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The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'collections'

Fees, Jeff's On Call!

The “Other Division” Fee-Avoiding Forward Pass



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. 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 candidate was hired by another division.

How Client Pays:

This is a “forward pass” situation — sendout to A, hire by B.

Fees, Jeff's On Call!

Forget That Fee If You Sent Contact Info



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. 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:

There was prior contact with the candidate.

How Client Pays:

“Exclusive” contingency-fee job orders don’t exist. But even assuming you think you’ve got one, it doesn’t exclude direct contact with the candidate. So you’re truly trusting when you:

Fees, Jeff's On Call!

“He said,” “She said” Don’t Count In Fee Fights



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:

You said you wouldn’t bill us if we hired the candidate.

How Client Pays:

The usual ruses are that you said this was a favor to the candidate; it was a level you didn’t work, or a discipline outside your field.

Fees, Jeff's On Call!

Haunt Your Candidate When the Employer Claims Employee Referral



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. 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 hire was through an employee referral.

How Client Pays:

Employee referrals are among the easiest and most common fee-avoidance moves. Here’s how they do it:

Jeff's On Call!

Making You The Star Witness In Fee Collection Cases



Placements and the law logo

Ever since we developed the Fee Collection Star Witness Questionnaire, we’ve helped tons of recruiters collect their well-earned fees.

There’s a remarkable similarity in the cases. While various legal theories may be used, the judge or jury is the “trier of facts.”

Facts. That’s where the game is won or lost. The bottom line is you must show you earned the fee. This is quite different from merely showing you made the placement, since there is a perception in the mind of the general public (including judges and juries) that a few phone calls and a little luck make them happen. These folks are invariably salaried, so they relate to effort rather than results.

Fees

Don’t Let Them Use a Different Job Title to Avoid the Fee



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. 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:

We hired the candidate in a lower classification.

How Client Pays:

Uncategorized

But For Using “But For,” You Would Have Collected Your Fee. So Don’t!



Placements and the law logo

The single biggest contingency fee collection defense is the so-called “but for” rule. Yet recruiters and their lawyers constantly use it as a legal rationale to get paid. When you start a fee collection with, “But for my referral . . .” it will likely end with, “. . . farewell five figure fee.”

Today, I’m going to explain why you should remove the words “but for” from any collection attempt.

Fees, Jeff's On Call!

Do You Know Where Your Sendouts Are Working Today?



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:

Another recruiter was responsible for the placement.

Fees, Jeff's On Call!

Think You’ve Got A Case? Here’s How We Decide



Placements and the law logo

Proving you earned your fee is far different from earning it. Since we accept collections on a contingency fee basis, we become your partner in the investment. For this reason, we have developed guidelines to decide whether to invest our time and money. Using them has enabled us to attain a 93% collection rate. Here they are:

1. Is The Recruiter Being Realistic?

It’s natural for unpaid recruiters to be angry. Some say they’d rather see us get the money than let the employer get away with not paying. Others insist they want far more than the full amount as compensation for their pain and suffering. We admire them, but suggest they call their local bar association for a referral.

Fees, Jeff's On Call!

Ad or You? Where Did the Hire Come From?



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:

The candidate answered an advertisement.