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Recruitment Charges

Summary of postings

Recruitment Charges Sarah Maddox 4 Oct 05
Re: Recruitment ChargesJulie Hiersche4 Oct 05
Re: Recruitment ChargesPeter Hetherington7 Oct 05
Re: Recruitment ChargesKerry Huntley5 Oct 05
Re: Recruitment ChargesMatthew Davis1 Feb 06
Re: Recruitment ChargesPeter23 Nov 06
Re: Recruitment Chargesmark9 Mar 07
Re: Recruitment Chargeszoe smith12 Mar 07

Details of postings

Recruitment Charges Sarah Maddox 04/10/2005 16:32
Has anyone had any experience of the following?
We recruited a Sales Manager through a recruitment agent to start work on 10th October. Middle of September, he said that he wouldn' t join after all. The agent has still invoiced £5,800 as the terms and conditions stated that on engagement, the fee was due. The term 'engagement' we believed to be the date the candidate joined the Company but it appears to be the date the offer letter was sent.
It seems totally unacceptable to pay for someone who has never joined and it begs the question, 'do the agents then just sent someone along for the 'offer' stage with no intention of that person ever joining and the candidate then earns a hefty fee.

Any comment/advice would be much appreciated.
 
+ Re: Recruitment Charges Julie Hiersche 04/10/2005 16:53
Sarah,
Check your contract / agreement with the agency. Usually, you should expect to have an agreement that they will replace the new hire free of charge if they leave within the probationary period or prove to be unsuitable for the role. If you do not have this in place, then I would suggest reasoning with them in the interests of maintaining a longer term relationship with you.
If I were you, I would refuse to pay the bill until they deliver a suitable new employee anyway, as they have not completed their job. It would be interesting to see if anyone from the agency side has a view on this.
++ Re: Recruitment Charges Peter Hetherington 07/10/2005 15:30
Sarah,

I believe agency staff are not supposed to post here, but in the interest of putting forward a view from the agency side and hopefully help you in your negotiations, I thought I would bend the rules.

I come from a large professional services recruitment firm (personally specialising in HR professionals) where we are very aware of the need to deliver a value added service. My job is to find and introduce the best person for a client's role, take the candidate through to offer stage and then to ensure my client's satisfaction throughout that candidate's probationary period. It is the industry norm that a scaled rebate period would be in effect should the candidate leave (for whatever reason) before the end of that period so it my job to make sure both the client and candidate are content.

I am horrified to hear that some agencies believe they are due a fee before a candidate has even started with an organisation! If that candidate decides not to join an organisation, chances are the agency has not found the right match in the first place, but regardless of this, the agency has not achieved its mission. We do not issue an invoice until the first day a candidate starts work.

The only scenario when a client might pay before a candidate has started is when a client 'retains' a consultant to source for their role. In this instance, a number of milestones are agreed where a fee may be payable: initial shortlist delivered for example, and the main portion of the total fee is not paid until the candidate is placed and starts.

If you would like more information on retained assignments or recruitment best practise do get in touch: phetherington@fss.co.uk
++ Re: Recruitment Charges Kerry Huntley 05/10/2005 15:13
Sarah,

I used to work within an Agency and somewhere within their terms and conditions should be a clause stating that should the candidate not work out within x period of time they will reimberse you a percentage of the fee, so for example, should the candidate leave in the first week you are entitled to 100% back. I would seriously despute this with the agency. The fees they charge are for the service they give, this agency has not provided you with an adequate service. The fee also incorporates the advertising, administration and their time which to my mind does not equate to £5,800!!.

Please remember Sarah, that YOU are the customer and Agencies should not hold you over a barrel in relation to fees. Please also remember that there are literally thousands of agencies out there some good, some bad. You don't have to stand for this sort of treatment and I'm sure once you put your foot down the agency will drop the invoice rather than loose your business.

Best of luck.

Kerry
+++ Re: Recruitment Charges Matthew Davis 01/02/2006 15:27
The recruitment agent will have had a guarantee eg refill FOC or rebait. I guess no firm wants to work for nothing as they provide an introduction service not a guarantee to start. Nobody would send a candidate out to be sent an offer and then turn it down, that is rediculous. The employer is to blaim as they cannot of sold the position to the candidate effectively! Try asking the agent to find a replacement at no charge, they will be resonable if you are.
++++ Re: Recruitment Charges Peter 23/11/2006 10:21

Sarah,


Firstly you know which agent not to use again ! and possibly their contract had in very small print their definition of "engagement". If their is no definition then it is whatever the reader believes the contract to say. For future reference I think that it is important for companies to be proactive and give any agent a copy of your contract which needs to stipulate when a recruitment is deemed "successful" and when agent fees will be paid. In your current instance it maybe prudent to compromise. I have full sympathy with you.


Regards


Pete
+++++ Re: Recruitment Charges mark 09/03/2007 20:21

Sarah,


I sympathise with your position however to a certain extent it is of your own doing. It is incumbent on you to have checked the T&Cs prior to progressing the candidate - is that not one of the resons why we in HR do not like the line talking direct to agencies because most of the time it lands them in hot water.


You would be best advised to have your own T&Cs issued as a matter of course to all agencies that you use or better still have a PSL set-up where all adhere to your policies and T&Cs.


On the flip side, you have to remember that it is not uncommon for small recruitment organisations to stipulate that the placement fee is payable on acceptance of offer - they are small companies where the cashflow situation were they waiting 3-6 months in some cases for the payment would be too costly.


In all case however, sa some of the other posters have pointed out, there should always be a sliding scale of fee rebates against the time frame within which a candidate resigns.


This may sound harsh, but we have all fallen foul of this situation at one time or another - once bitten twice shy!


Mark


(www.peaktalent.co.uk)
++++++ Re: Recruitment Charges zoe smith 12/03/2007 13:46

Dear Sarah


I work for an agency and am appauled at this.  I understand different agencies work in different ways however i ahve worked for a large mutiple and a smaller agency and neither of them would charge you if the candidate did not Start. 


The rules for the companies i worked for were invoice on the date of employment then work from a refund or replace on a sliding scale depending on length of service.  However your candidate did not start so is before week 1.


The t&c we had were as below and if the candidate did not start then they are not engaged, employed ar used.


However i am not a lawyer so get this checked.


 


I hope this helped


“Engagement” means the engagement, employment or use of the Applicant by the Client or any third party on a permanent or temporary basis, whether under a contract of service or for services; under an agency, licence, franchise or partnership agreement; or any other engagement; directly or through a limited company of which the Applicant is an officer or employee


 

 
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