What is a split fee?
A split fee (also called a split placement, fee split, or split desk arrangement) is an arrangement where two recruitment agencies collaborate to fill a role. One agency has the candidate, the other has the vacancy, and when the placement is made, they share the fee.
It's one of the oldest forms of recruiter collaboration. Rather than competing for the same placements, agencies pool their resources. The agency with the right candidate connects them with the agency that has the right vacancy, and both earn from the successful placement.
Split fees are common across every recruitment sector, from IT and finance to healthcare and construction. They're particularly valuable for specialist recruiters who have deep talent pools in one area but limited client relationships in another, or vice versa. You may also hear this called fee splitting, shared fee recruitment, or a split commission, which all describe the same collaborative model.
How split placements work
The process varies depending on whether agencies find each other through personal networks, online communities, or a dedicated platform. But the core steps are the same:
One agency has a candidate, the other has a vacancy
Agency A has a strong candidate they can't place internally. Agency B has a vacancy they're struggling to fill. The candidate's skills match the vacancy's requirements.
Agencies agree to collaborate
Both parties agree on terms: the fee split percentage, payment timeline, and any conditions. This is typically formalised in a split fee agreement before any candidate details are shared.
The candidate is introduced
Once terms are agreed, Agency A shares the candidate's details with Agency B, who introduces them to the hiring client. Both agencies coordinate on the interview and offer process.
Placement is made, fee is split
When the candidate starts, the client pays the placement fee to the vacancy-side agency, who then splits it with the candidate-side agency according to the agreed terms.
Typical fee structures
The most common split is 50/50, where both agencies receive half the placement fee. However, the exact split depends on several factors:
| Split | When it's used |
|---|---|
| 50/50 | Standard split. Equal contribution from both sides: one provides the candidate, the other the vacancy. |
| 60/40 | When one agency contributes more, for example when the vacancy side manages the entire interview process and client relationship. |
| 45/45/10 | Used by split fee platforms. Both agencies get 45%, and the platform takes a 10% facilitation fee for matching, trust, and payment processing. |
On a typical permanent placement with a £15,000 fee, a 50/50 split means each agency earns £7,500. That's £7,500 of revenue from a candidate or vacancy that would otherwise have generated nothing.
Why agencies split fees
Split fee recruitment isn't about giving away half your fee. It's about monetising placements you couldn't make alone.
Monetise dormant candidates
Every recruiter has strong candidates they can't place. Split fees turn these dormant candidates into revenue. 50% of a fee is better than 0%.
Fill hard-to-fill vacancies
When you can't find the right candidate internally, another agency's talent pool might have exactly who you need. Splitting the fee is far cheaper than losing the client.
Expand without hiring
Split fees let you serve clients in sectors or regions you don't cover, without the cost of hiring new consultants or opening new offices.
Strengthen client relationships
Filling a role quickly through collaboration impresses clients. It shows resourcefulness and keeps the client from going to a competitor.
Common challenges
Split fee recruitment has been around for decades, but it's historically been held back by a few persistent problems:
Trust and data protection
Sharing candidate details with another agency requires trust. There's always a risk the other party could bypass you and approach the candidate or client directly. GDPR adds another layer: you need a lawful basis to share personal data with a third party.
Finding the right partners
Traditionally, split fees rely on personal networks. If you don't know recruiters in the right sectors or regions, you're limited to social media posts and hoping someone sees them. Inefficient and hit-or-miss.
Payment disputes
Without a clear agreement, disputes over fee splits, payment timing, and rebate terms are common. Verbal agreements are particularly risky, especially when thousands of pounds are at stake.
Administrative overhead
Coordinating across two agencies means double the communication, separate CRM systems, and manual invoicing. The admin burden often deters smaller agencies from even trying.
How to find split fee partners
There are several ways recruiters find split fee partners today:
Personal networks
The traditional approach. You know recruiters in complementary sectors and reach out directly. Reliable but limited to who you already know.
Social media groups
Groups like "Split Fee Recruiters UK" let you post available candidates or vacancies. But there's no matching, no vetting, and no payment protection.
Recruitment networking events
Industry events and meetups are good for building relationships. But they're infrequent and geographically limited.
Split fee platforms
Purpose-built platforms that automate matching, protect candidate data until both parties agree, and handle invoicing. The newest approach, designed to solve the trust, discovery, and admin problems simultaneously.
Split fee agreements
A split fee agreement (sometimes called a split placement agreement) is the contract between two agencies that governs how a split placement works. It should be signed before any candidate details are shared. A good agreement covers:
- ✓ Fee split percentage: how the placement fee is divided (e.g. 50/50)
- ✓ Payment terms: when each party gets paid and what triggers payment
- ✓ Rebate and refund policy: what happens if the candidate leaves within a guarantee period
- ✓ Candidate ownership: clarifies which agency "owns" the candidate relationship
- ✓ Confidentiality and non-circumvention: prevents either party from going around the other to deal directly
- ✓ Data protection: how candidate personal data is handled, stored, and shared in compliance with GDPR
Without a written agreement, disputes are almost inevitable. Even between agencies that trust each other, having clear terms prevents misunderstandings when money is on the line.
Split fee platforms
Split fee platforms are a modern solution to the traditional challenges of recruiter collaboration. Instead of relying on personal networks and manual processes, a platform automates the entire workflow:
- • Automated matching. Algorithms match candidates to vacancies across agencies by skills, location, salary, and seniority
- • Data protection by design. Candidate and vacancy details are anonymised until both agencies agree to collaborate, ensuring GDPR compliance
- • Built-in agreements. Terms are standardised and accepted on the platform, eliminating the need for separate contracts
- • Automated invoicing and payment. The platform handles fee calculation, invoicing, and payment distribution so agencies don't chase each other for money
See how Split Fee works for agencies.
Split Fee is launching mid-2026
A purpose-built platform for UK recruitment agencies to collaborate on split placements. Smart matching, anonymised data sharing, and automated invoicing, all in one place.
Join the waitlistFrequently asked questions
What percentage is a typical split fee? +
The most common split is 50/50. Each agency receives half the placement fee. Some arrangements use 60/40 when one agency does significantly more work. Platforms typically take a small facilitation fee (e.g. 10%), making the effective split 45/45/10.
Is split fee recruitment legal? +
Yes, split fee recruitment is entirely legal. It's simply a commercial arrangement between two businesses to share a placement fee. However, agencies must comply with GDPR when sharing candidate data, and a written agreement is strongly recommended to protect both parties.
How do split fees work with GDPR? +
Under GDPR, sharing candidate personal data with another agency requires a lawful basis, typically legitimate interest or consent. Agencies should have clear data processing agreements in place. Split fee platforms solve this by anonymising candidate details until both parties agree to collaborate, minimising the data protection risk.
Can I split fees for temporary or contract placements? +
Split fees are most common for permanent placements, where there's a clear one-off fee to divide. For temporary or contract roles, the arrangement is more complex because revenue is ongoing. Split Fee is designed specifically for permanent placements.
What happens if the candidate doesn't work out? +
This should be covered in the split fee agreement. Typically, if the candidate leaves within a guarantee period (e.g. 12 weeks), the rebate or refund is shared proportionally between both agencies. On a platform, rebate tiers are defined upfront so both parties know exactly what to expect.
What is fee splitting in recruitment? +
In recruitment, fee splitting (also called a split fee or split placement) is when two agencies collaborate to fill a vacancy and share the placement fee. One agency supplies the candidate, the other supplies the job, and both earn from the successful hire. Unlike fee splitting in medicine or law, which is generally prohibited, split fees in recruitment are a standard and legitimate business practice used by agencies worldwide.
What is the difference between a split fee and a split placement? +
There is no difference. They are two terms for the same thing. "Split fee" is the standard term in the UK, while "split placement" is more common in the US. Both describe an arrangement where two recruitment agencies collaborate on a hire and divide the placement fee between them.
How do I find other agencies to split fees with? +
Traditionally, recruiters find split fee partners through personal contacts, LinkedIn groups, or membership-based networks. Split fee platforms like Split Fee automate this by matching your candidates and vacancies with complementary agencies based on skills, location, and salary, so opportunities are surfaced to you rather than requiring manual searching.