The one thing that has surprised me more than the sheer volume of Backdoor Hires is the very weak and defeatist attitude and response from so many recruiters. The real issue has not been getting the word out that Backdoor Hires are happening. The real issue has been trying to make the recruiting industry Realize that it can collect on these fees. I spend so much time walking clients through the process and even more time convincing them that a fee is owed. I am not talking about a little chump change in your sofa; we are talking about millions of dollars every year that we collect for our clients. The ironic part of this issue is I spend almost as much time educating our clients that a fee is owed as I do collecting the debt for them.
This chapter will outline the questions that we are asked from recruiters and the reason they initially feel they may not be owed a fee. We will break down each of these circumstances and give you outcomes and case studies so that you will have a full understanding of what to expect when you come across a Backdoor Hire. The good news for all of our clients and future clients is we will successfully collect on these accounts about 80% of the time without getting our forwarding attorneys involved. Since we have been around for 25 years and have seen this problem to some degree for the entirety, we can typically walk the debtor and their attorney through the process and show them that it will end poorly for them if the situation escalates.
Before we outline the different excuses and reasons that debtors feel they do not owe you, please keep in mind 50% of the Backdoor Hires will never get to this point. You will often locate the Backdoor Hire and bring it to your client’s attention, and they will write a check. It really is that simple. I do have a word of caution to all of our recruiters because I do not want you to misspeak… or say something that will compromise your ability to collect on your fees. Keep in mind, 50% of these outlines will not apply. PLEASE, do not offer to discount your fee in an effort to resolve the issue unless you are willing to accept that amount because that is the most you will get from your debtor even if you turn them over for collections and in some cases, sue them. I cannot tell you how many great cases have been compromised by our clients saying something or offering something to the debtor before we get involved. If you offer to discount or “forgive the debtor” for a future search, then you have reduced your chances to collect the funds that are owed.
I speak to many clients and future clients every week and many of you know that I will typically say, “Have you tried this or have you tried that?” If the client says no, “I have not done that,” then I will say, “Try that first then call me if they do not pay.” I realize that I have a financial gain if you place the account, so in an effort to put our clients’ needs first I have a checklist that I always go through with new clients and prospects. The “Litmus Test” that I use is when the debtor says, “I am not going to pay you because,” and the “because” is not relevant. Once they tell you that, you need to end the conversation and either call me or get your attorney involved. Another “Litmus Test” test I use is when the debtor’s attorney calls you and asks for the paperwork and supporting documentation.
The reason you should not interact with the attorney is because they are well educated and highly skilled in getting their clients out of paying debts. Please keep in mind they are not calling you to help get you paid; they are calling you so they can start building up a defense on how not to pay you. At that point, you need to either call me or your attorney to deal with the debtor’s attorney.
These outlines and case studies will cover the other 50% of the Backdoor Hires that are ignoring you, have said that they will not pay you “because”, or their attorney has contacted you either to say that their client will not pay or to request your documentation.
Over the next few chapters, we will go into great detail on the NINE MOST COMMON EXCUSES Debtors will try to use to avoid paying a fee on back door hire.
Reason Number One: We already knew the candidate, they work for a
Competitor, VP used to work with them, etc.
Reason Number Two: We already had the candidate’s resume.
Reason Number Three: We did not sign an agreement.
Reason Number Four: We paid another recruiter.
Reason Number Five: Yes, we hired the candidate, but they did not last 90
Reason Number Six: The candidate contacted us on their own.
Reason Number Seven: We did not hire them as an employee. We hired
them as a consultant.
Reason Number Eight: We hired them for another position.
Reason Number Nine: Yes, we hired them, but other candidates did not last as long as they should have so we are taking them as a credit.
There are other reasons or variations of these reasons that we hear, but these are the most common and will cover 95% of the Backdoor Hire cases that we process for our client. If you have heard these reasons, then you are owed a fee and you need to contact me at 800-452-5287 Ext 6578. If your debtor gives you a reason that is not covered in the next chapters, do not lose hope because it does not mean you are not owed a fee; it simply means that we could not cover all reasons due to space limitation in this book. So please call me at 800-452-5287 Ext 6578, and let us discuss the specifics of your issue.
Now, let us start drilling down on each reason listed, so you have a full
Understanding that you are owed a fee and what the debtor or their attorney is telling you in most cases is irrelevant.