How Staffing and Recruiting Companies Should Handle Backdoor Hires

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How Staffing and Recruiting Companies Should
Handle Backdoor Hires
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• A major problem that every staffing and
  recruiting company faces each day is the threat
  of backdoor hires. We call this the billion
  dollar problem because of how many staffing and
  recruiting companies lose a substantial amount of
  money because of it. 
• The worst part is that not all staffing and
  recruiting companies are capable of taking this
  problem on their own.

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What You Can Do To Protect Your Business From
Backdoor Hires

• This billion dollar problem is a difficult matter
  to handle. This is especially true since the
  debtors that would rather backdoor hire your
  candidate rather than pay your fees will have a
  number of excuses that they will be using. From
  knowing the candidate beforehand to hiring the
  candidate as a consultant rather than a full
  employee are just some of the popular excuses.
  Despite this however, there are a number of ways
  you can ensure that you can get your rightfully
  owed fees which we will be discussing below.

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Have a Signed Contract, Personal Guarantee Or
Both

• It cannot be stressed how important it is to make
  sure that you have a signed contract when youre
  selling services to a client. This is a written
  guarantee that your client owes you for the
  services you gave them. A personal guarantee is
  also a good idea as it safeguards your
  transaction from your client declaring
  bankruptcy. The company is the one that shoulders
  the weight of a transaction and not any singular
  person. However, with a personal guarantee you
  can tie the transaction to the person.This lets
  you get your owed fees regardless of the state of
  their company.

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Have a Possessory Period

• Another tool in the arsenal of every staffing and
  recruiting company is the presence of a
  possessory period in their contracts. A
  possessory period holds your clients liable to
  pay your services or product fees regardless of
  the circumstances surrounding the transaction.
  This includes the common excuse of hiring the
  candidate through another staffing and recruiting
  company.

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If Your Debtor Continues to Make Excuses, Stay
Silent and Get A Third Party To Help

• One thing that should always be done when dealing
  with companies that continue to make excuses is
  to stay silent and let a third party like a
  lawyer or professional collections company youve
  hired interact with them. 
• This is because of how everything you say or do
  from that point on will be used by your debtors
  lawyers to try and get your debtor out of paying
  your fee.
• You cannot imagine how many times weve seen
  someone say something that ruined their case and
  gave the debtor an opening to get out of paying
  their fee. So stay silent and let someone who
  knows how to handle it do the talking.