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The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'collections'

Fees, Jeff's On Call!

Invoice Carefully – The Salary Might Be Higher Than They Say



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’s staring salary is lower.

Fees, Jeff's On Call!

“In Any Capacity” Are Fee-Collecting Magic Words



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.

How Client Pays:

The Business of Recruiting

A Practical Guide to Collections Invoicing



Collections chart

money-handsYou’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 six 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. It 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!

Don’t Tie Yourself To A Title In Your Fee Agreement



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 lower classification.

Fees, Jeff's On Call!

Ask These Five Questions and Your Fee Is Assured



Placements and the law logo

Day in and day out, we receive calls about placement fees that are lost because the employer alleges it acted on the referral from another source. Since lawyers live in a world of proof, our belief as to whether the allegations are true really makes no difference. As a matter of proof, they can short-circuit the fee. This report is designed to give you an approach that will reduce the “defense of another source” and enable you to win when you’re faced with it.

In order of popularity, the other sources claimed are:

  1. Employee referral.
  2. Candidate response to an advertisement.
  3. Candidate mass mailing and inquiry.
  4. Prior contact with candidate.
  5. Prior referral by another recruiter.

In all of these, the other source usually surfaces after your submission of contact information. This makes the story suspicious, but the argument is that the employer had no way of knowing the candidate was the same until you revealed the name. So the key is to find out before you give away the placement.

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.