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What Client Says:
“We hired the candidate at a lower starting salary.”
How Client Pays:
The victim of this is the salesperson placer. Since the candidate’s base rate is the only promised (“guaranteed”) compensation, the client argues that commissions aren’t included in the fee computation.
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Guide: Practical Tips for Remote Hiring
The variations are endless, ranging from actually paying the candidate less at the beginning (often with a wink and a promise) to excluding the value of perks (up to 40%). For this reason, vigilance plus verbiage is necessary.
Vigilance is your responsibility. Verbiage is mine. Here’s what I recommend:
The estimated gross compensation includes projected commissions, bonuses, incentives, and perquisites. It shall be estimated at not less than the amount earned by the candidate in his last position.
If that scares you, then start placing at a fixed fee.
Otherwise, you’re a visible victim.