We know the frustration of discovering a client has reconnected with a candidate you originally brought to them. When a client says they don’t believe they owe you a fee, that compounds the frustration. If you’ve had recruiting experience, then the reality of back door hires is nothing new to you. Our partners at Adams, Evens & Ross have spent over two decades working on behalf of the staffing and recruiting industry to collect fees owed from companies that have failed to honor agreements made with their recruiters. This work has resulted in over a billion dollars of collected fees.
As president and founder of Adams, Evens & Ross Inc., Wilson Cole has written and spoken extensively about how to prevent and recover lost fees related to back door hires. He recently shared his latest e-book with us. It details the most common arguments of client companies that refuse to pay fees. It also discusses safeguards to find and prevent back door hires. Here are a few of our favorite chapters:
Chapter 2 – A signed contract with the right safeguards
A signed and solid contract filled with the proper safeguards is paramount. If you’re curious about those safeguards, here’s a rundown:
- The debtor (this how Cole refers to the client companies throughout the book) agrees to pay. The candidate’s position is irrelevant. This includes contracting candidates or full or part-time hires.
- A fee is owed the recruiter if a presented candidate is hired within 12 months of the last interaction. Interaction includes email correspondence regarding the candidate.
- A guarantee should only replace the specific position. It should only cover invoices paid within 30 days.
- The debtor is responsible for fee if they refer the candidate to another company, division or entity.
- The contract should include a jurisdictional clause. This maintains that the contract is governed by your state’s laws and not the client’s state’s laws.
Chapter 4 – “We already knew the candidate.”
Wilson Cole dissects nine common arguments of client companies in regards to refusing to pay a fee when it comes to back door hires. While we’re not going to go over every argument, here’s a taste of what Cole refers to as the most common protest of perpetrators of back door hires.
Cole breaks the argument apart with one sentence: “Knowing the candidate and knowing they are looking for a job are two very different things.” Cole suggests questioning this argument by asking the client company if they would prefer you no longer present candidates they may know. He also says to keep an email chain logging interactions with contact at the client company in regards to presented candidates.
Chapter 3 – A tracking system.
You may be curious why we skipped chapter 3, only to come back to it now. Chapter 3 offers some of the most valuable advice relating to fee retrieval in cases of back door hires.Cole encourages recruiters to incorporate a tracking system to keep tabs on candidates. The system should also track the corresponding clients.
Here at Recruiters Logic, the integration division of Recruiters Websites, we have teamed with Adams, Evens & Ross to streamline the tracking system process, making the tracking of candidates easier and more efficient. As experts in applicant tracking systems, we have utilized our knowledge to create an integrated system that, through the Back Door Hiring Hound resource at Adams, Evens & Ross, allows users to track presented candidates and receive alerts when a candidate gains employment by way of a back door hire.
If you’d like more information on how to retrieve fees you are owed but have lost to back door hires, contact our friends at Adams, Evens & Ross Inc. If you need an integrated applicant tracking system or an entirely new recruiting website, contact us at Recruiters Websites.