Fee Question? Do you get paid for performance? - RecruitingBlogs2024-03-29T01:49:06Zhttps://recruitingblogs.com/forum/topics/fee-question-do-you-get-paid?commentId=502551%3AComment%3A1180650&feed=yes&xn_auth=no@jerry I agree
I always like…tag:recruitingblogs.com,2011-04-18:502551:Comment:11810882011-04-18T13:37:15.633ZC. B. Stalling!!https://recruitingblogs.com/profile/ChrisStallings
<div class="description" id="desc_502551Comment1180651"><p>@jerry I agree</p>
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<div class="description"><p>I always like to replace, not refund</p>
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<div class="description"><p>Most of my clients pay within 10, 15 or 30 days. But I must add - I'm not working with small companies. I would be concerned if my client base were the companies where my fee became a big concern. </p>
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<p>I'd guess…</p>
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<div class="description" id="desc_502551Comment1180651"><p>@jerry I agree</p>
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<div class="description"><p>I always like to replace, not refund</p>
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<div class="description"><p>Most of my clients pay within 10, 15 or 30 days. But I must add - I'm not working with small companies. I would be concerned if my client base were the companies where my fee became a big concern. </p>
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<p>I'd guess that some recruiters work with clients where the check needs to come directly from the owners bank account - or at least feel that way. I don't work with those situations.</p>
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<p>On the overall topic - I can't really "guarantee" the success of someone I recruit. They know who they're looking for at a far greater level than I do. I simply make the connections. I am not involved in anything beyond that point - so don't really see how I can or should be held accountable. My performance is done the day they start. </p>
</div> How about clients that won't…tag:recruitingblogs.com,2011-04-17:502551:Comment:11816052011-04-17T20:35:01.001ZJosh Slimmerhttps://recruitingblogs.com/profile/jerichohr
How about clients that won't pay at all? Has anyone ever used a collection agency for a client that won't pay? If so, who would you refer?
How about clients that won't pay at all? Has anyone ever used a collection agency for a client that won't pay? If so, who would you refer? I have this in my agreements,…tag:recruitingblogs.com,2011-04-15:502551:Comment:11806522011-04-15T14:29:17.494ZEdwin Ostrandhttps://recruitingblogs.com/profile/EdwinOstrand
<p>I have this in my agreements, and have yet to have to replace anyone in well over a decade.</p>
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<p>As always, I stand behind my work and guarantee the successful placement of the executive introduced and hired by [FIRM NAME] for twelve months from his/hers initial date of hire. This means that I will conduct the search to replace the individual at no additional fee, charging expenses only. Conditions under which the guarantee will not be applicable include position or…</p>
<p>I have this in my agreements, and have yet to have to replace anyone in well over a decade.</p>
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<p>As always, I stand behind my work and guarantee the successful placement of the executive introduced and hired by [FIRM NAME] for twelve months from his/hers initial date of hire. This means that I will conduct the search to replace the individual at no additional fee, charging expenses only. Conditions under which the guarantee will not be applicable include position or responsibility modification due to reorganization, or change resulting from acquisition, merger, ownership transfer, or change in the business direction.</p> @ Michael Thanks for the comm…tag:recruitingblogs.com,2011-04-15:502551:Comment:11803502011-04-15T14:27:50.341ZCharlotte Byndashttps://recruitingblogs.com/profile/CharlotteByndas129
@ Michael Thanks for the comment. Sorry I am not familiar with Rec2Rec but it sounds like you worked with a client under these terms and they ended up not paying you. That is the the RISK I think every recruiter would be taking if they worked with clients this way.
@ Michael Thanks for the comment. Sorry I am not familiar with Rec2Rec but it sounds like you worked with a client under these terms and they ended up not paying you. That is the the RISK I think every recruiter would be taking if they worked with clients this way. @ Jerry Yes this is so true!…tag:recruitingblogs.com,2011-04-15:502551:Comment:11803492011-04-15T14:24:24.887ZCharlotte Byndashttps://recruitingblogs.com/profile/CharlotteByndas129
<p>@ Jerry Yes this is so true! But...... I have talked to so many senior level managers that do not get that very fact! I brought this topic up because I have seen quite a few accounts open up using this strategy with those types of clients, and it has lead to a very productive/lucrative relationship with those clients. </p>
<p>I framed this question with the "pay for performance" thought not because I think that is what I am doing, but rather because that is what the client thinks they are…</p>
<p>@ Jerry Yes this is so true! But...... I have talked to so many senior level managers that do not get that very fact! I brought this topic up because I have seen quite a few accounts open up using this strategy with those types of clients, and it has lead to a very productive/lucrative relationship with those clients. </p>
<p>I framed this question with the "pay for performance" thought not because I think that is what I am doing, but rather because that is what the client thinks they are getting. I am never confused about what value it is that a recruiter is bringing to the table, and nothing makes me happier then when results are produced for a client and then they see it too! </p>
<p> </p> Most of my clients pay within…tag:recruitingblogs.com,2011-04-15:502551:Comment:11806512011-04-15T14:13:17.730ZJerry Albrighthttps://recruitingblogs.com/profile/JerryAlbright
<p>Most of my clients pay within 10, 15 or 30 days. But I must add - I'm not working with small companies. I would be concerned if my client base were the companies where my fee became a big concern. </p>
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<p>I'd guess that some recruiters work with clients where the check needs to come directly from the owners bank account - or at least feel that way. I don't work with those situations.</p>
<p> </p>
<p>On the overall topic - I can't really "guarantee" the success of someone I…</p>
<p>Most of my clients pay within 10, 15 or 30 days. But I must add - I'm not working with small companies. I would be concerned if my client base were the companies where my fee became a big concern. </p>
<p> </p>
<p>I'd guess that some recruiters work with clients where the check needs to come directly from the owners bank account - or at least feel that way. I don't work with those situations.</p>
<p> </p>
<p>On the overall topic - I can't really "guarantee" the success of someone I recruit. They know who they're looking for at a far greater level than I do. I simply make the connections. I am not involved in anything beyond that point - so don't really see how I can or should be held accountable. My performance is done the day they start. </p> @ Jerry Thanks for the feedba…tag:recruitingblogs.com,2011-04-15:502551:Comment:11806502011-04-15T14:06:47.176ZCharlotte Byndashttps://recruitingblogs.com/profile/CharlotteByndas129
@ Jerry Thanks for the feedback on how you structure your contracts. I am wondering if you don't mind sharing, do most of your clients pay you at 30 days or do most pay at start date?
@ Jerry Thanks for the feedback on how you structure your contracts. I am wondering if you don't mind sharing, do most of your clients pay you at 30 days or do most pay at start date? @Bill Thanks for the comment…tag:recruitingblogs.com,2011-04-15:502551:Comment:11804732011-04-15T14:02:42.801ZCharlotte Byndashttps://recruitingblogs.com/profile/CharlotteByndas129
<p>@Bill Thanks for the comments! I can relate to where you are coming from and have used the contract to hire method with some of my clients and I can appreciate how you can then end up with a larger fee that is paid out over time. </p>
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<p>I have always thought that one of the best things about being in this crazy business of ours is that there are many ways to structure how you work with your clients. </p>
<p>@Bill Thanks for the comments! I can relate to where you are coming from and have used the contract to hire method with some of my clients and I can appreciate how you can then end up with a larger fee that is paid out over time. </p>
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<p>I have always thought that one of the best things about being in this crazy business of ours is that there are many ways to structure how you work with your clients. </p>
Having been in recruiting s…tag:recruitingblogs.com,2011-04-14:502551:Comment:11804252011-04-14T21:58:18.898ZMichael Webbhttps://recruitingblogs.com/profile/MichaelWebb
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<p>Having been in recruiting since 1979, I felt I probably had a fair idea of what makes a good recruiter. Consequently, I fell into Rec2Rec.</p>
<p>Fees are always an issue in any business, clients will never see it as a value for money proposition. They see value, but not value for money. Worse, is the guarantee. This creates so much angst, I decided to get rid of it altogether. So I structured my fee this way, no guarantee, half fee after 6 weeks, the other half after 6 months, but…</p>
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<p>Having been in recruiting since 1979, I felt I probably had a fair idea of what makes a good recruiter. Consequently, I fell into Rec2Rec.</p>
<p>Fees are always an issue in any business, clients will never see it as a value for money proposition. They see value, but not value for money. Worse, is the guarantee. This creates so much angst, I decided to get rid of it altogether. So I structured my fee this way, no guarantee, half fee after 6 weeks, the other half after 6 months, but only payable if the candidate still employed. This was based on the premise that a good manager has a pretty good idea a Recruiter will work out within 6 weeks and if the Recruiter is still there after 6 months they must be working out ok. (Interested to hear comments on that.)</p>
<p>With one client, all was going well, both parties happy and got paid after 6weeks. Sent the second part invoice after 6 months, they refused to pay. The Recruiter was not working out. Still employed though, but not working out. And this is in the Rec2Rec business.</p>
<p> </p> You're not getting paid for p…tag:recruitingblogs.com,2011-04-14:502551:Comment:11804192011-04-14T21:17:07.698Zbill martineauhttps://recruitingblogs.com/profile/billmartineau
<p>You're not getting paid for performance you're financing their fee and losing money in the transaction.</p>
<p>Getting paid for performance implies that someone grades out the candidate over time and that based on those grades you get more or less money.</p>
<p>Example:</p>
<p>50% (total fee) upon arrival and 30 and 90 days in we grade them out. A=30% B=25% and C=20% (of total fee). this would hold the prospect of getting a premium if they are graded at an "A" making the standard fee at a…</p>
<p>You're not getting paid for performance you're financing their fee and losing money in the transaction.</p>
<p>Getting paid for performance implies that someone grades out the candidate over time and that based on those grades you get more or less money.</p>
<p>Example:</p>
<p>50% (total fee) upon arrival and 30 and 90 days in we grade them out. A=30% B=25% and C=20% (of total fee). this would hold the prospect of getting a premium if they are graded at an "A" making the standard fee at a "B" and losing some money. The other issue is who grades and how would that be determined? Personally that sounds like a lot of problems.</p>
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<p>Now my company does do contract to perm conversions (think rent to own), but we make a premium over our standard fee since we (and the candidate) run the risk of it not coming to fruition and for also providing the financing for their fee.</p>