[ Collection Specialist ] Why Recruitment Agencies Need It

by Veronica Blatt

Today’s guest blogger is Wilson Cole. He is the CEO of BackdoorHires.com and Adams, Evens & Ross, the nation’s largest credit and collections agency designed exclusively for the staffing and recruiting industry. In 2008 he was inducted into INC Magazine’s, “INC 500” for being the CEO of Adams, Evens & Ross, the 307th fastest-growing privately held company in America. Adams, Evens, & Ross has helped more than 3,000 staffing and recruiting firms recover more than $1 billion in past-due debt and is an NPAworldwide Endorsed Program.

More times than not, a client will pay the staffing agency after they place an employee without any issues. Staffing agencies do, or really should do, most of the hard work in the beginning by drawing up a contract on how much the client will pay before entering into a business relationship. After a placement has been made, the client will pay the agreed amount and both companies will move on in their relationship. A collection specialist will oversee these transactions just as an added precaution to make sure there are no issues. As I said, more times than not a collection specialist will really just oversee and manage payments. The reason it is necessary to have a specifically trained collection specialist in your agency is for the few times that a client does not follow the agreed process, and this can present in a number of ways. You need to be prepared for every possibility.

A side note: an important reason you want to have a collection specialist on your staff is because this person will be handling some more sensitive problems for your company. This needs to be someone that you can trust to protect your company which is why you should be careful in choosing your collection specialist. If at all possible, do not contract out to collection specialists. There are very trustworthy collection firms out there, but if you keep one on your staff it allows you to choose and train them to fit your company specifically.

One of the first ways that a collection specialist can be a necessary asset to your recruitment agency is when a client rejects one of your candidates then hires them outside of your recommendation. This is what is referred to as a backdoor hire. The reason you stay in business is because clients come to you to provide them with the best staff for their company. If they reject your appointment and then hire the person on their own, they can avoid paying you the finder fee that you are guaranteed through your contract. You need someone who has dedicated time and skills to working with other companies on collecting what they owe you. A collection specialist has the training and ability to handle these situations along with your legal team. Another way that a collection specialist can help your company is in a situation where another company has an issue with an employee you place with them, and generally these issues are beyond your control or scope of knowledge, and they refuse to pay for your services. There are many reasons that an employee might not fit after they are placed. There can be a variety of behavioral issues that cause them to not gel with the team or the environment of the company. Unless it is stated in the initial contract that they do not have to pay if the placement does not end up as a good match, the company still has to pay you for your work, and you will start over again with a new candidate. This is not a fight that you want to go into on your own, so a collection specialist can be a huge help as you turn it over to them and let them handle the situation for you. A good collection specialist will work with the client and try to resolve the problem amicably, but they do have the experience and skills to collect in a non-amicable situation. Particularly in these situations which can be delicate due to the behavior of an employee that put you there, you need a collection specialist who can navigate and settle it with hopefully minimal trouble for them and your company.

One more way that recruitment agencies need a collection specialist is when a client sues your company in order to prevent paying what you are due. There are a thousand reasons that they can come up with to sue you and most of the time they are hoping you will settle and just avoid the situation entirely. DO NOT FALL FOR THIS TRICK! A collection specialist can work with your legal team or whoever is representing you to make sure that the lawsuit does not stick and that you get what is due.

A collection specialist can be a great asset to your recruiting agency. You need staff to carry you through the entire transaction with each of your clients and a collection specialist is going to be your closer. Take our advice and recruit one for your company so you can be the very best staffing agency out there.


Backdoor Hires: We Already Knew the Candidate

by Veronica Blatt

Today’s guest blogger is Wilson Cole. He is the CEO of BackdoorHires.com and Adams, Evens & Ross, the nation’s largest credit and collection agency designed exclusively for the staffing and recruiting industry. In 2008 he was inducted into INC Magazine’s, “INC 500” for being the CEO of Adams, Evens & Ross, the 307th fastest-growing privately held company in America. Adams, Evens, & Ross has helped more than 3,000 staffing and recruiting firms recover more than $1 billion in past-due debt and is an NPAworldwide Endorsed Program.

“We already knew the candidate.”

The most common excuse we hear from debtors that do not want to pay a recruitment fee is, “We already knew the candidate.” In most cases, these types of backdoor hires are the easiest to collect. The biggest hurdle for us to jump is to help the debtor understand that knowing the candidate and knowing they are looking for a job are two very different things. We also have the backdrop that the owner of the company is MAD; they are not really angry with the recruiter, but they are mad at either themselves or their HR manager because they did not have a better pulse on what candidates were actually available. Read the rest of this entry »