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The Fordyce Letter

Straight Talk for the Recruiting Profession

Articles tagged 'PSA'

Fees, Jeff's On Call!

Don’t Let Your ‘Blind’ Resume Become A Runaway


Dear Jeff

I find your column to be extremely helpful and have benefited from your advice on several occasions. I’m a recruiter with 21 years of experience currently working in a very candidate driven market. I have been fortunate to be recognized in the top producer category of the various personnel associations in our industry.

Since my rookie year I’ve always been taught that sending a resume blind has inherent risks because if someone sends the same resume with identification, the blind resume loses. That’s why I’m submitting the following scenario which I just encountered.

One recruiter submits a blind resume without candidate knowledge or permission, but the client does nothing with it. The description on the resume doesn’t really fit their job description. Several weeks later another recruiter submits the same resume with contact information and a presentation to the hiring authority explaining some

Jeff's On Call!

When the Client’s PSA Wants Liability Insurance, Just Say NO!


Dear Jeff:

I am a regular reader of the Fordyce Letter and especially enjoy your Jeff’s On Call! column. Your information is very interesting and helpful to our industry.  You provide excellent advice, experience, and insight into various employment law issues!

Below is a paragraph from a good client’s contract. As you can see, they are asking for general liability insurance. I asked them about my exposure as a recruiter. You will see their response below. It is my understanding that general liability insurance will not provide the coverage they indicate. What are your thoughts?

10.  INSURANCE  RECRUITER shall maintain in full force and effect, at their own cost and expense, and in a form acceptable to us general liability insurance in the amount of $1,000,000.00 per occurrence, general aggregate limit of $2,000,000.00.  This insurance shall be kept current and in force for the term of this Agreement.  All policies must be written through an insurance company with an overall A.M. Best Rating of B+ or better.  RECRUITER must provide a certificate of insurance evidencing compliance with the above requirements upon request. 

We are looking for recruiting firms to carry insurance in the amount of $1,000,000 per occurrence to cover issues from their recruiting of an individual. For instance, if you recruit and we hire someone that you knew or should have known had a propensity towards violence and then the employee you recruited goes on a shooting spree, then you have insurance to cover the negligent hiring. Does that make sense? It is more along the lines of employment liability. We have had recruiters with other types of coverage also.

Thank you!

Howard Lehman

Hi Howard,

It’s a pleasure assisting you and our JOC readers across the placement plain!

When you ask me about your exposure as a recruiter, I answer a little differently than your client. I answer in four syllables: “UN-LI-MI-TED.”

Ask Barb, Fees

The 12-Month Replacement Guarantee Is A Client Pleaser

Ask Barb

Dear Barb:

You once referred to an extended guarantee, can you elaborate on that for me. We have clients wanting a six month guarantee, which we are not willing to consider. I would love your thoughts on this topic.

George Z, Palos Hills, IL

Dear George:

Years ago I wanted to eliminate the guarantee all together. My thoughts were that it is impossible for us to guarantee the success of our candidates when we don’t supervise them. Well that idea went over like a lead brick. I then held a brainstorming session with some of my best clients. I was tired of feeling like “let’s make a deal” when a candidate would quit on the 92nd day of a 90 day guarantee. If it was with a key account, I honored the guarantee.

Fees, Jeff's On Call!

Can You Get Paid Even When You Don’t Make A Placement? Yes, Says Jeff


Dear Jeff,

Thank you for the excellent advice that you give all of us recruiters. Your column, along with The Fordyce Letter, have guided me through many sticky situations that have come up throughout the years. You folks are the greatest!

I have been working on a contingency basis with a company that wanted to use the same recruitment agreement as a company that they had acquired. They gave me six sales jobs to work on.

I identified good candidates for three of the six territories and was starting to submit more applicants for the other three territories. I then received an email from the sales director that the company had just entered into an exclusive agreement with another recruiter, and I can only work on the three of the six territories that I have been working with. After all of this, only one of my applicants will be getting a job offer. Do you believe that I have any remedies? (They also suddenly want me to sign a new contract with the main company, although, the contract will be canceled immediately.) 

Jeff's On Call!

Jeff’s On Call!: Employer PSA Limitations


This week’s inquiry comes from Michael Evdemon II:


I am a veteran recruiter for 2 ½ decades in the insurance industry. During that time, I’ve benefited tremendously from your writing, legal knowledge, and improvement of our profession.

My concern is that many of the employer PSA’s (placement service agreements) mandate that the search is only for the specific position. This cuts our effectiveness and ability to make additional placements by at least half — before we even pick up the phone or send an email.

It also undercuts what a professional search firm should be doing for a client. The recruiter is prevented from presenting highly-qualified candidates that have been determined to be an asset to the client. Why would a quality search firm be denied to inform an organization like that?

From your writing, it seems this is legal as long as the exclusion is job-related. But what can we do about it?

Thanks for your anticipated reply!