For years now I have relied on A. Bernard Frechtman’s book, Employment Agency Law, A Guide for the Personnel Professional.
In the book I have (which I purchased in 1985), Chapter 3 is entitled, “Collecting The Fee You Think You Earned.” In this chapter, Frechtman deals with what he calls The Efficient Procuring Cause principle. The way I understand this principle is that if I was the catalyst that started the Chain of Events which finally ended in a placement, then I am due the fee. I don’t care if my candidate’s resume is on file in their Personnel Department, in their (or another) database, on the CFO’s desk, or if the candidate is a relative, or neighbor (this actually happened once) of the President. If I was the catalyst, then I am due the fee.
Frechtman also explains this by using the “But For” Rule. To me this means that “but for” my intervention, the placement would not have occurred. Interesting enough, here is what a huge hospital chain sent me when stating how they pay fees when hiring physicians: ?Having several physician openings throughout our hospital (network) has aroused questions by administrators as to who is to be awarded the fee when more than one recruiting firm presents the same candidate. According to the National Association of Physician Recruiters, “If a physician recruiter is not the procuring cause of a candidate’s decision to interview with a client, then the physician recruiter is not entitled to claim the fee, unless a specific contractual agreement otherwise exits.”
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But, I hasten to add, that without what I call the Pre-Prep (is that a word?) of the Hiring Manager, these logical explanations will not hold water. You can’t expect to be successful if you are offering all of this scintillating knowledge AFTER the resume has been discovered in their files or on their desks. So, the key is to begin this education process when starting to take the initial Job Order. Explain that you work in the specialty where they need a candidate. Explain that this specialty is a small niche and that it is possible, indeed very likely, that they will know the recruit you present to fill the position. In fact, at this point, you might even ask them for names of likely recruits.
But continue to explain that prior knowledge of the recruit/candidate won’t affect your business relationship and that you will still be due the fee because of the generally accepted principle of The Efficient Procuring Cause. And then go on and explain it. Get their sign-on day one. From that point forward, you will be in a strong position should Personnel raise its ugly head at any point during the hiring sequence. As in most of the things we do as recruiters, Pre-Prep is the Key!