Hi, this is Wilson Cole, President of Adams, Evens & Ross (AER), and today I want to take a few minutes to discuss primary excuses that AER is given from hiring companies regarding back door hires (BDH).
Easily the most popular is when a staffing company calls me to say that a hiring company gave the excuse they already knew a person they hired from somewhere else, even though this same person used to work for the staffing company. Unfortunately a lot of staffing companies will give up on their claim at this point. In this situation, unless the hiring company can show the hired person was under active consideration, odds are strong that AER can collect on a claim.
The next most popular excuse is that the candidate didn’t last the 30, 60, 90 or whatever days that was guaranteed in the contract (in regards to replacement guarantees, not money back guarantees). Another excuse from hiring companies is that they never signed an agreement. In my experience, this excuse indicates that the hiring company doesn’t plan on paying you related to the hiring of this person and never planned on paying.
Another excuse, a variation of the “they already knew them” excuse, is when the hiring company claims the person they hired already applied with them months or years prior. This is irrelevant unless they were actively considering the person (and can prove it).
Another excuse is that a hiring company hired someone as an independent contractor or consultant, not a full-time employee. This excuse is easily squashed by having a signed contract and having specific wording in that contract that if the person is hired directly “for any position, in any capacity, then a fee is owed.”
Another excuse I hear is one of a hired person that was presented by another recruiter. Timing is the key here. This excuse is more plausible the closer it is given after someone is presented. The more time that passes after someone is presented and this excuse is given, the more likely there is more to the story. Hopefully you do not run into the scenario I have where clients have called to say the HR manager at a company took a resume presented to them, passed it along to another recruiter, split the fee with them and then gave this excuse.
One last excuse is that a candidate was referred to them by someone internally. This is especially attractive for companies that have internal referral programs, but as long as the staffing company has clear documentation of a job being presented to the candidate, we should be able to collect.
For more information, I have written a book, put together a webinar, hold coaching classes and also have tracking software all related to back door hires.
Links to these sources of information can be found at https://www.backdoorhires.com/.
Wilson Cole is the founder and CEO of Adams, Evens & Ross, the nations largest credit and collection agency design exclusively for the staffing and recruiting industry. In 2008 he was inducted into INC Magazines, “INC 500” for being the CEO of Adams, Evens & Ross, the 307th fastest growing privately held company in America. This exclusive group of other INC 500 CEOs includes Bill Gates of Microsoft and Larry Ellison of Oracle.In 2007 Recruiting & Staffing Solutions Magazine’s Editorial Staff named him “ The Billion Dollar Man” due to the fact that he had collected or helped his clients collect more than 1 Billion dollars in past due debt over his career of almost 20 years as CEO of Adams, Evens & Ross.