How to negotiate payment based on terms agreed within the Recruitment Industry
Negotiating Payment in the Recruitment Industry
Our case study to help recruitment firms get paid when a client employs a candidate directly. It also outlines when not to peruse the full amount in your not 100% sure of payment.
As previously employed as a Credit Manager by a national recruitment and working for many recruitment firms since setting up CMG UK I have a vast amount of experience in making sure our clients get paid.
Backdoor hiring
The Company– Law firm
The role- RTA fee earner
After discussions with the company regarding the role, several CV’s where sent to them including one for Mr John Smith (fictitious name) who also had experience as a team leader in this area.
Mr Smith was interviewed & the company were made aware of his salary expectations that were a little higher than the company had previously set.
The role was offered to Mr Smith at a much lower rate than requested and Mr Smith rejected the offer.
A month later, it was found that Mr Smith was working for the company in the position of team leader.
The company refused to pay the initial invoice at the discounted rate that had previously been agreed with the company saying Mr Smith applied directly to them in a very different role than had been requested to recruit for our client. An invoice was raised for the balance between the discounted fee and the contractual fee.
A full Letter Before Action was sent to the company detailing everything that our client would rely on should the matter go to court.
The Company then paid the original fee stating the terms were varied to a lower %. On checking our client’s initial emails to the company agreeing the % fee, the emails did not say the discount was conditional on payment being made to terms or refer to the relevant clause in their terms and conditions. Therefore, our client chose not to peruse the balance as we might not be successful in court.
Important points
- Make sure all your customer facing staff are aware of legal ramifications of how emails are worded.
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 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. contact@cmgroupuk.com
