A common issue in the staffing and recruiting industry is the presence of backdoor placements. These cause you to lose a large sum of money because your clients refuse to pay your fees. But what exactly are these placements and how do they impact your business as a whole?
What Are Backdoor Placements?
The staffing and recruiting business is filled with problems. But the biggest issue that these companies face is always going to be backdoor placements. These placements happen when a candidate that you’ve presented to a client suddenly gets hired without your knowledge. This means that you’re not paid for your services and it can cause your business and everyone involved to lose out on time and money in more ways than one.
The Effect of Backdoor Placements On Your Business
The effects of backdoor placements on your business can vary depending on how you decide to respond to the offending client/s. However, these are all detrimental to the future of your business. This is why you should be aware of their dangers.
Cash Flow Issues
Staffing and recruiting companies will present hundreds or even thousands of candidates each day depending on the size of your company. You have to remember that a single client doing a backdoor placement behind your back isn’t much. However, having more than a handful of your clients try to sneak their way out of paying you a fee can be a much bigger problem.
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One of the most valuable resources for any company is time. If you have to deal with a backdoor placement, then you’re using valuable time on a problem that could have been avoided or mitigated. The company will lose the time they’ve invested in presenting a candidate and will also lose time if they decide to use a lawsuit as their means of getting their fees.
The biggest problem that comes out of a backdoor placement is the three way legal battle between the company, client and candidate. This takes time, money and possibly the assistance of a professional collections company like Back Door Hires Solutions to pull off properly.
The Best Solutions to Tackling Backdoor Placements
It doesn’t help that a lawsuit is the magic bullet solution for most staffing and recruiting companies when a backdoor placement comes their way. However, there are a number of different ways that you can make things easier for you and be able to tackle these problematic placements even without the use of a lawsuit.
Stop Backdoor Placements Before They Even Happen With a Signed Contract
The best way to keep backdoor placements from ruining your company is to make sure that you prevent them from happening in the first place. A well-made contract can help in this regard. Make sure that your contract covers you and ensure that your client signs it. This legally binds them to pay for your services and dissuade them from doing a backdoor placement in the first place.
Hire a Professional Collections Company Specialized in Your Industry
The next solution to dealing with backdoor placements is to hire a collections company that specializes in your industry. A collections company that specializes in the staffing and recruiting industry will have the necessary tools and experience to deal with these problems. They can even help you get your fee without the need for a lawsuit and avoiding the fees and hassle that comes along with it.