their opportunities or candidates.
NCHCR provides that safe split environment once you log into the sites. Members can communicate with each other 7 days a week, 24 hours a day. By posting their opportunities or candidates on the site, all the other members are able to easily find them using our excellent “matching” functionality. The system literally matches the criteria of the opportunity with all the candidates who match that same criterion. It works the same way when a candidate is posted, and the “match” button is clicked.
Here is the Fee Structure of the NCHCR Split Agreement
The members of the National Coalition of Healthcare Recruiters agree to the following standards of professional practice:
- All cooperative placements will be shared based on a 50% - 50% split or a 20% - 80% split based on how the Candidate is provided. Terms such as a guarantee or refund policy and any alternative fee amount will be based on the placing agency’s established fee schedule. Special or amended fee agreements will be discussed and agreed upon by all agencies in writing (this includes retainer-based searches) in advance of working together.
The recruiter firm providing the Candidate will be compensated based on a “Referral” or “Profiled” role in the presentation of the Candidate.
If a placement occurs, the recruiter who provided the Candidate will receive a Profiled Candidate Fee of 50% of the placement fee.
We would love an opportunity to speak with you about your split efforts and how NCHCR can be a major factor in your recruiting efforts and success!
