How to help recruitment firms get paid when a client employs a candidate directly.
As previously employed as a Credit Manager by a national recruitment company and working for many recruitment firms since setting up CMG UK, I have a vast amount of experience the recruitment sector.
Our case studies – How to help recruitment firms get paid when a client employs a candidate directly.
Backdoor hiring
The Company- International professional services firm operating in property and construction sectors
The role– Cost Consultant/ Project Manager
Our client was an approved supplier to the debtor and had access to the debtor’s portal to load new CV’s onto. Our client was bound by the debtor’s terms and conditions. Due to a change in personnel in the HR department, our client was not receiving many new roles to recruit for despite being encouraged to do so directly by a director.
After being made aware of a new role by the director, our client loaded up a CV of an ideal candidate for this role, this CV contained the candidates personal email address as well as contact telephone numbers. The CV was accepted by the debtor’s portal, therefore could not be a duplicate submitted by another recruitment firm.
The debtor said they had recruited this person though their own recruitment campaigns and refused to pay our client’s fee.
Despite a well worded letter Before Action setting out what our client would rely on in court, the debtor would not agree to make payment or negotiate therefor a County Court Claim was issued. The debtor issued a defence in response to the Claim.
The debtor’s defence stated:
- they had previously been in contact with the candidate through LinkedIn prior to our client submitting the CV on the portal.
- The role the candidate was engaged for was a different role than that they originally submitted the CV for.
Mediation was agreed by both parties. We argued the following points against the debtor’s defence:
- The only proof provided that there was a pre-existing relationship between the debtor and the candidate was an unsolicited message sent to the candidate via LinkedIn. This message was not responded to by the candidate. Our client provided the company with the candidate’s personal contact details enabling them to make direct contact and offer a position to the candidate.
- The debtor’s terms and Conditions, by stating they covered any and all persons offered to the Company contradicted their defence that our client could only claim for the specific role they submitted the CV for as the role offered to the candidate was identical but at a later time than the original role.
Settlement of our Clients invoice was agreed.
Important points
- Make sure you are fully aware of your customers terms and conditions if you agree to be bound by them.
If you are currently experiencing a situation like the above we can provide a review of your systems and processes and assist you to strengthen underperforming areas as well as coach your staff (including your sales team) to ensure you will always get paid for any back door hiring as well as promoting best practice.
We can also assist you with specific back door hiring debts as well as general credit control. Please contact us to see if we can help 03332 413 203.
