Split placements are deals done between two firms engaged in a recruiting partnership
. Split placements typically occur when one recruiter obtains a client with an open job order and the other recruiter fills the role by finding a suitable candidate.
The primary advantage of doing recruiter splits is to increase recruitment billings and/or expand into a hiring area outside of your primary area of expertise. Recruiting split partnerships are often difficult to navigate and set up, as effective recruiting requires intimate knowledge of both clients and candidates. Therefore, contracts for a recruiter split must allow for transparency in the relationships between recruiter-client and recruiter-candidate. With this transparency comes complication and ownership issues. It is because of these complications that recruiters usually develop split placement relationships only after developing a high degree of trust in each other's business practices.
That being said, split placements are an effective way to increase business, and perhaps more importantly, stabilize and normalize recruitment related revenues. Splits allow recruiters to work flexibly among a broad group of professions and industries, according to the best job market conditions and hiring demands, instead of being beholden to a particular "competency" of one's own recruiting agency.
Formalized and technology-enabled recruiter split networks have emerged to address some of the concerns about split placement relationships and govern the contractual obligations of both parties according to the split fee agreement.