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The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'Fees'

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.

Fees, Staffing

Are You Leaving Money On the Table When Your Temp Goes Perm?



Sales shopping global - free

Sales shopping global - freeHaving trained or consulted with hundreds of temporary staffing services and contract staffing firms around this country, I am continually amazed by the variety of approaches utilized to handle the transfer of an employee from the staffing services payroll to the payroll of the client’s organization. The term most commonly used to describe this process is “Temp-to-Hire”.

My purpose here is not to discuss whether or not you should charge your client a conversion fee for the temp-to-hire process. Rather it is to provide you with a conceptual foundation on which to make that determination. Consider the following two realities.

Fees, Jeff's On Call!

No Proof Your Fee Schedule Was Accepted? You Lose



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 schedule wasn’t received.

How Client Pays:

You’ve probably wondered where all those undelivered emails and letters with fee schedules went.

Fees, Jeff's On Call!

Collecting When the Candidate Says “No Charge”



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 said you wouldn’t charge anything.

How Client Pays:

This is one of those naive “defenses” only a foolish fee-fighter would allege.

Fees, Jeff's On Call!

Why Adam & Eve Won’t Get the Fee (and Neither Will You)



ask-jeff4

Hello Jeff,

As an avid follower of yours, I’m constantly learning the do’s and don’ts of executive search. Thank you for this vital information!

I can’t imagine this is the first question of this kind. But if anyone can help me, it’s you.

My client engaged me in an a VP contingency search for which I introduced a VP from a similar business. It took much convincing to ignite the interest of this candidate and my client was very pleased with the introduction. They interviewed my candidate and formed quite a quick bond — several meetings later, the VP candidate received a verbal offer. After much contemplation, the candidate felt she was not ready to leave her employer for a vertical move and she declined the position.

Here’s where it gets dicey: in lieu of accepting the job offer, my candidate offered up a referral — one of her subordinates who she felt was ready to advance into a VP role. So, in essence the VP candidate who I sent to my client, in turn directly referred a candidate to my client who they ultimately hired.

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

Industry News

Hiring Programmers. Degree Not Required



Glassodoor Q2 employee survey

Glassodoor Q2 employee surveyBy a surprisingly large percentage, CIOs  put more emphasis on skills and experience than on tech degrees from prestigious universities.

A Robert Half Technology survey of some 2,400 chief information officers at companies with more than 100 employees found 71% place “more weight on skills and experience than on whether or not a candidate attended college/university.” Another 12% said university prestige didn’t matter at all.

Now, that’s not to say most tech executives complete ignore degrees — 17% say they put at least some weight on a candidate’s education. But what the majority look for first are candidates who can get the job done.

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?

Industry News

Crowdsourcing Arms Race: $100k for a President



NRG employee referral

NRG employee referralCandidate referrals are taking on the feel of an arms race.

The payments have been escalating: $5,000, then $15,000 (plus a shot at a trip around the world), then $20,000 and $30,000.

Now, NRG Energy, a Fortune 250 power and energy company, has trumped the others, putting up $100k as the reward to the person — individual recruiters can play, but not agencies — who refers the next president of a new NRG division.

 

Yes, indeed, NRG will pay you $100,000 if you refer a U.S. candidate who gets selected as president of NRG Home. If you refer yourself, the money goes to charity, but you get to pick which one.

Jennifer Wallace, NRG senior vice president for human resources says the company “wanted the referral fee to generate excitement and drive people to action. The position we are searching for is a unique one, so our crowdsourcing campaign had to be innovative as well.”

People can only refer one person, and it has to be done by August 22. Use this form to do the referring. The job description is here. The fine print is here.