5 Reasons to embrace the split fee revolution

By Intalex

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In our volatile climate there is no better time to think outside the box to make money quickly.

Recruiters traditionally shy away from collaborating with their peers.

Domestic and International recruitment sectors are highly fragmented and are served by a large number of small and medium sized agencies. In addition, changing demographics and profound market shifts are transforming the global demand for the supply of human capital. This global imblance will worsen and become more of a challenge for the recruitment industry.


Over the last twenty years the Internet has revolutionised the way in which both consumers and companies conduct their businesses. The Internet is pervasive across all countries and manages both social and commercial interactions. Research has confirmed that a number of countries including the US, China, Japan and Korea have B2B e-commerce close to or above $1 trillion per year.

A split fee network enables a recruiter in any part of the world, for example a Chicago based recruiter can secure a job for his talented candidate anywhere in the world. Without the split fee model the Chicago recruiter might never find a job for his candidate. This premise shrinks the globe, country and individual city markets and enables the smallest agency to compete with the largest agency, for mutual benefit and transaction success.

“This is about the movement of talent to where it is needed in order to benefit economies, which is a win-win situation for all stakeholders. Mobility policies that are sensitive to the social implications of moving people for work are an effective approach, as they spark innovation and collaboration, while many high-skilled migrants eventually return to their homelands, taking fresh perspectives and valuable new skills with them, and fostering brain circulation.” Jeff Joerres, former CEO, Manpower


With the demand for specialist talent and the supply of such in decline here is  Intalex’s top 5 reasons to embrace the split fee revolution.



1. ROI on Recruiter Activity:

Jobs do not remain unfilled and candidates do not remain idle on in-house recruitment databases. For example, lets say one of your recruiter’s wins business with a large multi national group.You  are  a Financial Specialist but  this client also needs a  Swiss German Legal Advisor urgently.The split fee premise will allow you to earn a percentage of the placement fee on the legal advisor,even though this is not sector you service. The same is true for any walk in’s you may get, candidate experience is essential and we need to service all inquiries to maintain a professional reputation. Time is spent registering applicants that are not within your recruiters specialties’ .These may be placed without additional business development.In addition high calibre candidates, whom are unsuccessful at interview can be placed placed via your split fee network. 


2. Commission:

50% of a placement fee is better than 0% of a placement fee. There are endless revenue opportunities when a recruiter is open to collaboration. Imagine missing out on a €3500 fee (50% of a €7000 placement). This could be down to not having a role for a fantastic candidate you registered or you don’t have a candidate for a new urgent role you have won. The fee split premise eliminates either of these concerns. Collaboration is the new black!


3. Market Share:

 A split fee network will Increase market penetration, as you are able to service all sectors and localities. For example, if you are a retail  specialist a split fee network will allow you to canvass and fill roles  in any sector irrespective of expertise.


4. Borderless Business:

You can make placements regardless of location. As research suggests the Canadian construction market is booming.With the large pool of qualified local tradesmen and  the abundance of infrastructure globally adopting the split fee mantra will not limit your ability to place such workers. A split can be agreed with a Canadian certified recruiter and your applicants may be placed in their roles or vice versa. The same can be noticed within the UK retail sector or the IT Sector globally.


5. Commercially viable solution:

Fee splits allow your recruitment teams to work efficiently and in turn increase profits. There is no  need to hire additional staff which will affect your bottom line. As discussed, with the availability of registered talent and jobs your current headcount can achieve commercial wins of a much larger in-house team.



Split Fee recruitment is an effortless model which will maximise profits. With the launch of state of the art platforms this revolutionary recruitment tactic will manage the demand and supply mismatch and fill dificult roles, often the most lucrative!

Getting jobs on is still a challenge for recruiters and its more important than ever to offer potential clients more bang for their buck. By embracing the split fee revolution you will be able to cater for all their requirements irrespective of location or job type. 

About the Author: Charlotte Lawson Marketing Manager http://www.intalex.com/, the world’s largest private recruiter to recruiter split fee network.

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