Editor’s note: Jeff Allen has heard every employer excuse that you can imagine for not paying up — and dozens more that defy imagination. A few years ago he began documenting them in a weekly collections column. Because of the importance of collections, Fordyce will periodically reprise the most common situations he addressed. The complete collection is here.
What Client Says:
We didn’t hire, but referred the candidate to someone else.
How Client Pays:
Since the client isn’t in the placement business, you’ll be unable to show that it intended to charge a fee. The recipient will deny that it even knew who you were up to the time of the hire.
The way to get paid is to:
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- Check your fee schedule for any words that might be used to hold the client liable.
- Get the candidate to tell you how the contact with the recipient occurred.
Invoice both, and wait patiently for 30 days (no more). Then if you don’t receive payment from either the client or the recipient, ask for a written explanation of why. Do not attempt to explain your position, send any documentation, threaten or take any action until you receive that written explanation.
The biggest mistake recruiters make is to turn over their arguments and evidence too early.
The biggest fees they get is from nursing that documentation out of the parties, then having them point fingers at each other!