Ten Practical Tips For Collecting Your Fees

After twenty years of representing some of the best recruiters in Texas in recovering their placement fees, there are some key issues that you can be thinking about that will help you to make more placements and recover 100% of your earned fees.

1. Get an agreement up front, oral or written. Some recruiters prepare written agreements. Some prefer oral agreements. In any event, just make sure you make an agreement as to the fee terms.
   
   
2. Send your fee schedule and a confirming letter. Recite the percentage in your letter. This is a matter of common practice for most of you.
   
   
3. Don’t place a client signature line on the fee schedule if you’ll go forward without it. The best case is to have a fee agreement signed by the client. However, don’t put a signature line for the client to use if you don’t require them to sign before starting your work.
   
   
4. Don’t use the words “procuring cause” or “proximate cause” or “cause” in your fee schedule. The fee is earned if they engage the services of someone you refer to them.
   
   
5. Keep good notes in the file. It doesn’t matter whether they are handwritten or maintained on the computer, just keep good notes of your activities.
   
   
6. Get specific authorization from the candidate for each resume sent out. Most of you require this. Some don’t for various reasons. If you’re trying to recover your fee in a problem situation you’ll wish you had taken the time to do this.
   
   
7. Never let the parties set up their own interviews without you. Even if they are just trying to be helpful, you should be involved in the process in some way.
   
   
8. Overcome the objections and summarize that in writing. Overcoming objections from the client or the candidate is the art of being a successful recruiter.
   
   
9. Save all your documents related to the placement, including fax transmittal slips, telephone slips, resumes, long distance telephone bills, etc. The general rule is, save all documents until you get paid. In addition, courts require you to save all electronic evidence.
   
   
10. Stamp all resumes with your name and treat them as "confidential trade secrets." Doing this will remove any doubt about your involvement.

BONUS: Know the appropriate provisions of the Texas Occupations Code formerly known as the Texas Personnel Employment Services Act, both for you and against you. Get certified as soon as possible and never stop learning from the best in the business.

Best wishes for a successful 2008,

Brian Melton
TAPC Association Legal Counsel


For more information contact:
Helene Cavanaugh, CTS
Executive Director, Texas Association of Personnel Consultants (TAPC)
1.888.974.2272 (phone)
1.866.488.7601 (fax)
13121 Louetta Road, Suite 1175
Cypress, Texas 77429
www.tapc.org