FAQs About NPA’s Split Fee Network

Is my application for membership in NPA automatically approved?

No, we selectively enroll recruiting firms that add value to our split fee network. NPA members do not need NPA to survive – they need each other to add incremental revenue to their businesses.  Minimum requirements for NPA membership include the following:

  • At least one year in the business of recruiting
  • Direct-hire placements (contingent and/or retained) as main source of firm’s revenue
  • Strategic interest in split-fee placements
  • Involved, independent ownership
  • References of sound business practices and ethics
  • Cooperative recruiting attitude

If your firm meets these criteria, contact our director of membership at +1.616.455.6776 Ext. 15 or contact us online to explore our mutual interests.

Can I be a member of another revenue-sharing, split fee network and also be a member of NPA?

Yes. Prospective members must sign an Addendum to the NPA Membership Agreement for each additional revenue-sharing, split fee network they join.  According to NPA policies, two trading NPA members must pay brokerage to NPA in all instances and under all conditions, even if both firms are also members of another network and that network affiliation generated the placement activity.

What is the cost of joining NPA?

Along with an application for membership, prospective NPA members submit credit card information via an online, encrypted NPA Payment Authorization Form. The form authorizes NPA to charge the credit card for a US$500 enrollment fee for new single-office applications, US$750 for all multiple-office locations, and future dues if the prospective member’s application for membership is approved by the NPA Board of Directors. In addition, member firms pay a brokerage fee to NPA for each successful split-fee placement. Contact our director of membership at +1.616.455.6776 Ext. 15 or contact us online for details.

What kind of annual return on investment (ROI) can I expect from my NPA membership?

On average, NPA has delivered a 750% annual return on investment to individual members.

My recruiting firm operates a main office and two additional locations.  Does my NPA membership include all three locations?

No, membership in NPA is by physical location. First, you must complete application documents for your main office. Then, you complete application documents foreach additional office you operate. Ownership of an additional location must be at least 50% common to that of the main office for that additional location to be approved by NPA. You may complete additional location application documents at the same time you apply for membership of your main office.  Fees are reduced for additional locations.

Joining a network and sharing my job orders/assignments and candidates on a Web-based sharing tool makes me nervous.  Why should I trust the other recruiters in the NPA network?

The long-term success of NPA as a member-owned cooperative is dependent on the ethical behavior of its members. For that reason, NPA has maintained a strong commitment to sound business practices and policies since its inception in 1956. NPA’s code of ethics establishes strict standards by which members conduct business in the split fee network.

In addition, NPA protects members from nonpayment originating within its own network. NPA bylaws state that any member in good standing who is unable to collect fees due them from another NPA member may be indemnified in whole or in part by NPA. A separate account managed by NPA’s board of directors has been established for indemnification if such a need arises.

It is important to note that NPA members do not have to educate their trading partners on how to complete split-fee placements, and they do not have to pursue partners who fail to pay them their rightful commission. If you become an NPA member, you will enjoy the same advantages.

Do you sell an applicant tracking system (ATS) which I am required to use for my recruiting business?

No. NPA members are not required to purchase and use a specific applicant tracking system. Our members vary in number of offices and recruiters, language, specialty, and technology expertise. Some members use IBM PCs while others use Apple MACs.

As an NPA member, how do I share my job orders/assignments and candidates with other NPA members?

NPA members use SplitZone, our Web-based networking tool, to share their job orders/assignments and candidates with other NPA members. (Internet access required.)  There is no additional charge to utilize SplitZone and training on this valuable tool is provided at no cost to members.

If I post my best candidate on SplitZone, your Web-based sharing tool, am I alerted if another NPA member contacts my candidate and sets up an interview with a client company?

Yes, whenever candidate contact information is released to a client company, the NPA member who received the job order/assignment must make immediate full disclosure to the NPA member who posted the candidate. This disclosure must include the name of the client company and location. Failure to make this immediate full disclosure is grounds for expulsion from the NPA split fee network.

Who is responsible for submitting split-fee placement information to NPA?  
Who pays NPA and the NPA trading partner? 

The NPA trading partner who receives the job order/assignment from the client company is responsible for completing the online Acceptance/Placement Report. This report automatically notifies their NPA trading partner and NPA headquarters that the candidate accepted the client’s offer.

After the NPA trading partner who received the job order/assignment from the client company is paid, they keep 47.5% of the client fee and send 47.5% to the NPA trading partner who supplied the candidate. The remaining 5% of the client fee(2.5% from each trading partner) must be sent to NPA headquarters.

Does NPA have a public job board?
Yes. NPA recruiters have the option to post a job order/assignment on NPA’s Job Board in addition to SplitZone, NPA’s private, web-based sharing tool. Posting is free-of-charge. If a candidate responds to the job posting and a placement occurs, the NPA recruiter keeps 90% of the fee and pays the remaining 10% to NPA.

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