Insight on Three (3) Changes in Collecting Staffing and Recruiting Debts Over the Decades
Over the last 20 years I have seen a lot of changes when it comes to collecting staffing and recruiting debts. A lot of things have remained the same, and our clients are still making the same mistakes. There are systemic changes in the industry when it comes to collecting past due placement fees and temp staffing. The thing that I find most odd is that changes have very little to do with the economic ability for the debtor to pay. So I want to take a moment and share my insight on three changes that I have noticed over the decades, and a few of the changes are very current changes.
Back-Door Hires and conversion fees
This is the newest and in my opinion the fast growing change in the industry. We have seen a 295% increase in back-door hires over the last 18 months and the sad news is these figures are increasing every quarter. This has been the biggest increase to our collection fees this year. The amount of money that recruiters and staffing firms are leaving on the table is mind blowing. The thing that surprises me the most is our clients tell me, “ Yes that happened to me last year,and well, they said they got the candidate from another source so I figured what could I do? So I dropped the issue.” Dear God, why would you walk away from a fee that is owed to you by a client that is either too incompetent to keep track of candidate or a thief ?
Judges do not undervalue your services
Yep, image that. There are some people out there that say "Really you want 25% , 20% for a direct hire or conversion fee? That seems excessive. What did you really do, you just supplied a couple of resume?" I am sure you have heard it all before. The issue now is we are hearing that more and more from the courts. So what do you do? You make sure that you get an agreement signed.
The debtors attorneys are getting smarter about local laws in regards to staffing and recruiting
For example: In the state of Massachusetts their Supreme Court ruled more than a decade ago that you have to have a signed agreement or its not a deal. Guess what , the attorneys are now getting wind of this change. In the State of New Jersey you have to be licensed by the state to be a recruiter or provide staffing, or you cannot use their court system.
- Know who you are dealing with and how they pay their vendors.
- Get a signed agreement .
- Keep track of who you send out on interviews.
It really is that simple. If you should need for any of your collections issues then call me at 800-452-5287 Ext 6578 or Email me at wilson@aercollections.com.



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