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The Fordyce Letter

Straight Talk for the Recruiting Profession


Articles tagged 'legal'

Fees, Jeff's On Call!, Staffing

Know These 3 Cs So You Get Your Temp Conversion Fee



Placements and the law logo

From its humble beginnings as an occasional accommodation to clients of temporary services, the temp-to-perm conversion has become a major source of revenue to the placement industry. Its popularity can be directly traced to permanent placement (“full-time”) services entering the temporary field. They don’t look at the conversion as the loss of an employee, but the gain of a placement fee. It’s a way to keep a qualified candidate “on ice” while giving the client the opportunity to “try before you buy.”

Unfortunately, three problems exist in enforcing conversion fees: Confusion, collusion and conspiracies. Understanding them will enable you to collect when the conversion occurs.

Fees, Jeff's On Call!

Do Everything You Can to Get An Email Response And You Get Your Fee



JeffOnCall_logo

Hi Jeff,

Over the years I have benefited greatly from Jeff’s On Call column. It’s the first place I look to when it comes to seeking a legal opinion. Our service contract to client companies include a lot of phrases and words taken from your column and they have in court proven successful on several occasions. Thank you.

Shrewd HR and procurement departments are everywhere. I write from outside of the U.S. from where our company is a leading market player.

We presented, unsolicited, a candidate to a multinational company we never worked with before. We emailed two documents — the résumé and a placement agreement — on both stating that a fee of 30% is charged should they hire our candidate within 12 months. They didn’t sign the placement agreement but wanted to interview our candidate. Which they did but without hiring.

Three months later, we hear that the candidate is now hired. The company claims another recruiter presented the candidate and has already been paid a fee. Which may or may not have happened. The company refuses to acknowledge that we presented the candidate, they refuse to pay our placement fee that we have invoiced based on an estimate of what we think the candidate’s salary is.

Fees, Jeff's On Call!

“In Any Capacity” Are Fee-Collecting Magic Words



Jeff Allen COllection Tip

Editor’s note: Jeff Allen has heard every employer excuse that you can imagine for not paying up — and dozens more that defy imagination. Over the last 18 months, he’s documented one a week. 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 changed the candidate’s job title.

How Client Pays:

Fees, Jeff's On Call!

Checkmating the “We Never Got the Resume” Defense



Placements and the law logo

Maybe you’ve discovered a placement from a mass resume emailing. Or maybe you were tracking one, and thought the client was working from the resume you sent. Or maybe you even discussed the candidate with the client.

Proving an email was received is a lot like winning at chess.

You establish receipt by methodically closing off each opening, one at a time. The client eventually gets caught. It can’t establish non-receipt.

There are five moves you must master. Executing them is ve-r-r-ry tricky, because all you really have going for you is you saying the resume was sent. If your printout of an email is what you’re using, you haven’t moved a pawn. It’s your email, so you’re just saying it again electronically. You have the burden of proof by a preponderance of the evidence, and that’s not it.

Jeff's On Call!, The Business of Recruiting

Using 1099 Recruiters? You Might As Well Invite the IRS to Your Audit



JeffOnCall_new

Jeff,

Thank you for your contribution to my success! Your articles regarding fee schedules are ones I wish I had read many years ago.

I have a question concerning engaging recruiters. I am interested in increasing my recruiter support. I am interested in individuals who are experienced who would like to represent my company as agents or representatives, but be compensated as 1099 associates or as employees who are 100% commission. I envision them being able to use the company resources, i.e. database, business cards, email, researcher, etc without signature authority on new clients. Some would having the flexibility to work when they want to work, in some instances part-time, others more along the traditional recruiter model of what the job takes. They will enter client and contact information into our CRM system for new clients as well as when contacting contacts in our database.

Which is the appropriate employee designation? And is there an agreement that protects my company, which includes a non-solicitation clause that would protect my company’s interests in the event an individual would choose to start or decide to return to his/her own independent business?

Fees, Jeff's On Call!

Don’t Tie Yourself To A Title In Your Fee Agreement



Jeff Allen COllection Tip

Editor’s note: Jeff Allen has heard every employer excuse that you can imagine for not paying up — and dozens more that defy imagination. Over the last 18 months, he’s documented one a week. 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 hired the candidate in a lower classification.

Fees, Jeff's On Call!

Ask These Five Questions and Your Fee Is Assured



Placements and the law logo

Day in and day out, we receive calls about placement fees that are lost because the employer alleges it acted on the referral from another source. Since lawyers live in a world of proof, our belief as to whether the allegations are true really makes no difference. As a matter of proof, they can short-circuit the fee. This report is designed to give you an approach that will reduce the “defense of another source” and enable you to win when you’re faced with it.

In order of popularity, the other sources claimed are:

  1. Employee referral.
  2. Candidate response to an advertisement.
  3. Candidate mass mailing and inquiry.
  4. Prior contact with candidate.
  5. Prior referral by another recruiter.

In all of these, the other source usually surfaces after your submission of contact information. This makes the story suspicious, but the argument is that the employer had no way of knowing the candidate was the same until you revealed the name. So the key is to find out before you give away the placement.

Jeff's On Call!

A Good CAAR Won’t Take You To the Courthouse



JeffOnCall_new

Hi Jeff

I appreciate all of the useful information provided in The Fordyce Letter every week. There is always something beneficial to our business in every issue.

I am a partner with a search firm in Canada and would like your help with the following.

We were approached to do a search in Vancouver. Knowing that the company was in financial difficulty we declined. Another search firm placed two candidates there (as we were questioning our decision to pass on the search!). The company did shut down four months later, which leads me to this question. Can a candidate attempt legal action against the recruiter in this instance?

Is there a document that we could get candidates to sign prior to placing them in any role that would protect us from these type of occurrences? I would hope that any recruiter would not take on a search where they knew the client was in difficulty due to the risks to the candidates as well as fees not being paid, however these situations are often unpredictable.

Jeff, I thank you for taking the time to reply and hope that this will benefit others.

With best wishes,

Beth C.

 Jeff Responds

Hi Beth,

Business

Nation’s Law Firms Shift Focus to Lateral Hiring



Law firm hiring

Law firm hiringSearch firms haven’t yet seen it, but those specializing in attorney placement could be in for a boon in the coming years, as the nation’s largest law firms accelerate their hiring of mid-level attorneys.

The traditional model of hiring summer associates who then get hired as entry-level attorneys, eventually working their way up the career ladder before retiring from the firm where they started is essentially dead.

Fees, Jeff's On Call!

When the Title Changes, “In Any Capacity” Gets You Paid



Jeff Allen COllection Tip

Editor’s note: Jeff Allen has heard every employer excuse that you can imagine for not paying up — and dozens more that defy imagination. Over the last 18 months, he’s documented one a week. 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 changed the candidate’s job title.