Every recruiter knows it's bound to happen. At some point, one of your clients will hire one of your candidates without paying you. It's an age old problem in the staffing industry and many recruiters just consider it a cost of doing business.
But you may not realize just how big this problem really is. In case the title didn't give it away, these unidentified hires account for $1 billion dollars in missed placement fees every year.
How much of that money is owed to you?
Research has shown that 1 out of every 500 candidates submissions you make is hired without your knowledge. So estimate how many candidate submissions you've made in the past year, multiply that by .002, and multiply that by your average placement fee. That's how much money is owed to you.
For instance, if your agency works on 200 job openings per year, submits an average of 15 candidates per opening, and collects an average of $25,000 in fees per placement, you could be missing out on $150,000 in placement fees. The more candidates you submit, or the more you charge per placement, the higher your missed revenue becomes.
How can I find and collect what is owed to me?
To catch all your missed placements, it's important to have a system in place to check for them. Some agencies have an admin search LinkedIn and Google regularly, while others use candidate tracking software like Fee Catcher to automate the process.
Either way, it's crucial to find your missed placements as quickly as possible - 78% of missed placement fees identified within a year are collected. That's because, in the majority of cases, the client simply forgot to notify you of the hire and is happy to pay when you bring the oversight to their attention.