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The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'collections'

Fees, Jeff's On Call!

When the Title Changes, “In Any Capacity” Gets You Paid



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 changed the candidate’s job title.

Fees, Jeff's On Call!

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



jeffoncall2

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.

Fees, Jeff's On Call!

Hired In A Different Job? With These Words You Collect



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 in a different position.

How Client Pays:

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:

Fees, For Managers, The Business of Recruiting

A Practical Guide to Collections Invoicing



Collections chart

Collections chartYou’ve done all the work. Sent the invoice. Celebrated. Spent the money. And you run to the post office daily hoping you didn’t spend the money too soon. Sound familiar?

After collecting in excess of $8 million over the last 6 years, I’m happy to say I have only had to go to court once in a collection proceeding. We won with a jury trial that lasted over four days.

When I was a bank president I went through many collection activities. In fact, at one point I had to go through the collection of a $5 million indirect car loan portfolio. This was due to a rogue lender, which resulted in hundreds of repossessed vehicles. Collections are a necessary evil in all industries. Here are some ideas that I have applied to the search business.

Fees, Jeff's On Call!

HELP! I’m Being Played, Not Paid, For a Manager’s Bad Mistakes



JeffOnCall_new

Hi Jeff,

Firstly, what a great website — instantly saved on my favourites after having found you!

And now, a little bit about me.  I’ve been in recruitment for 16 years, love the rewards and challenges immensely and have worked and lived in South Africa, and now in New Zealand.

A new quandary has surfaced and I am not sure how to deal with it. It’s a first for me.  Maybe you could provide a solution?

My client has used our services for two year,s and I have successfully placed most of his staff.  Great relationship, until now.

Earlier this year I placed a sales person who did not last their three month trial period. I was asked to replace the candidate. At the same time I was asked to place a senior manager for the same company, which I did in a short space of time.

I billed the client for the senior manager’s role as per normal.

Fees, Jeff's On Call!

Take Out the “Permanent” From Your Schedule to Avoid the Temp Trap



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 as a temporary employee.

How Client Pays

Look at your fee schedule. See how it says (or conveys) employment will be “permanent” or “regular.” Can a temp assignment avoid its terms?

One trap you’ll probably miss is the annualized compensation. Somewhere clearly in your schedule, you must state something (consistent with the rest of the terms) like:

While projected annual compensation is used to determine the fee, anticipated or actual duration of the candidate’s tenure is not a factor in computing the amount due.

Then again, you might just have a rubber stamp made that reads: Life is a temporary assignment.

Fee schedules, employer-generated PSA’s (placement service agreements), e-mail boilerplate, invoices, and all other communication to clients, should contain consistent language that decouples the fee from the tenure of the candidate.

That will eliminate the “temp defense.”

Fees, Jeff's On Call!

Your Sendout Suddenly Became a Temp? Here’s What You Do



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 through a temporary service.

How Client Pays:

Fees, Jeff's On Call!

What Not to Say, and What You Need to Say to Get Paid



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.

The client claims: “We hired the candidate as a consultant.”

What you should do: Over the past decade, employers have been cashing in on the consulting boom.  Unfortunately, contingency-fee recruiters have been the paymasters.

When you send a fee schedule that contains any of these 10 words, you’re aiming your recruiting revolver at your fee-free foot:

Fees, Jeff's On Call!

Track Your Referrals to Avoid ‘Back-door’ Hires



Jeff Allen COllection Tip

Editor’s note: With this post, Jeff’s Collection Tip of the Week column goes on break. Jeff will continue writing his Placements and the Law column in the print edition of The Fordyce Letter. Jeff also answers legal questions about search and placement in his occasional Jeff’s On Call articles. You can find Jeff’s past Collection Tips columns here.

What Client Says: 

 The delay was too long from your referral to the hire.