When it’s time to pay recruitment fees, what would you feel if your previously happy client is suddenly and mysteriously silent?
They don’t respond to emails or phone calls, and it’s challenging to get in touch with them. Your costs for a job well done appear to have been unpaid, and it seems that you have been ghosted.
What can you do, then, to prevent unpaid fees from happening in the first place and deal with the issue when it does arise?
- Make your terms binding
The issue that many recruiters encounter—and frequently the justification that many clients provide for not paying fees—is whether or not the conditions of their business are legally binding.
For instance, were the client’s understanding and acceptance of the fees and general business terms? In order to guarantee that fees can be properly claimed, proof that this has been the case is essential. A verbal agreement cannot be considered legally enforceable because it is open to challenge or outright denial.
Therefore, it’s crucial to get your client’s consent in writing so that you can efficiently resolve fee disagreements.
- Is there an effective cause?
According to the law of effective cause, an agent may only request payment if they were the “effective cause” of the actual hire. This is frequently a clear-cut instance of adhering to the procedure the recruiter utilized to place the candidate.
Typically, email chains from when a candidate’s CV was obtained, the first time they were contacted, when an interview was scheduled, and so forth are sufficient to demonstrate effective cause.
Don’t take this for granted because facts will always vary depending on the circumstances of each individual instance.
Monitor the hiring process that each candidate goes through as a recruiter. Gather screenshots, assemble your proof, and have it at hand.
- Ensure you can provide evidence
The phrasing of the terms of business is frequently at the center of recruitment fee disputes.
However, the why and what led to the candidate being hired in the end can also be shown or disproven. An accurate timeline of the proceedings, including the introduction, interview, salary discussion, offer, and acceptance, can significantly change the course of the case.
There will be many instances where the evidence presented will unfairly tip the scales in the client’s favor. Again, to try and have as strong of a case as you can, make sure your own is in order and clear.
- Avoid back door hires
Although so-called “back door” hiring techniques can be annoying, you frequently get the advice to ignore them in order to keep a positive working relationship with this customer and for other possible hires.
The whole situation becomes even more divisive for those involved when some people even assert that recruits may merit special treatment in some circumstances.
The best method to handle non-payments when they occur can be to learn to pick your battles, be reasonable, and only take legal action in situations when you actually feel wronged.