Clients are starting to tell us that the economy is picking up, and for the first time in years they are starting to feel optimistic. This is a good thing. I am seeing cash flows improve from debtors as well, so we will all keep our fingers crossed and hope that this positive sign continues.

One of the issues that I have seen a very large increase in is back door hires and conversion. I would be willing to bet that if I had 100 clients go back and check their candidates 25% of our clients would fine that at least one of their candidates were hired over the last 12 month . Yes this is a problem, but it is also a big opportunity if you are willing take the time and spend an afternoon checking LinkedIn I would bet that you could find $15,000 to $45,000 in placements.

The reason I bring this point up is because the economy is improving, and debtors now have more money in their bank accounts. The chances of them paying you once you bring the hiring of your candidate to their attention has greatly increased from a few years ago. Then debtors use to prefer to hold on to their money and prefer that you sue them because it bought them more time. Now with sales increasing and cash flow improving, the debtor will more likely just cut a check vs. having to spend the money on an attorney.

So what should you do if you learn that one of your temps or candidates was hired by your client? The following suggestions may be helpful:

• Pull an inventory of your paperwork. Do you have a signed agreement? Do you have an email trail? Can you show clearly that the client knew it was your candidate and if they hired that individual, then a fee would be owed?

• Reach out to the hiring company and inform the company of its unfortunate "Oversight"

• Send the company an invoice. If you have to guess what is owed because you do not know what they are paying your candidate, then take an educated guess. Use the higher side of your best guess without being out of line of course. (if the candidate's potential hire meant the company had to pay the fee, then contact the former candidate to find out what he or she is being paid)

• Send an invoice with a specific date. For example, don't have the invoice say net 10 days or due upon receipt. Have your invoice read 5 - 10 days from the day you cut the invoice. If today is March 2 then you would put Due March 12 -- 20XX. Send the invoice, and wait until the first day after the invoice was to be paid.

• Then call and send a letter giving the client 5 days more. Give an exact date, for example, March 22, 20XX, to overnight their payment. Include your FedEx account number so they can FedEx you the payment . Yes, doing that costs you money, but it is cheaper than our fee.

• Do not offer to reduce your fee for quick payment. That is a losing proposition . They will not pay, and now you have lowered the true balance that they owe you in the debtor's mind.

So when should you call me? Call me if or when one of the following two events happens:

1. Call me if the date on the last demand letter has come and gone. Call me on the following day. DO not let any more time pass.
2. Call me if at ANY point the debtor says. . "I am not paying this because of X." It does not matter what they say after X , They are now looking for loopholes, so they won't have to pay you. Do not send them all your paperwork either if they have told you they are not going to pay you. They will not look at your paperwork to see if they made a mistake. They will be looking at your paperwork to search for a way NOT to pay you

It is REALLY important not to waste any more time. Once the debtor says they are not going to pay you on a back door hire, then you need to move forward and call me at 800-452-5287 Ext 6578.

I tell you to call me because the debtor has stolen your candidate. It was not a case of "Gee! We misjudged our cash flow and we do not have the money." This problem is typically a character issue, not a financial one, so as soon as the debtor realizes that the problem is going to become a much bigger problem is when they finally will pay your invoice.

Take a few minutes now. Look up the last 25 candidates that you sent out on a job order that just went cold, you may be surprised at what you'll find.

Happy Hunting!
Wilson

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Wilson Cole is President of Adams, Evens, & Ross - a Commercial Collection Agency Exclusively for the Staffing and Recruiting Industry. Wilson can be contacted at 800-452-5287 Ext 6578 or you may email him at Wilson@aercollections.com