Welcome to The Fordyce Letter:

The Fordyce Letter

Straight Talk for the Recruiting Profession

Articles tagged 'askjeff'

Fees, Jeff's On Call!

Whose Fee? Phantom Recruiters and Contract Terminations


Dear Jeff,

I have been in the industry for over 15 years recruiting across Europe and the Middle East, permanent search and selection for senior management up to board level positions across a variety of industries.

My team and I always look out for your column with intense interest. Even after 15 years in the industry I constantly learn new insights to improve our business and overcome the more unusual challenges. Thank you for that, because we could never get the information anywhere else at any price.

We have a long-standing client that asked us to start a contingent search a few months ago. We sourced a candidate, set up interviews, and finally an offer has been accepted. However they now realize the CV was

Jeff's On Call!

Instant Falloff? Worry About Protection, Not Collection


Hi Jeff,

I am a big fan of yours, and have followed the Jeff’s On Call! column for years.

We just just heard something very disturbing, and need your help.

Our client is in in Pennsylvania, and we made two placements with them in the past. We were paid with no problems.

Our most recent hire is a controller who lives here in Florida and was expecting a moving company to arrive tomorrow for relocation to her new position. She just received an email from our client telling her that they lost a big contract, and decided not to have her start with them. She is furious, as you might expect.

Jeff's On Call!

Promissory Estoppel: The Way You Get Paid When the Client Changes Things


Hi Jeff,

I have learned a great deal from your “Jeff’s On Call!” column and also from your National Placement Law Center Fee Collection Guide. The column is certainly a place where rookies and seasoned veterans alike can get useful tips for the search industry.

I am a veteran recruiter with over 20 years experience. I have done both retained and contingency search.

We have finished an extensive (3+ month) contingency search on an exclusive basis. During the search, the client sent names for us to screen and recruit. Of course one of these candidates landed the position after we screened, recruited, referred, and set up the initial interview. The client has offered to pay only a partial fee since they sent us the name of the candidate.

Unfortunately, I believe this will end up being hashed out in court. Will it matter what the reason is for the sending of the names to our firm? What legal theories does this case center on?

Jeff's On Call!

What Happens to My Fee When My Client Buys the Candidate’s Employer?


Hi Jeff,

You have helped me collect fees twice in the past, and the Jeff’s On Call! column has greatly contributed to our success. This is just indispensable.

I have a question that really needs answering, and would appreciate your help.

A client of mine who has hired about 6 to 8 sales reps from me in the last few years gave me a search for a sales person when I ran into him at a trade show in Las Vegas. I placed the sales manager who gave me the search.

I scheduled 8 interviews and he liked one candidate best. They are scheduled to meet for a second interview with the VP of sales again soon. The candidate currently works for a competitor and the word on the street is my client may be purchasing them as soon about the same time as the interview. It has been a rumor for months.

The sales manager told me he did not know if they would pay my fee if they buy the company because the sales rep would be an employee of their company. I told him I didn’t know the legal ramifications, but as far as I am concerned I set up the interviews and will be due a fee.

Fees, Jeff's On Call!

Send Only ‘Blind’ Resumes Or You May See Your Fee Runaway


Mr. Allen,

Hello, it is good to be ‘speaking’ with you. I was told of your website when I first began in the executive search business many years ago, and I have benefited from visiting your site again, recently, by being able to read the scenarios that occur in our business.

In particular I appreciate your Q & A about referring resumes and doing so in a manner that protects us from losing a fee in the referral process. A recent experience has taught me I need to more closely follow your suggestions about masking a candidate’s identity, and so I shall.

I’ve been in recruiting for a few different industries since 1980: healthcare, insurance, manufacturing. and have done not only contingency but also retained searches.

Recently, after being away from the search business for a few years I’ve discovered something new to me. On many occasions I will contact an executive in a company, make a candidate presentation, and that executive will agree to receive and review the candidate’s resume. I also have on many occasions arranged for that executive’s ‘gatekeeper’ to receive a candidate’s resume (with the understanding I am in the search business and that a fee would apply upon hire of the referred candidate), and subsequently print it and put on that executive’s desk for review. (This has worked and gotten me a hire although I’m thinking you probably don’t approve.)

Jeff's On Call!, Staffing

Can I Protect Myself From Being Temp-Napped?


Hi Jeff,

Thanks for providing such a great site.

I have a question regarding the validity of buyout clauses in temporary employment contracts. I own a small contingency staffing business in CA. I’m wondering whether a staffing firm can legally defend a buyout clause in their W2 offer letters or 1099 independent contractor contracts to prevent a candidate simply approaching a different supplier for the same client and engaging with them for their services in the same role?

We’ve had issues where the candidates once placed, negotiated a better deal with a competing agency, and simply switched to their employ instead. This is done with the blessing of clients who don’t seem to care that we were the ones who recruited the consultant in the first place. In general, client contracts are biased to favor the client, in that there is no restriction about receiving the same candidate from a different vendor.

If so, is there a specific form the buyout clause needs to take, i.e. specific wording that it should include, preclude?

Jeff's On Call!

Avoid the EEOC ‘Letter Bomb’ With Advocacy and Facts


Hello Jeff,

I benefit from your regular column in The Fordyce Letter, and thought I’d run this question by you to obtain your thoughts.

I am working on a search for a high-growth technology company here in the Bay Area that is requiring a very specific skillset in the area of electrical engineering standards/compliance for the U.S. and overseas markets. I had a candidate apply who brings over 40 years of experience, and upon initial conversations seems to have the subject matter expertise necessary for the job.

My question is this: How do I present this candidate to my client in a manner that does not discriminate on their age, but my professional opinion tells me that they may not be the ‘long term’ candidate my client is ideally looking for?

Fees, Jeff's On Call!

If You Want Your Fee There Is “Substantial Cause” Never to Say “But For”


Hi Jeff,

Jeff I really enjoy your column and I am learning a great deal about the in?s and out?s of the recruiting world. You are an invaluable asset for me!

Here is my situation: a recruiter sent a candidate’s resume to my client back in December. My client did not move on her (this was 2 1/2-3 months ago). She subsequently took another job. I called her not knowing that she had already been presented to my client . She is willing to talk about leaving the job she has only been at for a couple of months, and my client is now interested in talking to her. She did not interview with my client back when the other recruiter presented her, and she would not be talking with my client but for my efforts in tracking her down and convincing her to leave her current job.

Q: Does the fact that she took this other job in the interim negate the first recruiter’s claim?

Q: Is the fact that I dug her out of the existing company and represented her and set up the first interview make me the recruiter who deserves the fee? Before you answer, know that I am sure the other recruiter surely has a one year claim on her in his contract.

Industry News, Jeff's On Call!

In Memoriam: My Friend Alan Schonberg


Editor’s note: Alan Schonberg, founder of MRI and a pioneer in search, died Friday. His obituary is here.

You’d pick up the phone and it would be Alan.

Just calling to see how you were doing. Always with some compliment. Some encouragement. Some wisdom. Always about you.

His favorite thing was introducing a trainer – or in my case – the “placement lawyer” to MRI.

He became so successful by helping others succeed. One at a time. Then tens of millions, really. Including you. The MRI/SC/OM5 managers, franchisees and their recruiters. The associates of the managers, franchisees and their recruiters. The business model and techniques of successful practitioners everywhere. The candidates they place around the world. The employers they staff globally. Alan’s many philanthropic causes.

Fees, Jeff's On Call!

Include Commissions in Your Fee Schedule When Placing Sales Pros

Jeff Allen COllection Tip

Editor’s note: Jeff Allen has heard every employer excuse that you can imagine for not paying up — and dozens more that defy imagination. Over the last 18 months, he’s documented one a week. Because of the importance of collections, Fordyce will periodically reprise the most common situations he addressed. The complete collection is here.

What Client Says:

“We hired the candidate at a lower starting salary.”

How Client Pays: