[ 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.


What You Should Be Working on Right Now on Collections

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.

With the pandemic sweeping the nation, here is some advice on what you should be doing regarding the collections side.

Reach Out to Your Clients

If you have been working with a company to settle their debt over a long period of time, the best thing you can do is to reach out to them. Let them know that there is still an invoice and see if they can make a good faith payment. Most companies will be able to make these as payroll protection loans are being offered by the government.

Jump on Problem Accounts

In all my experience regarding downturns, the one common aspect between them is that companies having trouble even before the downturn, are going to end up in deeper trouble and evaporating before the pandemic is over. This means that they could end up closing their doors. This is why you should be collecting the dues of problem accounts as soon as possible. Another reason why you should be quick is due to the payroll protection offered by the government.

The payroll protection loans offered by the government will help not only the companies that are going to struggle during the pandemic, but also those who already were struggling before it. Companies that were never able to take government loans will suddenly be able to take those loans. This means that they will suddenly have several months’ worth of payroll on their laps. That money isn’t going to last very long, so you have to make sure that you’re at the top of the list of people they have to pay with that money. (The original money for payroll protection is already committed, but more may become available in the future.)

Check Whether an Account is a Problem or Not

If you’re not sure whether an account is a problem or not, AER Collections is offering free credit checks on any company that is 45 days past due. This will let you check how they’re paying their bills since September 2019. If your debtor was having trouble paying bills in December, then you’re going to have a much more difficult time collecting from them.

The Economy Will Take Time to Recover

I mentioned that a large amount of money was pulled out of the economy because of the pandemic. The economy will be slow to start, and it could take around six months for the economy to resemble anything normal. It will take its toll on many businesses and those struggling will not be around by the end of the downturn.

Please call me at 800 452 5287, extension 6578 if you’d like to discuss your collection needs.


Recruiting Strategy: How to Avoid Credit Collection Mistakes

by Veronica Blatt

image of folders for past due recruiting feesToday’s guest post is courtesy of Wilson Cole from Adams, Evens & Ross, a collection agency specializing exclusively in the recruitment and staffing industry. Back in 2003 Wilson Cole, the President and Founder of Adams, Evens & Ross, was asked to produce a video series detailing the most common credit and collection mistakes that staffing and recruiting firms make when working with their clients. The finished product was a series of short, to-the-point videos called The Seven Deadly Mistakes That Staffing and Recruiting Firms Make And What You Can Do To Avoid Them. In 45 minutes you will learn what are the most common pitfalls that clients make and you will also learn a system that will help reduce your risk and make sure that you get paid in a timely manner. DISCLOSURE: Adams, Evens & Ross is an NPA Alliance Partner. NPA members receive discounted services from AER.

Have you ever had to collect a recruiting fee owed to you by a client? Ever experienced ‘temp-napping’ or a ‘back-door’ hire? Part of your recruiting strategy needs to include protecting yourself from clients who don’t pay the fees you are owed. In this video, part one of a seven-part series, Wilson discusses how including a personal guarantee in your fee agreement can help you avoid the need to resort to collections. Personal guarantees are most effective when your client is a small company that is less than three years old. If you like this video, you’ll find links to the remaining six videos on the Adams, Evens, & Ross YouTube channel.

Well-written fee agreements are an important part of any recruiting strategy. Make sure your agreements ensure you get paid for the work you do!

Please share this blog post with other recruiters you know!