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The Fordyce Letter

Straight Talk for the Recruiting Profession


Fees, Jeff's On Call!

If Your PSA Has a 30, You Might Find the Client Plays Dirty


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Jeff Allen COllection Tip

Editor’s Note: Every Monday Jeff Allen offers you a tip about what you should do to ensure you never miss out — or get beat out — of your well-earned fee.

What Client Says:

We’ll pay you that percentage of the candidate’s first monthly paycheck.

How Client Pays:

Check your fee schedule or the client’s PSA (placement service agreement). Watch for references to:

  • A 30-day guarantee. Even a clearly-stated replacement guarantee can backfire if the fee is not unequivocally based on projected, first-year compensation.
  • Rebilling after a month. Anticipating an additional fee based on actual compensation after the candidate is employed for 30 days is inviting a 30-day period for computation.
  • Jobs where fees are customarily charged on a monthly basis. Office support, industrial, and other support occupations shouldn’t be identified on the fee schedule.
  • A temporary fee tied to the first 30 days. That will likely be all you’ll receive.
  • Invoices being payable within 30 days. Payment terms don’t belong on a fee schedule. They belong on an invoice after a placement is made. Even “Net 30 Days” discount terms or monthly service charges should be carefully separated from the fee schedule terms.

When there’s an ambiguity in a document, it’s construed (interpreted) against the party who created it. As if that weren’t enough, you have the burden of proof by a preponderance of the evidence.

Annualized fees will be due if you just remove anything 30-days or monthly from your documents!

John has been writing about recruiting and employment for nearly a decade,and has worked in the field for almost twice as long. He traces his connection to the employment industry back to the beginning of the commercial Internet when he managed some of the earliest news oriented websites. These offered job boards, which became highly popular with users. John worked with agencies and large employers on job postings, resume search, and campaigns, before consulting with media companies on audience development and online advertising sales.