How to deal with a client who refuses to pay the placement fees?? - RecruitingBlogs2024-03-28T16:24:18Zhttps://recruitingblogs.com/forum/topics/how-to-deal-with-a-client-who?commentId=502551%3AComment%3A466347&feed=yes&xn_auth=noHello everyone... It was grea…tag:recruitingblogs.com,2008-12-31:502551:Comment:4663472008-12-31T19:58:28.659ZJolly Nibuhttps://recruitingblogs.com/profile/JNibu
Hello everyone... It was great to receive so many expert advice from you all... Thanks and I really appreciate it..<br />
Now... this issue is almost getting settled just because of the hiring manager's efforts.. I will b getting the placement fees and more than that I have been retained for recruitment and that's the best part of it... Definitely will be having the proper signed agreement before 2009 starts!<br />
<br />
Wish you all a Very Happy New Year.. Wish you the best of everything in the year 2009...
Hello everyone... It was great to receive so many expert advice from you all... Thanks and I really appreciate it..<br />
Now... this issue is almost getting settled just because of the hiring manager's efforts.. I will b getting the placement fees and more than that I have been retained for recruitment and that's the best part of it... Definitely will be having the proper signed agreement before 2009 starts!<br />
<br />
Wish you all a Very Happy New Year.. Wish you the best of everything in the year 2009... My advice is to call & em…tag:recruitingblogs.com,2008-12-31:502551:Comment:4656112008-12-31T06:27:34.221ZHarry Doughertyhttps://recruitingblogs.com/profile/HarryDougherty
My advice is to call & email the company’s hierarchy from the top-down. Let them know, if they don’t already, of the circumstances and your intent to pursue your placement fee.<br />
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Next, send a certified letter with your invoice and documentation of your actions that led to the candidate being hired.<br />
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Lastly, if they still refuse to pay, sue them.<br />
<br />
To file in small claims (typically less than $10k) cost around $50 bucks…and $250 if it’s more. Having them served with court documents maybe…
My advice is to call & email the company’s hierarchy from the top-down. Let them know, if they don’t already, of the circumstances and your intent to pursue your placement fee.<br />
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Next, send a certified letter with your invoice and documentation of your actions that led to the candidate being hired.<br />
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Lastly, if they still refuse to pay, sue them.<br />
<br />
To file in small claims (typically less than $10k) cost around $50 bucks…and $250 if it’s more. Having them served with court documents maybe another $50. Suing their asses…Priceless.<br />
<br />
Most companies will settle. Craigslist has a law forum that might be worth asking this question on too and getting some pro bono help.<br />
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Good luck! When the dust clears please let us know how you made out. You have learned a valuable l…tag:recruitingblogs.com,2008-12-30:502551:Comment:4652652008-12-30T22:25:22.716ZMelissa Holmeshttps://recruitingblogs.com/profile/MelissaHolmes
You have learned a valuable lesson. To attempt to save this, my advice would be to talk to the contract decision maker and not just the hiring manager. Fall on your sword because there are things you did not take care of before submitting the candidate (such as determining who was eligible from their perspective for you to submit). I don't think they were trying to take advantage of you. You were not dealing with the decision maker on the contract as you should have been. I think you have…
You have learned a valuable lesson. To attempt to save this, my advice would be to talk to the contract decision maker and not just the hiring manager. Fall on your sword because there are things you did not take care of before submitting the candidate (such as determining who was eligible from their perspective for you to submit). I don't think they were trying to take advantage of you. You were not dealing with the decision maker on the contract as you should have been. I think you have learned the risks of working without a contract. . I wish you a more successful 2009! Thanks Jeff..
Jeff Weidner s…tag:recruitingblogs.com,2008-12-30:502551:Comment:4650952008-12-30T21:11:20.206ZJolly Nibuhttps://recruitingblogs.com/profile/JNibu
Thanks Jeff..<br />
<br />
<cite>Jeff Weidner said:</cite><blockquote cite="http://www.recruitingblogs.com/forum/topics/how-to-deal-with-a-client-who?page=2&commentId=502551%3AComment%3A465084&x=1#502551Comment465084"><div>As a last resort call Mike Biven or Stephen Schwartz<br></br>800-318-6494<br></br>michaelbiven@coface-trm.com<br></br><br></br>Mike is a Collection Rep for Coface Collections<br></br>We have used them in the past on occassion and they are very nice to deal with it when comes to getting paid. They…</div>
</blockquote>
Thanks Jeff..<br />
<br />
<cite>Jeff Weidner said:</cite><blockquote cite="http://www.recruitingblogs.com/forum/topics/how-to-deal-with-a-client-who?page=2&commentId=502551%3AComment%3A465084&x=1#502551Comment465084"><div>As a last resort call Mike Biven or Stephen Schwartz<br/>800-318-6494<br/>michaelbiven@coface-trm.com<br/><br/>Mike is a Collection Rep for Coface Collections<br/>We have used them in the past on occassion and they are very nice to deal with it when comes to getting paid. They do't harrass or threaten people and have always gotten me paid when I thought the account was lost. Granted we've only used them twice in 14 yrs but they did their job both times. Amazingly both clients respected the fact that we didn't send them to some pitbull agency and were very appologetic for not being able to pay their bill in a timely manner.<br/><br/>Not having a signed Agreement might be a wrinkle but if you have emails or faxes or anything saying that they wanted you to work the project then you might be able to collect.<br/><br/>Understand, this "New client" will most likely turn into a former client if you send them to collections but either way do you really want to do business with someone/ some company that doesn't value your contributions?<br/><br/>Jeff Weidner<br/>HTC Research Corp</div>
</blockquote> As a last resort call Mike Bi…tag:recruitingblogs.com,2008-12-30:502551:Comment:4650842008-12-30T21:09:16.408ZJeff Weidnerhttps://recruitingblogs.com/profile/JeffWeidner
As a last resort call Mike Biven or Stephen Schwartz<br />
800-318-6494<br />
michaelbiven@coface-trm.com<br />
<br />
Mike is a Collection Rep for Coface Collections<br />
We have used them in the past on occassion and they are very nice to deal with it when comes to getting paid. They do't harrass or threaten people and have always gotten me paid when I thought the account was lost. Granted we've only used them twice in 14 yrs but they did their job both times. Amazingly both clients respected the fact that we didn't send…
As a last resort call Mike Biven or Stephen Schwartz<br />
800-318-6494<br />
michaelbiven@coface-trm.com<br />
<br />
Mike is a Collection Rep for Coface Collections<br />
We have used them in the past on occassion and they are very nice to deal with it when comes to getting paid. They do't harrass or threaten people and have always gotten me paid when I thought the account was lost. Granted we've only used them twice in 14 yrs but they did their job both times. Amazingly both clients respected the fact that we didn't send them to some pitbull agency and were very appologetic for not being able to pay their bill in a timely manner.<br />
<br />
Not having a signed Agreement might be a wrinkle but if you have emails or faxes or anything saying that they wanted you to work the project then you might be able to collect.<br />
<br />
Understand, this "New client" will most likely turn into a former client if you send them to collections but either way do you really want to do business with someone/ some company that doesn't value your contributions?<br />
<br />
Jeff Weidner<br />
HTC Research Corp I agree with Jerry. Keep the…tag:recruitingblogs.com,2008-12-30:502551:Comment:4648922008-12-30T19:49:08.861Zpam claughtonhttps://recruitingblogs.com/profile/pamclaughton
I agree with Jerry. Keep the candidate out of it. I still think you have a chance of salvaging this, if you proceed professionally. The hiring manager is on your side it sounds like, so keep communicating with him. Make it clear to hr that it's irrelevant at this point if they already have the candidate's resume. You are too far along in the process. If they had informed you before bringing your candidate in, it might be a different story.<br />
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Yes, you don't have a signed fee agreement. You know…
I agree with Jerry. Keep the candidate out of it. I still think you have a chance of salvaging this, if you proceed professionally. The hiring manager is on your side it sounds like, so keep communicating with him. Make it clear to hr that it's irrelevant at this point if they already have the candidate's resume. You are too far along in the process. If they had informed you before bringing your candidate in, it might be a different story.<br />
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Yes, you don't have a signed fee agreement. You know that was a mistake and it won't happen again. But, you did have a verbal discussion with the hiring manager and do have emails discussing and agreeing to your fee, correct? Proceed along with this candidate and hiring manager in an assumptive manner that you are due and will be paid a fee.<br />
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You have nothing to lose and everything to gain by continuing along to close the placement. If you throw a fit now, you will lose the placement and client.<br />
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Good luck!<br />
~Pam<br />
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<cite>Jerry Albright said:</cite><blockquote cite="http://www.recruitingblogs.com/forum/topics/how-to-deal-with-a-client-who?x=1&id=502551%3ATopic%3A462483&page=1#502551Comment464502"><div>For some reason I want to disagree with the general concensus here on getting the candidate involved.<br/><br/>This is between you and the company. (I refrain from using the world "client" so loosely in these situations.) Threatening them with turning them into a source company, badmouthing them, etc. is not going to get them to turn their ship around. There is no value (other than making yourself feel better for the moment) to any of that.<br/><br/>Informing the candidate will do nothing for your fee situation. The company will most certainly convince the candidate you are somehow at fault - and that will add no value. You will only look like a sore loser.<br/><br/>Very simply put - you have no leverage here. You've already provided the services. The candidate has accepted.<br/><br/>Send the invoice including all documentation. Follow up with them letting them know you expect to be paid. When/if they do not pay turn it over to a collections attorney who will work on contingency.<br/><br/>Take the high ground. Take the hit. Move on. (After sending the invoice.......)</div>
</blockquote> Thanks for all your responses…tag:recruitingblogs.com,2008-12-30:502551:Comment:4647742008-12-30T19:18:56.221ZJolly Nibuhttps://recruitingblogs.com/profile/JNibu
Thanks for all your responses..... I have to wait until January 5th as the hiring manager is working on solving this issue and I feel I should definitely give him time... and will surely let you guys know how it goes... I appreciate all your help... Pls feel free to add more comments if any....
Thanks for all your responses..... I have to wait until January 5th as the hiring manager is working on solving this issue and I feel I should definitely give him time... and will surely let you guys know how it goes... I appreciate all your help... Pls feel free to add more comments if any.... For some reason I want to dis…tag:recruitingblogs.com,2008-12-30:502551:Comment:4645022008-12-30T18:08:11.148ZJerry Albrighthttps://recruitingblogs.com/profile/JerryAlbright
For some reason I want to disagree with the general concensus here on getting the candidate involved.<br />
<br />
This is between you and the company. (I refrain from using the world "client" so loosely in these situations.) Threatening them with turning them into a source company, badmouthing them, etc. is not going to get them to turn their ship around. There is no value (other than making yourself feel better for the moment) to any of that.<br />
<br />
Informing the candidate will do nothing for your fee…
For some reason I want to disagree with the general concensus here on getting the candidate involved.<br />
<br />
This is between you and the company. (I refrain from using the world "client" so loosely in these situations.) Threatening them with turning them into a source company, badmouthing them, etc. is not going to get them to turn their ship around. There is no value (other than making yourself feel better for the moment) to any of that.<br />
<br />
Informing the candidate will do nothing for your fee situation. The company will most certainly convince the candidate you are somehow at fault - and that will add no value. You will only look like a sore loser.<br />
<br />
Very simply put - you have no leverage here. You've already provided the services. The candidate has accepted.<br />
<br />
Send the invoice including all documentation. Follow up with them letting them know you expect to be paid. When/if they do not pay turn it over to a collections attorney who will work on contingency.<br />
<br />
Take the high ground. Take the hit. Move on. (After sending the invoice.......) Hi J.nibu,
Sorry to hear abou…tag:recruitingblogs.com,2008-12-30:502551:Comment:4644452008-12-30T17:43:41.800ZKarinahttps://recruitingblogs.com/profile/Karina7
Hi J.nibu,<br />
Sorry to hear about the situation you are in. I agree with what has been said so far. I agree that you should touch base with your candidate on this situation but before doing so, inform the client, in a non-threatening way (if you both have not gotten to a hostile place yet with this issue) that you will be informing this candidate of the current situation and that could cost them a hire. They know they are pulling one over on you since they never knew about this candidate's resume…
Hi J.nibu,<br />
Sorry to hear about the situation you are in. I agree with what has been said so far. I agree that you should touch base with your candidate on this situation but before doing so, inform the client, in a non-threatening way (if you both have not gotten to a hostile place yet with this issue) that you will be informing this candidate of the current situation and that could cost them a hire. They know they are pulling one over on you since they never knew about this candidate's resume being submitted beforehand by an internal employee. They have spent time, as well as you have, in qualifying this candidate and moving on an offer. They are not going to want to lose that. If they care about hiring this person, they will have a reaction to you having to inform your client(candidate) of this situation. It is the professional thing to do as you are working on their behalf to secure them a position with a good company. The client will at least realize then that you will not go away quietly by letting them steal your candidate.<br />
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Best of luck, do let us know the outcome.<br />
<br />
Karina Manriquez<br />
Recruiting Specialist<br />
Resourceful Recruiting<br />
T: 617-297-2232<br />
karina@resourcefulrecruiting.com<br />
<a href="http://www.resourcefulrecruiting.com">www.resourcefulrecruiting.com</a> Unfortunately, this is one of…tag:recruitingblogs.com,2008-12-30:502551:Comment:4641742008-12-30T16:19:44.424ZJohn G. Selfhttps://recruitingblogs.com/profile/JohnGSelf
Unfortunately, this is one of the biggest problems on the contingent fee side. I have heard countless stories.<br />
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Without a letter of engagement or contract, you are on very soft ground. Now, if you had a signed agreement, there is established court precedent. Hopwever, there are clients who will still play the game of "we had that name already," your agreement notwithstanding. In that instance, courts will typically side with the recruiter if you can show that had it not been for your efforts,…
Unfortunately, this is one of the biggest problems on the contingent fee side. I have heard countless stories.<br />
<br />
Without a letter of engagement or contract, you are on very soft ground. Now, if you had a signed agreement, there is established court precedent. Hopwever, there are clients who will still play the game of "we had that name already," your agreement notwithstanding. In that instance, courts will typically side with the recruiter if you can show that had it not been for your efforts, the employer would not have hired the candidate for that position.<br />
<br />
In this case, you can argue that you had a verbal agreement -- a verbal contract -- and you honored your agreement. You can push them and probably get paid some amount of money. You can probably even talk to their corporate compliance department or service, assuming they have one. However, lesson two is to be very careful with HR executives. Far too many are less than ethical on these matters and hell hath no fury than an HR executive who is forced into a payment. They DO talk at their little meetings... And you can kiss that client goodbye. That is why I prefer retained search.