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Recruiter Contracts
Recruiting & Staffing
Recruiter Contracts
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Many contingent recruiters contact employers asking for their business. They all have separate contracts to work with them. Do you sign multiple contingent contracts? So you could receive resumes from
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Forums » Topic Forums » Recruiting & Staffing » Recruiter Contracts
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Recruiter Contracts
posted at 4/13/2007 7:06 AM EDT
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Posts: 32
First: 6/10/2004 Last: 8/12/2011 |
Many contingent recruiters contact employers asking for their business. They all have separate contracts to work with them. Do you sign multiple contingent contracts? So you could receive resumes from Recruiter X for a positon and from Recruiter Y for another position. Is this okay to do? I'm not a lawyer and don't know our risk in signing both. |
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Recruiter Contracts
posted at 4/13/2007 7:18 AM EDT
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Posts: 3870
First: 2/12/2002 Last: 11/2/2009 |
Yes, it's perfectly OK to have more than one contingency contract. Many contingent recruiters ask for an "exclusive", but that's hooey. If I need to fill a position, I'd never give an contingent recruiter an exclusive and, if one pushes and says they won't work without one, then move on to the next recruiter.
You should have several items in your agreements with contingent firms. First is a stipulation that the first submission of a resume from an agency or from direct submission by the candidate will determine who "owns" the candidate and who'll get paid. This will go a long way to preventing messy disputes later on; without such a term, you run the risk of paying for candidates you may come to you directly or, worse, paying out two fees for the same hire if you can't show who submitted it first. Second, make sure there's a guarantee in terms of either a refund of any fees paid or a guaranteed replacement if the new hire from the agency voluntarily leaves within a certain period of time. Agencies will try for 30 days, but for a professional position that's ridiculous. Don't settle for anything less than 90 days. Third, many agencies insist on payment within 10 days of hire. Also ridiculous - use your usual payment terms from accounting for this one (net 30 days is standard). Some agencies in tight labor markets like the one we're in now might ask for some upfront money - a thousand or so to make sure they don't lose money on the assignment. Whether you do this or not will depend on how scarce your candidates are for a position and how good the agency is (try to get referrals from staffing people in other companies). Fees are very negotiable and again depend on the level and type of candidates you need. Lower level non-technical professional fees should be 15 - 20%. Technical professionals and more senior non-tech can be 20 - 25%. |
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