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Straight Talk for the Recruiting Profession


Articles tagged 'askjeff'

Jeff's On Call!, Legal

Why Having the Candidate Pay the Fee Can Become A Federal Case



ask-jeff3

Hello Jeff,

Every Monday morning, the first thing I do is look for your column. You’ve been my legal guide for so long, and I really appreciate the help.

Is there anything I should know about taking money from a candidate?

A hiring manager wants to make an offer to my candidate, but the COO doesn’t want to pay the placement fee. The position has been open for 9 months, and my candidate is the right person for the job.

At the behest of the director of HR, I sent this candidate to use as an inducement for the COO to hire him. I have a signed agreement with the client to pay the placement fee if it hires anyone I refer.

It’s the candidate’s dream job at a dream compensation. Now HE wants to pay the fee.

On one hand it doesn’t feel right, on the other hand I have the power to make the candidate whole.

This seems so simple, but I just wanted to run it by you.

What do you think?

Thanks in advance, and thanks for helping me get this far!

Dean Mannello
The Sherwood Group

It’s Not That Simple

Hi Dean,

JOC inquiries like yours help all recruiters to know the law. That’s our

Fees, Jeff's On Call!

“Fee’s Too High” Is No Defense When You Have a Contract



Jeff Allen COllection Tip

Editor’s note: Jeff Allen has heard every employer excuse you can imagine for not paying up — and dozens more that defy imagination. A few years ago he began documenting them in a weekly collections column. Because of the importance of collections, Fordyce will periodically reprise the most common situations he addressed. The complete collection is here.

What Client Says:

The fee’s too high.

How Client Pays:

Recruiters laugh or get angry at the “fee’s too high” position. But courts will arbitrarily reduce placement fees in the name of equity (fairness) unless there is a written, signed, or otherwise fully accepted contract introduced into evidence.

Jeff's On Call!

What’s Wrong With Explaining the Fee? Everything!



ask-jeff2

Hi Jeff,

I must be your biggest fan (but must also share that status), and have read The Fordyce Letter for many years. You have great advice that has guided me through my career in recruiting. After 23 years doing it, I’d love you to answer a question.

A candidate I referred started today. We scheduled a phone interview for him with the client several weeks ago, but the client rep was a no-show.

After a week of trying to get that interview rescheduled along with trying to schedule another candidate, I received an email back from the client’s admin indicating that unfortunately, they had prior contact with both candidates.

Fees, Jeff's On Call!

Whose Fee? Phantom Recruiters and Contract Terminations



ask-jeff4

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



ask-jeff4

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



ask-jeff4

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?



JeffOnCall_logo

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



ask-jeff4

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?



ask-jeff4

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



ask-jeff4

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?