Welcome to The Fordyce Letter:
This week’s inquiry comes from Floyd Prescott:
Jeff,
Over the years, I have learned much from viewing your column with bemused detachment, observing the predicaments “less savvy” recruiters have gotten themselves into through slipshod practices with unsavory clients. With 15 years of industry experience, I assumed I had seen everything and had the bases covered. Never had a client who refused to pay, until now. Your outstanding expertise is badly needed here and now.
My formerly best client of 13+ years with 60 some placements has hired a candidate I showed them as a consultant for about 6 months and has stated they don’t owe me any compensation for his services since no permanent placement occurred. I am working on finding a permanent replacement which I may or may not be able to do and they feel that fee, if earned again, should suffice for both. I have argued that would be two separate events to no avail. I have some suspicion that they are using this chump, who agreed to work at a monthly rate based on the full time base they originally offered him (half what he previously earned) before determining he could not sell his property and relo, and then plan to discard him when the project is done and declare the search over, owing me nothing. They are paying for his weekly travel and he seems happy with the arrangement so far. Both parties have talked about making him permanent but the relo situation does not seem resolvable in this real estate market. The client has said they will (conveniently?) not consider a long-term commuting scenario.
I do not have a current signed agreement and have operated on a handshake since 2000. I do have a signed agreement from 1998 when I was with another firm that says any employment results in a fee (which has always been my understanding going forward from there). I know I have been an idiot but they have always had searches that I work on contingency and they have always paid my 30 percent fee. I did not anticipate this situation arising.
There is other money on the table here that would be resolved in a few months. Client has shown some marginal behavior in the past but has overall been reasonable. They are highly respected in the community. I would consider declaring “Broken Arrow” and calling in artillery and air strikes on my position if it makes sense and forgo future business as I have a hard time giving them a pass on this.
You advice greatly appreciated.
Regards,
Floyd
Thirty six years ago, I was an accountant. Happily or unhappily, as the case may be, putting lots of numbers into lots of big black books. Yes, they were big black books. Edison had invented the light bulb but Microsoft was some kind of fabric that kept small children and big dogs from making a mess on pillows . Being not too long out of a divorce I was focused on talking on the phone to discover what was going on with the rest of the world of newly divorced people — planning where and what time the “young and the restless” were going to solve the problems of the world that night. In a fit of pique, my boss walked by my office and uttered the now infamous words, “Why don’t you go find a job where you can do what you do best…talk on the phone.”
