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The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'Fees'

Fees, Jeff's On Call!, Legal

85% Of Fee Agreements Are Defective. Is Yours?



ask-jeff4

Jeff,

Thank you for the opportunity to get a response.

I have been in the electrical industry for 23+ years, headhunting for 16+ years. I had a concurrent career as in the US Army, Colonel in the Army National Guard, and an Iraq War Veteran.

We have a small, highly effective search firm.

I’ve been reading your advice in The Fordyce Letter for 16+ years and have benefited too many times to recall. It is simply awesome.

Now to my question: When do you officially determine resignation?

Here are the facts:

  • Written agreement with 90 day “replace” guarantee.
  • Candidate verbally communicated intent to resign prior to 90 days and is talked off the ledge and stays.
  • Candidate presents after 90 days in writing intent to resign. Candidate’s last day of work is after the 90 days.
  • Company communicates to me after initial communication by candidate of intent to resign to initiate replacement search. Found replacement and hired.
  • HR offers 50% payment with rationale that there is a gray area because the intent to resign (verbal) and communication to initiate replacement was prior to 90 days.

Jeff, thank you so much for once again adding value to the recruiting industry. In 16+years in the business this was a unique one and once again you came through.

Appreciate you and your expertise.

Thank you!

Jim Pabis
President
Saratoga Source, LLC

 

Hi Jim,

Thanks for writing – and for your service in protecting us all. If it wasn’t for people like you, people like us would be – who knows?

I’m so proud to be assisting you, and appreciate you having a laugh with me in spite of your angst. Truly, the pleasure is mine.

Fees, Jeff's On Call!

The Fee Is Yours If You Were the Source of the Hire



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:

We would have found the candidate on our own.

How Client Pays:

This “defense” is no defense at all.

Collections

Document Your Referral Performance With a Receipt



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:

You didn’t follow up on the referral.

How Client Pays:

Once you’ve disclosed contact information, you lose all control over the placement.

Fees, Jeff's On Call!

There Is No Such Thing As A Bona Fide Job Order



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:

It wasn’t a “bona fide job order.”

How Client Pays:

There’s no such thing as a “bona fide job order.” It just sounds legitimate –

Ask Barb

The 12-Month, Pro-Rated Candidate Guarantee



Ask Barb
Editor’s note: The following is an Ask Barb classic.

Dear Barb:

You once referred to an extended guarantee, can you elaborate on that for me. We have clients wanting a six month guarantee, which we are not willing to consider. I would love your thoughts on this topic.

George, IL

Dear George:

Years ago I wanted to eliminate the guarantee all together. My thoughts

Fees, Jeff's On Call!

My Candidate Said ‘Yes’ Then ‘No.’ Is My Fee Gone?



ask-jeff2

Hi Jeff,

I’ve been reading The Fordyce Letter for over a decade and thoroughly appreciate your unique insight, recommendations to readers, and knowledge of recruitment law.

Thank you for the many years of selfless value you have offered and your searing wisdom in the midst of despair!

I have a quick situation to share hoping you might offer your advice on the matter:

I recently went through a 90+ day process with a candidate late last year for a very critical senior leadership role for our client. When I say 90 days, that’s from the time of initial presentation to the time of an offer letter in writing. The candidate also accepted in writing after squeezing (with our help) an additional $130K out of our client.  His total package (with family relocation and additional perks) was over $500K, so this was an important placement for the client and our firm.

Just as the candidate was preparing to board a plane in Florida to our client’s corporate office in Arizona for the orientation, our client received a call from him indicating that he was pulling out due to family reasons. That was his only excuse.

Jeff's On Call!, Legal

What Do You Mean ‘Not Authorized?’



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:

You dealt with an “unauthorized hiring authority.”

How Client Pays:

Fees, Jeff's On Call!

Collecting When There’s a No-Fee Policy



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:

We don’t pay fees.

How Client Pays:

Sometimes it’s for “certain positions,” sometimes it’s not. Sometimes it’s “company policy,” sometimes it’s personal preference. Sometimes it’s in writing, sometimes it’s not. Sometimes it’s a low fee ceiling, sometimes it’s

Fees, Jeff's On Call!

The Candidate Can’t Waive Your Fee



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 candidate assured us you weren’t representing him.

How Client Pays:

There are three ways this attempted waiver of the fee occurs:

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