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The Fordyce Letter

Straight Talk for the Recruiting Profession


Fees, Jeff's On Call!

The ‘Preferred List’ Excuse


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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:

You’re not on our preferred list.

How Client Pays:

The “preferred list” is called that because the client prefers that you think there’s a list.

It’s usually comprised of any recruiter willing to sign the client’s PSA (placement service agreement). Otherwise it’s simply any one willing to accept a (low) fee ceiling, extended guarantee, or whatever else the “client” imposes.

If you doubt this, call the client anonymously, and see if you get a JO. Half the time, you will. The other half, one of your friends will. He can even follow up by sending a fee schedule and confirming letter to the client.

This completely destroys the “preferred list” nonsense. I’m not aware of a single employer who’s ever risked being confronted with this in court.

So they pay long before it ever reaches that stage!

More than thirty-five years ago, Jeffrey G. Allen, J.D., C.P.C. turned a decade of recruiting and human resources management into the legal specialty of placement law. Since 1975, Jeff has collected more placement fees, litigated more trade secrets cases, and assisted more placement practitioners than anyone else. From individuals to multinational corporations in every phase of staffing, his name is synonymous with competent legal representation. Jeff holds four certifications in placement and is the author of 24 popular books in the career field, including bestsellers How to Turn an Interview into a Job, The Complete Q&A Job Interview Book and the revolutionary Instant Interviews. As the world’s leading placement lawyer, Jeff’s experience includes: Thirty-five years of law practice specializing in representation of staffing businesses and practitioners; Author of “The Allen Law”--the only placement information trade secrets law in the United States; Expert witness on employment and placement matters; Recruiter and staffing service office manager; Human resources manager for major employers; Certified Personnel Consultant, Certified Placement Counselor, Certified Employment Specialist and Certified Search Specialist designations; Cofounder of the national Certified Search Specialist program; Special Advisor to the American Employment Association; General Counsel to the California Association of Personnel Consultants (honorary lifetime membership conferred); Founder and Director of the National Placement Law Center; Recipient of the Staffing Industry Lifetime Achievement Award; Advisor to national, regional and state trade associations on legal, ethics and legislative matters; Author of The Placement Strategy Handbook, Placement Management, The National Placement Law Center Fee Collection Guide and The Best of Jeff Allen, published by Search Research Institute exclusively for the staffing industry; and Producer of the EMPLAW Audio Series on employment law matters. Email him at jeff@placementlaw.com.