Money for Nothing, but the Commission is Free.

Todays lesson is by Karen Mattonen from HireCentrix

I had been watching a trainwreck, as it all started on LinkedIn, and then gravitated to a few other industry forums. It’s the Same ole story! A recruiter sends in a candidate to company, the company doesn’t consider candidate; but eight months later the said candidate is hired through the efforts of another recruiter, but, funny thing is the first recruiter expects a fee.

This whole debate has had me pretty much shaking my li’l ole head in chagrin. 

Aren’t we recruiters an interesting bunch?

So, let me get this right..  some of us believe that if we submit a resume we should automatically generate a fee? Just submit any l’il biddy piece a’ paper, that’s all, do nothing else, and we will deserve a huge percentage of an individual’s salary in compensation?

Sure! Sounds Great, Wow, Seriously, sign me up!!!   If that is all there was to this job, there would be a lot of rich brothers and sisters out there.

Okay, here is the legal skinny guys.. Now, this is concise, accurate information, so pay attention, if you really want to gain that fee without an expensive lawsuit.  The lawsuit that costs so much, and rarely produces much in rewards..

First off, No contract, No fee..  and yes, your contract must spell out completely what it takes to earn that fee.

Funny how the courts are, but they seem to depend on those funky little contractual details – The Terms of Agreement. This helps remove all doubt of who owes who what, and who did what, and especially what was needed to be done to earn that fee.

After there has been full agreement of terms, in the contract, then obviously the recruiter must fulfill ALL of the obligations of the said contract to facilitate the hiring process, from start to finish.

Most importantly the courts have also decided that there are four criteria to determine if a recruiter is going to be rewarded a fee…

•  The Recruiter must have a discussion regarding the applicant with the employer (written, or verbal, and based upon the written terms of the contract)
• The Employer and Recruiter agrees to interviewing the candidate
• The Candidate agrees to the interview
• The Recruiter must help facilitate the interview process with the candidate and company

Simply Put -  If a recruiter doesn’t facilitate the hiring process, no matter how much they feel they “own” the candidate, they really didn’t earn the fee, ergo they don’t get paid.  That kinda seems obvious enough doesn’t it?

Yes, this is one of the major factors based upon the many and continual lawsuits in this arena. The courts must be able to determine that the Recruiter in question, is the motivating force behind the placements. But, again, the courts will still consider the contract and terms of agreement.

So (I stress another time) make sure your contract spells out completely what it will take to earn that fee.

Does your contract state how long you “own” the candidate?

Does it mention what Ownership means? Or even what a Referral is?

What about the steps for placement; what your agency will be responsible for, and what processes that  the client must perform to help facilitate the process.

Does it mention a time frame for payment?

Are the terms of your replacement guarantee spelled out?

Does it have a legal Jurisdiction clause?

If there should be a need to go to court,  what state, what city would have jurisdiction?

I cannot be enthusiastic enough on this area, if one does not have a written contract in place, and even if one does have one.. Document, document, document.

Document the details of conversations with clients and candidates; document when you sent the candidates; document all correspondences with the clients and candidates.

This is called a “Trail of Evidence,” and it is in YOUR favor. It helps show your actions and it shows the intent or mal-intent of the employer. Documentation reduces time and in legal terms that means it reduces Legal expenses…. and the courts really love that information.

Most importantly, makes sure you contact a lawyer In your city or State of business – preferably someone with contract and employment law background And experience.  Have them review your contract based upon your state law.

Protect yourself, protect your business, protect your investment.. and most importantly protect your business reputation.

ABOUT KAREN MATTONEN, CAC, CSP

Karen is an experienced, successful recruiter who operates her own business and is actively involved in many industry organizations and activities. After a successful tenure as a recruiter with Snelling, Karen struck out on her own, founding Advanced Career Solutions (ACS). ACS focuses on recruiting for the HVAC Industry. Karen has achieved accreditation as a California Accredited Consultant (CAC) through California Staffing Professionals. She has also gained her Certified Staffing Professional Certificate (CSP) through American Staffing Professionals. (www.americanstaffing.net)

Karen has a new and future-oriented vision of what recruiting can and should become: a profession we can be proud of for its ethical standing, professional conduct and ability to build great organizations. Her doing-well-by-doing-right philosophy is shaking up the status quo in an industry that needs to be shaken. She does this with conviction, leadership, and a distinctive voice that cries out for change.

Karen was a co-creator of the landmark webinar event – “EEOC Discrimination Debate.” This event featured senior members of the Equal Employment Opportunity Commission (EEOC) and staffing industry experts discussing and debating difficult issues about discrimination in today’s workplace environment. Company executives, hiring managers, recruiters, and human resource professionals from across the United States were invited to participate in the free Webinar and live panel discussion. Karen also served as one of the panelists on the discussion team in the March, 2006 event.

As co-host of the popular podcast “The Recruiters Lounge,”Karen discusses her frank opinions on the recruitment industry with her co-host, Jim Stroud.

Outside of the HR community, Karen Mattonen has been cited by Microsoft as a resource in how to use Microsoft Outlook as an ATS. She has also served as the Marketing and Public Relations Director for the 3^rd largest city in Utah.

Karen is also one of the founders of HireCentrix, the New Generation, Online Human Resources and Recruiting Destination – The Pulse of Regulation, Retention, Recruiting and Risk Management www.hirecentrix.com . HireCentrix, is a new company focused on the Employment industry, offering a full service resource for individuals to share and communicate, obtain current and accurate information, acquire and provide education and learning within the quickly expanding, diverse and rapidly changing Recruiting and Human Resource climate

Click here to reach Karen via email.