Recruiting Partnerships

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Forming a partnership with another recruiter in order to make more placements is one of the recruitment strategies commonly employed by third-party or agency recruiters. By working together, recruiters can develop new clients, expand their service offerings, leverage cost-efficiency on job boards and recruiting software technology, and stabilize monthly revenues.

Recruiting partnerships, at first glance, seem unlikely, as all third-party recruiters are essentially working in competition with each other. However, in practice, recruiters can only manage one particular geographic location, or profession and/or industry of specialization. Recruiters partner with other recruiters to take advantage of different candidate databases, industry knowledge, and client relationships.

Recruiters often split placement fees with direct-hire recruiting. With contract and staffing work, the recruiters will typically either work out a fixed cost per hour and hand the consultant off or just keep direct billing and simply negotiate an hourly rate as with a regular client. When developing work with another recruitment agency, it is important to have clearly spelled out ownership of client and candidate.

Partnerships between recruiters have become especially important due to the rise of consolidated client vendor lists, RPO and contingent labor management systems. These systematic approaches to staffing and recruitment procurement tend to consolidate and optimize spend with a few major companies. However, these large staffing and recruiting providers cannot provide all of the needed candidates for a geographically diverse, large employer. Most first-tier staffing and recruiting firms therefore leverage third-party, usually smaller or independent recruiting firms, in order to build up their recruiting and candidate sourcing capacity and meet service delivery metrics.

Certain technology vendors have approached the split network and recruiter-to-recruiter function by introducing formalized Web-based systems. Such companies include BountyJobs, SplitRecruiter, FeeTrader, Top Echelon, and The Hire Syndicate.
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