Collection Tip: Getting Your Full Fee When The Client Claims Temp Hire

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Apr 30, 2012

Editor’s Note: Every Monday, Jeff Allen offers you a tip about what you should do to ensure you never miss out — or get beat out — of your well-earned fee.

Meet Jeff at the upcoming Fordyce Forum in June. Register now  to become eligible for a free, private, confidential one-on-one consultation with Jeff at the conference. Consultations are limited, and will be scheduled on a first-come, first-served basis, with Jeff arranging the time directly with you.


What Client Says

We hired the candidate as a temporary employee.

How Client Pays

Look at your fee schedule. See how it says (or conveys) employment will be “permanent” or “regular.” Can a temp assignment avoid its terms?

One trap you’ll probably miss is the annualized compensation. Somewhere clearly in your schedule, you must state something (consistent with the rest of the terms) like:

While projected annual compensation is used to determine the fee, anticipated or actual duration of the candidate’s tenure is not a factor in computing the amount due.

Then again, you might just have a rubber stamp made that reads: Life is a temporary assignment.

Fee schedules, employer-generated PSA’s (placement service agreements), e-mail boilerplate, invoices, and all other communication to clients, should contain consistent language that decouples the fee from the tenure of the candidate.

That will eliminate the “temp defense.”

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