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How to Make Your Fee Agreement Airtight

by Veronica Blatt

Jon-GuidiJon Guidi is the Co-Founder and Chief Revenue Officer of Hirabl, a Big Data startup known for its “Fee Catcher” reporting service. Jon founded Hirabl to ensure recruiters get paid for the hard work they do, and have the tools necessary to grow revenue at their agency. Prior to Hirabl, Jon was CEO of HealthCare Recruiters International, a leading US recruiting firm. He previously spent 10 years with Morgan Stanley and UBS in sales and trading, leaving UBS as a Senior Vice President. He lives in California with his wife and 2 daughters.

Recruiter-Client relationships often run deep.

Unfortunately bad things can happen in recruitment, like backdoor hires (when your clients hire your candidates without your knowledge).

Here are three best practices you can use to make your fee agreement airtight:

  1. Ensure you get paid no matter how your candidate is hired. Include wording that specifies that if your candidate is hired full-time, as a consultant, or as a contractor, you are still owed a fee.
  2. Extend the length of candidate ownership time as long as possible. Clearly state that if your candidate is hired within 12 months of your LAST presentation a fee is owed according to the specified pay structure.
  3. Protect yourself from out-of-control legal expenses. Ensure the debtor agrees to pay attorney and collections fees if the account is placed in collections or litigated.

Want a free audit of your contract? Email info@hirabl.com and we’ll schedule a time to audit your contract, as well as send our Fee Collection Toolkit.

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