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The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'legal'

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.

Jeff's On Call!

You Can’t ‘Steal’ An Employee Who Doesn’t Want to Go



ask-jeff3

Hello Jeff -

I enjoy reading your columns. I experienced an incident on which I’d value your opinion.

I submitted a candidate (blind profile) to the recruiting manager of an AmLaw100 firm. A few hours later, I get a phone call from her. She asks  me, “Are you working for us or against us? I know that you sent an email to one of our associates recently (trying to entice them away).”

Now I feel that she won’t consider my candidate, mostly out of spite. Here are the facts:

Fees, Jeff's On Call!

Your Candidate Can Collect Your Fee If You ‘Forget’ To Get A Signed Agreement



Placements and the law logo

As long as the placement industry continues to do business without employer-signed fee schedules, candidate introductions and interview confirmations, it will be on the outside looking in. It’s cold out there, too.

Every day, we hear the “answers” to the question: “Why is it unnecessary or impractical for an employer to sign a fee confirmation?”

Among them:

  • Placements happen so fast, there’s no time to obtain a signature.
  • Hiring authorities aren’t authorized to commit their employers in advance to the payment of contingency fees.
  • It’s “customary” for the placement industry to operate on a handshake.
  • The employer is bound by the “acceptance of referrals” provision in an unsigned fee schedule.
  • The employer has the “burden of proof” to show that it didn’t hire as a result of the referral.

Unfortunately, the correct answer is “None of the above.” None of these arguments budge a judge.

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 –

Fees, Jeff's On Call!

The Law Doesn’t Care Who Arranged the Interview



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 arrange the interview.

How Client Pays:

Arranging the interview has absolutely nothing to do with your right to the fee. The legal issue is whether your activities caused the hire. You’re not

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!

Avoid the Fight and Get Your Fee When You Reorder Your Sendout Process



ask-jeff

Hi Jeff,

You are such a great help to us in figuring out what to do! Thank you for sharing your wisdom and experience.

I just placed a candidate with a large software company. I sent my standard placement agreement (25% fee) to HR but they did not sign it.

The HR person told me that we would get something processed if the candidate proceeded into the interview process.

The candidate then proceeded all the way through the process (in spite of HR stalling the paperwork), and just accepted the company’s offer of a base salary of $160k (plus another $40k in bonuses). At our standard fee of 25% of first year salary, it would be $50k.

Industry News

Tech Firms Agree to Pay $415 Million In Anti-Poaching Case



Apple

AppleA $415 million settlement proposed by four tech giants could become one of the largest anti-poaching awards if a federal judge approves.

Apple, Google, Intel Corp and Adobe Systems agreed to the amount in a court filing yesterday. A previous offer of almost $325 million was rejected last summer by the judge in the class action case, which was filed in 2011.

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