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Straight Talk for the Recruiting Profession


Articles tagged 'Jeff Allen'

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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.

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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.

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Libel and Slandor: Liability for Candor



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The recruiting business is a business of words…discussing competitors, checking references, passing information back and forth, and always comparing one employer or employee to another. It’s unrealistic to expect objectivity when your fee is on the line.

But far more than your fee is on the line; you risk unlimited personal liability for words that injure someone else. This is the area of law known as defamation.

Slander is defamation by spoken words, while libel is by any other means (written, taped, pictured, etc.). It’s often difficult to determine where slander ends and libel begins (writing a reference check based on a phone conversation, etc.), but if the words are defamatory, the only difference is that slander is more difficult to prove.

The words must:

  • Be published (communicated) to third parties.
  • Be about the victim.
  • Defame (lower the reputation or standing of) the victim.
  • Damage the victim.

The definitions and examples that follow should make you the resident expert at the office, maybe even keep you out of trouble.

PUBLICATION

The word publication is misleading. It means communication in any form.

In the case of written communication, it is presumed that at least one person read it. This means that in libel cases, the burden of proof shifts to the communicator. He or she must show the information wasn’t read.

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Jeff on Call: Where Is the Leverage in My Fees?



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Q: I read one of your articles on “Does Arranging Interview = Placement Fee?” I’m reading the book SEARCH AND PLACEMENT by Larry Nobles. He talks about the marketing cold call in which we present a qualified candidate to a company when we don’t know if they have openings. I understand the whole point is to get a search assignment, but if they like the candidate I’m presenting and want to interview that person, when should I mention the fee? After I suggest we set up an interview or before? Should I say something like, “Great, I’ll fax over our client agreement and you can give me a couple of good interview dates”? The book talks about closing on a search assignment but says nothing about what to say besides “Let’s set up an interview,” when they happen to want to meet the person I’m calling about.

Thank you,
Kenneth Stallworth

Dear Ken,

I’m honored to answer this question because it mentions Larry Nobles.

Larry died a decade ago from inoperable brain cancer. I remember talking with Fordyce Founding Father Paul Hawkinson after Larry visited him in St. Louis, knowing it would be for the last time. A few hours after dropping him off at the airport, Paul received the call.

Larry was among the few extraordinary people who keep our industry placing. His techniques, his delivery, and his “desk-up” knowledge were superb. He was a great guy, as unpretentious as he was wise. Larry still lives through his work that he shared so generously during his life. You can still buy his classic books at www.larrynobles.com.

So speaking for this angel on high, here’s my reply:

Your greatest leverage exists at one point, and one point only. It’s just after you present — and just before you identify — a candidate the client thinks she wants to hire.

Note there are two phases to the referral:

1. Present, and
2. Identify.

If you haven’t fully cleared your fee in writing prior to identifying the candidate, you’ve lost your leverage — and given away your stock in trade.

Best wishes for collecting your well-earned fees. Clearing and documenting them before the sendout is the key!

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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.

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Jeff on Call: Recruiting From Former Clients?



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Q: How long must I wait before I recruit from a former client?

The underlying question is, “What constitutes a former client?”

Establishing a recruiter-client relationship usually involves five major steps:

  1. Receiving a job order.
  2. Clearing the fee.
  3. Transmitting the fee schedule.
  4. Sending out the candidate for an interview.
  5. Placing the candidate.

Even if you do all of these things, ask any human resourcer whether his company is your “client” and he’ll reflexively answer, “No.” But he’ll change his answer almost as fast if:

  • He’s trying to prevent you from raiding his company.
  • He wants you to be responsible for your candidate who couldn’t, wouldn’t, or shouldn’t have been hired.
  • He wants you to pay for the mistakes, misdeeds, or mishaps of your candidate.
    He wants you to do a little free espionage on his company’s competitors.
  • He wants you to conduct a free survey of industry hiring and pay practices.

Unless you’re accepting retainers or placing temps on site with the business, use your best judgment. You’re under no legal obligation to wait.

Otherwise, waiting one year is more than enough time — and be careful not to be accused of initiating the communication.

If you do decide to run with a candidate and you’re not sure whether there will be repercussions, tell him you’ll work with him only if he notifies management, and obtains the clients’ consent.

An email or phone call to you from the client is fine. If it’s a call, ask for confirmation by email or do it yourself.

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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.

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Jeff On Call: How Will Incorporating My Business Protect My Assets?



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Q: How will incorporating my business protect my assets?

While the person claiming money or some other relief will undoubtedly name you personally, a corporation offers an additional layer of protection by virtue of its separate legal entity status under the law. Legally it is a separate person for liability purposes. Not necessarily the only person, though.

You’ll pay initial legal fees and recurring accounting fees. You must comply with certain state meeting and recordkeeping requirements. You’ll also pay additional corporate taxes.

Unlike a simple sole proprietorship or general partnership that merely requires a fictitious business name filing with the local county recorder’s office, corporations are more complicated.

However if you take your corporation seriously, a court will too.

This means:

  • Fully and completely finishing the entire incorporation process. Filing the articles of incorporation, preparing by-laws and first meeting minutes, issuing stock certificates, opening a separate bank account, and completing any federal, state, and local requirements.
  • Maintaining the books and records required by federal and state agencies.
  • Filing all official reports required by federal, state, and local agencies.
  • Filing all federal and state corporate and personal tax returns, being certain they are consistent.
  • Keeping corporate activities financially and operationally separate from personal activities.

Of course, consult with your attorney and accountant before incorporating.

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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.

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Jeff On Call: Is a Corporation Right for My Business?



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Q: Is a corporation right for my business?

If you have multiple owners (other than spouses) or employees, there are distinct advantages.

These legal entities exist because a properly established and maintained corporation is a separate person under the law. Therefore (at least in theory) the corporate assets and liabilities are not those of the owners (shareholders).

Jeff's On Call!

Jeff on Call: What Can I Ask In a Reference Check?



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Q: What can I ask in a reference check?

As many personal and professional questions as you like. Just be sure you have the consent of the candidate in writing. There are no specific restrictions, but of course don’t cross the line into asking about:

  • Race
  • Religion
  • Sexual Preference
  • Age
  • Physical Characteristics
  • Mental Health
  • Marital Status
  • Family Responsibilities

As long as you have the consent of the candidate, disclosure is the reference’s problem.

There should be a law against reference checking. It’s the most subjective, easily contrived and inaccurate way possible to gauge who will become a successful employee.

The area of law is known as defamation or defamation of character. There are two types — libel (written) and slander (oral). Three probes can be used to find out if you have a problem.

  1. The communication must be likely to interfere with the candidate’s employment.
  2. The communication must be false. (How do you know? Attempt to verify it, and document your efforts. This may be enough to prove your allegation.)
  3. The communication must be represented as fact rather than opinion. (“John was absent from work at least two days each month.”, not “John seemed to be absent from work a lot.”)

Since employment is considered important, false statements of fact are presumed (legally assumed) to be malicious (defamation per se) invoking punitive and exemplary damages without the usual burden of proof.

Fortunately, a majority of states have recognized a conditional privilege to protect those who obtain information about a prospective employee on behalf of a client. This was acknowledged in a typical case involving a nurse’s registry. (Judge v. Rockford Memorial Hospital, 17 IllApp2d 161, 217 P2d 687)

If you want to get candidates hired like crazy, pick up a copy of my book The Perfect Job Reference. It’s currently out of print, but you can get a copy from your library, used bookstore, or by Googling the title on the Internet.

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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.

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Highlights from Fordyce Forum #3



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As an attendee of all three “forums,” I feel that I am a well-qualified candidate to comment on the goings-on of this year’s recent event at The M Resort in Las Vegas.

To begin with, who says there is nothing good about a “bad economy?” Hogwash!

The past year’s financial downturn is, in part, responsible for the renewed energy, collective spirit, return to the basics of our business and an overall invigorating camaraderie that clearly characterized this conference and for me, set it apart from the other two years.

The whole event was charged with a soulful vibe of WE are all in this together.

So here’s to better times, but more importantly, here’s to the throbbing, no make that pounding or how about thriving heartbeat that was the essence of this Fordyce Forum and is the indefatigable power of the recruiting professional.

From the incredibly driven (but somehow balanced) and brilliant Barb Bruno, to the uniquely charismatic and effervescent Jeff Skrentny, to the myriad of marvelous speakers who spewed invaluable headhunting info to the crowd, this “tradeshow” had real class. Plus, the M Resort was an appropriately fine host, resplendent with state-of-the-art facilities, exceptional cuisine and yes, beautiful hostesses throughout the casino.

But back to the real show.

As I was saying, this one “felt” different. Maybe it was because Mr. Skrentny emphasized with his opening remarks for all us to benefit not only from the “experts on stage” but also from all of the attendees who invested their time, energy, and money to be there to network and connect. Or maybe it’s because we are all now forced to pull together on our end of the tug-of-war-rope so tightly to survive and succeed.

Either way, all I know is that everywhere I went, in every venue I found meaningful conversation, genuine smiles, helpful anecdotes, positive attitudes, and truly practical advice.

We came in all shapes, colors, and sizes; literally. And I came home with a dozen or more business cards, a split-fee partner or three, and a “Candidate Profiling Test” to complement my search services that I have already encouraged one of my new clients to implement.

Most important, I came home with a clear recognition of the strength, seriousness, savvy, resilience, and vision of our industry. I can so easily say that I am truly proud, no make that honored and humbled, to be a part of such a fine collection of human beings that make up the core the Executive Search/Staffing/Recruitment Industry.

Whatever your niche, do not miss this event in 2010!!! Fordyce Forum 2010 will be held once again at the beautiful M Resort, so mark your calendars for June 9-11, 2010.

One more formal thank you to Mr. Jeff Allen, whom we all benefit from every month in The Fordyce Letter. Not only does Mr. Allen pour his heart, soul, blood, sweat, and tears into the industry through his written contribution to TFL each month, but he took the time to organize the last (and maybe best) breakout session of the entire conference.

This “hour of power” is what Jeff was really talking about. It was called the Fordyce Forum Council and this event had no preset agenda nor was it dominated by one speaker. This session was truly interactive and revealed how mutually beneficial a group of committed professionals can be to one another. It was the essence of what we do at times like the 3rd annual FF, and at times when we need it most, it was learning, growing, and benefiting from one another at its best!

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Jeff On Call: How Long Must I Keep My Placement Files?



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Q: How long must I keep my placement files?

Three years has worked well, and conforms to the universally known IRS tax record retention period.

The federal, state, and local record retention periods range from one to five years. With so many legal and administrative rules, a three-year period should suffice for job orders, resumes, and any candidate background checks.

Of course, if you know an issue has arisen or is likely to arise, retain all documents for that year forward to the present.

There are serious, separate penalties for the failure to keep employment records and transactions.

If you don’t maintain accurate written records of all job orders backing up all Internet job postings, you’re asking for trouble. You also must keep files on all responses, sendouts, e-mail correspondence, and everything else relating to these transactions regardless of whether or not you place anyone.

Under the federal law, these records must be maintained for at least one year. (29 CFR 1602.14 and 29 CFR 1627.2, et seq.)

So our general suggestion is to maintain everything meticulously for three years. But check with your local law library or lawyer for specific record retention periods.

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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.