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Straight Talk for the Recruiting Profession


Articles tagged 'Jeff Allen'

Fordyce Forum

Why the Fordyce Forum?



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WHAT IS HYPE vs. WHAT IS HIP

This is the time of year when recruiters ask me about which industry conference to attend. More specifically, “WHY THE FORDYCE FORUM?”

It’s a really good question. If you’re going to take time from your desk and money from your bank, you deserve to return home able to make more placements than when you left.

Jeff's On Call!

Jeff’s On Call!: Converting From Contingency to Retained Search



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This week’s inquiry comes from Brigitte Welters:

Dear Jeff,

First of all, I really appreciate your advice and expertise concerning placement very much. I hope you can advice me on following subject matter:

A short introduction:  I manage a headhunting agency which is specialized in placement of professionals. This company is based in the Netherlands and we place mid-level to high-level professionals in the legal and financial field in the Netherlands. We work mainly for international firms. These clients are very appealing to our candidates since they offer interesting career opportunities and development for them.
Our clients set very high standards; multiple in-depth interviews and tough assessments are the rule. Working in this field of placement is very interesting and challenging; not one day is the same.

We now work for the largest part on contingency basis. Yes our clients are happy with our services, however, we now want to work for the largest part on retained fee basis. The reason we want to convert is that contingency poses many risks for us.

My question is how to convert contingency-based services to a retained fee business?

Thanks so much for your advice,

Kind regards,

Brigitte

Jeff's On Call!

Jeff’s On Call!: Background/Reference Checks



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This week’s inquiry comes from Christine Hoffman-Hicks:

Hi Jeff,

I am a regular subscriber and reader of your insightful and informative column.  My question pertains to background checks for permanent (direct hire) placements: If our client is performing a background check on our candidate, should we still run of our own as well or is our firm protected from liability if something were to happen with this candidate down the road?  Our practice has been to always perform a background check if our client does not, but if they do we’ve deemed that acceptable. I can’t help but wonder if something were to happen, could we be held liable?

Thank you!

Christine

Fees, Jeff's On Call!

Jeff’s On Call!: Candidates “In the System Already”



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This week’s inquiry comes from Rhonda Miller:

Hi Jeff,

I really appreciate your contribution of time and expertise in the Jeff’s On Call! column. Since I started reading it, I find that I have broader thinking on day-to-day scenarios and give more thought to the legalities of potential pitfalls. It is a much more enlightened perspective than before.

I have a placement in Illinois where the client has offered a 5K fee rather than the 25K required on my fee schedule because supposedly an in-house contract recruiter had the candidate in the pipeline (unbeknownst to the candidate) and had referred the candidate to some manager six months earlier – although not for any particular job.

This company is looking for employees with my candidate’s experience all the time. The manager didn’t act on the referral and then left the company. Therefore, nobody acted on the referral at all. (Since the candidate worked for a subsidiary of the client, it is possible that is how the contract recruiter got the resume. She is very aggressive, so it may have been on LinkedIn also.)

My fee schedule was signed before the client started using contract recruiters, and there is nothing about them in it. It provides that I have a 12-month referral period, but they say they had the candidate’s name in their system before my referral. There is no doubt that “but for” my efforts for four months, the candidate would not have been hired.

The internal recruiter explained the situation to the RVP for this division and came back with 5K in recognition of my efforts. She maintains that had this gone to her boss (who doesn’t want to pay outside recruiters) there would be no fee at all. I really worked long and hard on this deal.

What should I do? I don’t want to lose the 5K, but I also don’t want to give up half the fee in attorney’s fees and possibly even lose the 5K offered.

Fees, Jeff's On Call!

Jeff’s On Call!: Split Fee Owed?



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This week’s inquiry comes from Sue Yager:

Jeff, I really need your help. As an avid reader of The Fordyce Letter for 10 years now, I have always appreciated your insight and knowledge of the recruiting industry, and find myself needing your help for the first time.

I believe I have more of a moral dilemma than a legal dilemma. Here’s the story: 4 years ago I worked with another recruiter, who was with another agency, and we sometimes did splits. This other recruiter emailed a resume to me and told me this candidate was fantastic, and asked whether she would be a good fit with any of my clients. I called the candidate and did a full interview with her even though I didn’t have any job opportunities for her at the time. I kept in touch with this candidate over the past 4 years, and she is now actively interviewing with one of my clients. I have not spoken to the recruiter who sent me her resume for about 2 years, and the candidate hasn’t spoken to her for several years.

Here’s my dilemma: Do I still owe that recruiter part of the fee? I want to do the right thing, but I don’t want to give away money unnecessarily either. (P.S., there was never a formal split fee agreement in place between us.)

Thank you for all of your help.

Respectfully,

Sue

Jeff's On Call!

Jeff’s On Call!: Job Postings and Gender Discrimination



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This week’s inquiry comes from Tom Skobel:

Hello Jeff Allen!

I have read and found to be very interesting the article you wrote April 15, 2009, entitled, “Jeff On Call: What Internet Job Postings Are Illegal?” I happen to be a college student studying Human Resources Management and find labor practice laws to be interesting, and I enjoy seeing them in play in real life….After reading what are considered to be illegal job postings, I discovered, what I believe, may be an illegal job posting. I discovered the job posting in question on a reputable job search website. The title reads: “Seeking Full Time FEMALE PERSONAL ASSISTANT for Busy Executive, ready to train and start very soon. ” In addition, one of the traits reads, “Recent college graduate – no more than 5 years out of college.”

From studying Labor Law at college and reading what you have listed in your well-thought out article, I believe this job excludes males from applying for this position — gender discrimination, which is prohibited by Title VII of the Civil Rights Act of 1964. I would like to get your expert opinion on this matter.

Once again, I enjoyed reading your article. I found your article to be both enlightening and easily understandable. I look forward to read more of your work.

Sincerely,

Tom

Jeff's On Call!

Jeff’s On Call!: Revisiting the “Draw” Topic



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Editor’s Note: Jeff has covered this topic for us in the past, but as he has said, it needs to be addressed again, and more thoroughly. You can read his original post here for further information.

In the United States, a “draw” (technically known as a non-recoverable draw against commission) is the most common, yet the most misunderstood way of paying a recruiter.

I’ll show you how to get back most of that draw in a minute.  But first, let’s see how the draw arrangement works legally:

A draw is either a loan (temporarily given) or wages (mandatory “can’t-get-it-back” pay for work) depending on whether the recruiter (employee) is still employed at the end of the pay period (a loan) or not (wages).  This “disappearing salary” feature is designed to comply with the minimum wage laws.

The recruiter is given a fixed amount of money at scheduled intervals (the pay period).  Usually all payroll deductions are taken out, so it’s a net amount. 

Editor's Corner, Jeff's On Call!

An Interview with Jeff Allen, Placement Law Attorney



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The following interview is an in-depth introduction to an individual who has been writing for The Fordyce Letter for nearly 30 years. A respected contributor to TFL, he has been providing our print subscribers with invaluable information on legal issues within the business of recruiting. He has recently generously offered to bring a piece of these offerings to our website readers as well. You will notice in the menu bar to the right a section titled “Jeff’s On Call” – this new feature is your opportunity to ask questions about collecting fees, discrimination issues, PSAs, and any other situations for which you may be seeking legal advice. Please take advantage of this generous offer by clicking on “Jeff’s On Call”!


An unbelievable 28 years ago, Jeff Allen wrote his first “Placements and The Law” article for a fledgling little monograph for contingency-fee recruiters called The Fordyce Letter.

It was introduced in the March 1982 TFL like this:

NEW FEATURE STARTING

Much of our mail confirms the fact that the field of battle upon which we toil is fraught with legal landmines. And who of us hasn’t experienced the frustrations of having to teach our attorneys the basics of our business before they take up the sword in our behalf? Unfortunately, bad advice is the rule rather than the exception when dealing with attorneys who are unfamiliar with the unique character of our business.

With the April issue, we will begin a regular feature entitled “Placements and The Law” authored by Jeffrey G. Allen, B.A., J.D., C.P.C. Jeff, a nationally renowned attorney specializing in placement law, is the senior associate of the offices that bear his name in Beverly Hills and Newport Beach, California. Jeff brings a unique combination of experience to our business, having established, operated, and been a consultant with a number of executive search organizations and general employment agencies. In addition, he has held progressively responsible positions in the personnel and industrial relations field with many major employers.

His columns will bring us a practical and useful approach rather than simply reciting abstract principles of law. As the author of “Placements and The Law Reference Guide,” as a regularly sought-after speaker for all types of groups within our industry, and as one of the recognized authorities in his field, his columns will be as interesting as they are educational.

The body of work that has evolved month after month since then is truly staggering. Through over 300 PTL’s, Jeff’s legal news updates, and his special legal supplements to TFL, our subscribers have learned everything there is to know about placement law.

Today, Jeff is the preeminent attorney in our industry. He has also written more best-selling career books than anyone else in the history of publishing. From Oprah to CNBC, Jeff has appeared in every major media at one time or another.

His credentials, experience and track record transcend his winning legal representation.

Yet he remains our very own accessible, approachable Jeff Allen. A good friend, a trusted advisor, always there, and the ultimate authority on “placements and the law.”

In order to introduce those of you who don’t know Jeff to his work, I decided to do an interview with him and have him share a little about himself.

Uncategorized

Jeff On Call: More on Cold Calls, Harassment



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Q: This question relates to your October 26 post on Cold Calls & Defining Harassment. Are the rights of companies the same as the individual candidate you mention in this post? I ask in the context of an outside search firm marketing into, or attempting to recruit from, a corporation. Can the company claim they are damaged by receiving a recruiter’s phone calls (i.e., disruption/interference of normal business suffered as a result of calls into the company)?

A: Yes, the rights are basically the same. However, the intensity and the danger is much higher.

These days, it’s tempting for failing businesses to blame anyone they can. Regardless of the real reason (mismanagement, the economy, competition, etc.), losing key employees tends to trip lawsuits against those involved.

Moreover, the massive damages alleged by an employer can be expected to include reduced market share, loss of investor confidence, inability to attract talent, loss of present and future profits, etc. There’s virtually no limit on the amount of a judgment (judge-decided) or verdict (jury-decided) award, since we’re talking about compensatory (to compensate), punitive (to punish), and exemplary (to set an example) damages.

Aside from the invasion of privacy issues (which are personal to a candidate), the inducing breach of contract, interference with contractual relations, and interference with prospective economic advantage intentional tort theories are the same.

This is because the third-party (recruiter) interference allegedly disrupted the bilateral contract between the employer (source) and the employee (candidate). So each party has rights against the interference.

Of course, employers usually have more money, more lawyers, and more politics. So the likelihood of major litigation is higher and so are the stakes.

Many of these lawsuits are filed to simply give nervous management types job security. With litigation pending, they have “cover,” since their claims have credibility. And who’d terminate a key witness? I was fascinated by this move when I was in HR, since we’d have totally useless, highly paid employees doing absolutely nothing for years. They just kept the discovery pot boiling in protracted lawsuits against totally innocent recruiters and competitors. Always talking about terrible misdeeds and huge awards that they never could prove. The lawsuits took on a life of their own and reached old age.

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To participate in future Q&As, email jeff@placementlaw.com. Keep in mind you should always consult with your own attorney. Nothing
contained herein should be construed as legal advice. It is for your information only.

Uncategorized

Jeff On Call: Cold Calls and Defining Harassment



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Q: Given the ease at which recruiters can now find passive candidate information online, when does a cold-call to a candidate at their place of work constitute either harassment or an invasion of privacy (or something else)? Must the candidate declare the solicitation unwanted (as in sexual harassment) for the recruiter to become liable for something? What if the candidate has posted their employment details in the public domain as in Linkedin or Facebook, for example? Do they somehow legally waive the right to be contacted at their place of employment if they upload this information themselves (without a phone number)?

A: “Harassment” is a word used frequently by people who are hassled about anything, at any place, and at any time. But it’s difficult to imagine how a professional contact — or even a series of them by phone, email, express mail, or regular mail — could be deemed so annoying as to rise to that level.

There are no reported cases in the history of American Jurisprudence where a recruiter was even accused of harassment. Who’d bother? If there’s anything a contingency-fee recruiter doesn’t do, it’s waste time with contrary candidates. So if someone stalks an LPC (least placeable candidate), he deserves what he gets.

Now, on to the tort (non-contractual civil wrong) of invasion of privacy.