Why Tap Debt Collection for Recruitment Agencies
Wilson Cole | May 10, 2022
If you are looking for work in the age of the new normal, you are probably juggling multiple opportunities and RSVPing to as many interviews as you can. However, the US economy has proven to be resilient, with several businesses across all industries proactive in filling their openings.
The burgeoning recruiting market appears to be ripe with chances for staffing agencies. However, with corporations scrambling to fill positions, recruiters may find themselves in an unpleasant situation: their applicants becoming backdoor hires.
Typically, staffing firms act as a link between job seekers and employers.
Recruiters control the show from the moment a job opening is announced until a perfectly matched candidate is hired.
Backdoor hires are candidates who are lost to the customers that recruitment agencies represent. During the selection process, the company decides to hire a candidate—without paying a dime to the firm that was meant to handle the hiring.
Backdoor hiring is an unfortunate situation no recruitment agency wants to face. But what now, when it does happen? Are their recovery services or a collections specialist a recruitment agency can tap to collect bad debts from clients who refuse to pay?
Yes, and we’ll talk more about that below.
When to Tap Debt Collection for Recruitment Agencies
Tap reputable debt collection for recruitment agencies to protect your cash flow.
There could be various reasons why these debtors refuse to repay you. There is bankruptcy, charges that you completed or unacceptably provided the service or product, and they forgot they owe you money—but whatever the reason, it ultimately boils down to getting the money you are owed.
There are just three instances in which you should hire them to collect debts.
1. Believe them when they say they will not pay you.
Why should the client claim they will not pay you if you are 100 % convinced you fulfilled your side of the contract without any flaws? They mean it the majority of the time. They are refusing to pay you and will continue to do so unless someone intervenes.
2. It’s been more than 90 days
Most lending institutions provide 90 days or three months for payment grace if it has been 90 days since it was due; failure to make any payment after this time is already an abuse of your generosity.
Furthermore, if it has been this long, the client is likely to have stopped contacting you. How much more so now that you can not even get a "seen" from them? If they would not pay while you were still speaking, how much more so now that you can not even get a "seen" from them?
3. They missed the extended due date
They did indicate that they would pay later. So you agreed, waited a day, and were still owed money. Are you planning on staying?
Allowing another extension would enable the delinquent client to take advantage of your charity, which would be bad karma. So, instead of breaking the agreement, stick to it to protect your business and interests.
If your client checked all of these terms, you should call a reputable credit and collections agency.
What Makes a Good Debt Collection Agency?
You were essentially defrauded of the money you were owed. Do you want to make the same mistake by hiring an untrustworthy person?
The response is a definite no.
So, how can you tell which debt collection agency is the most effective? You need first to answer the following three questions before contacting one:
1. How long has the firm been in operation?
They did indicate that they would pay later. So you agreed, waited a day, and were still owed money. Are you planning on staying?
Allowing another extension would enable the delinquent client to take advantage of your charity, which would be bad karma. So, instead of breaking the agreement, stick to it to protect your business and interests.
2. How many companies have they helped?
They did indicate that they would pay later. So you agreed, waited a day, and were still owed money. Are you planning on staying?
Allowing another extension would enable the delinquent client to take advantage of your charity, which would be bad karma. So, instead of breaking the agreement, stick to it to protect your business and interests.
3. Are the collection agency's collecting process and staff dependable?
They did indicate that they would pay later. So you agreed, waited a day, and were still owed money. Are you planning on staying?
Allowing another extension would enable the delinquent client to take advantage of your charity, which would be bad karma. So, instead of breaking the agreement, stick to it to protect your business and interests.
To Wrap It Up
It is a headache to recover outstanding debt because it is a complex undertaking. To do so, you will need to seek the services of professionals. In addition, you will want proof that the debt collection agency you are about to contact knows what they are doing. The best debt collection agencies will be able to show you years of experience and success stories to back up their claims.
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.