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Contracting with Staffing Companies
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I'm considering signing a contract with Act-1 for my staffing needs but they say I can't use any other agency. I've heard the contacts have a clause that allow you to recruit from other agencies if th
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Contracting with Staffing Companies
posted at 6/25/2007 1:10 PM EDT
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Posts: 4
First: 6/25/2007
Last: 6/29/2007
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I'm considering signing a contract with Act-1 for my staffing needs but they say I can't use any other agency. I've heard the contacts have a clause that allow you to recruit from other agencies if they can't help you. Can anyone verify this? I just seem to get double talk from my representative (I won't name her). Any information would help ease my mind. Thanks.
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Contracting with Staffing Companies
posted at 6/25/2007 3:57 PM EDT
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Posts: 3870
First: 2/12/2002
Last: 11/2/2009
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You'd be foolish to sign a contract like that. You have a business that has recruiting needs, and if those needs aren't met the business suffers. Giving Act-1 a sole source agreement could be suicide for you if they don't deliver. If they won't negotiate, I'd find another vendor.
Is this just for temp staffing needs or regular full time employee staffing as well?
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Contracting with Staffing Companies
posted at 6/25/2007 5:46 PM EDT
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Posts: 4
First: 6/25/2007
Last: 6/29/2007
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There is a price advantage to signing an exclusive contract. I know larger companies insist on contractual staffing agreements. I know on the surface it sounds ridiculous to enter into an agreement like this but many companies do it and many agencies insist on it. I appreciate your warning and Iâm most likely going to heed it. However, Iâm still interested in knowing if anyone has reviewed the details of one of these contracts.
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Contracting with Staffing Companies
posted at 6/25/2007 5:49 PM EDT
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Posts: 4
First: 6/25/2007
Last: 6/29/2007
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Sorry. I didn't answer your question. It's mostly for temporary staffing. An "as needed" source. I planned on using the company for specific perm needs later on.
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Contracting with Staffing Companies
posted at 6/26/2007 9:34 AM EDT
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Posts: 3870
First: 2/12/2002
Last: 11/2/2009
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Is there a non-performance "out" for you in the contract? Example: if after XX number of days Act-1 has not provided an acceptable candidate, Employer (you) can go to another agency.
Have you also sourced pricing and a contract from at least one other agency?
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Contracting with Staffing Companies
posted at 6/27/2007 12:20 AM EDT
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Posts: 2
First: 6/27/2007
Last: 6/27/2007
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Do not sign any exclusivity of such kind , or you can let them have it for a specific period say days or weeks etc . that helps the agency to focus on the requirment and are sure that the company will not take too long to decide .
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Contracting with Staffing Companies
posted at 6/28/2007 7:08 AM EDT
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Posts: 16
First: 6/28/2007
Last: 9/6/2007
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I have worked both sides of the recruiting industry, my recommendation would be to not go into a 'sole source vendor' unless you have an 'out-clause' with an SLA (service level agreement). After 20 days without a canidate the hiring managers can go to any other vendor that you(in HR) have on your contract list that has been approved to work with.
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Contracting with Staffing Companies
posted at 6/29/2007 7:35 AM EDT
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Posts: 4
First: 6/25/2007
Last: 6/29/2007
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I thank you all for the advise. After looking everything over I agree. I will not signing this contract. Question: why WOULD anyone sign something like this?
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Contracting with Staffing Companies
posted at 6/29/2007 8:15 AM EDT
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Posts: 3870
First: 2/12/2002
Last: 11/2/2009
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Dear Osonice:
The staffing industry has lots of very ethical companies and individuals in it. Sadly, it also has a lot of unethical sleazeballs in it as well. Not saying that Act-1 is one of them, but a lot of agencies use hardball tactics simply because it's so competitive.
Why would anyone sign it? Because they're not smart like you and seek out other opinions or research it on their own.
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Contracting with Staffing Companies
posted at 7/3/2007 9:47 AM EDT
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Posts: 2
First: 7/3/2007
Last: 9/26/2007
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I have worked on both sides and my advice to you is to stay clear of any contractual agreement stating you will use only one service provider. In todays tight employee market you need to be able to secure your employees from several different resources. I would recommend having this staffing service as a primary if the pricing is good and then have two alternate services as a backup.
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