Staffing and Recruiting companies play an important role in the business world. They alleviate the stress that comes with finding and hiring top candidates to fill positions at a company. Instead of spending the time and resources necessary to hire an employee, companies will contract with recruiting firms to do the job for them. After the firm has successfully fulfilled the terms outlined in their contract, the company pays them for their work. This should be an easy transaction between the two companies, but, as everyone knows, there are always exceptions. Sometimes, clients will refuse to pay placement fees or try to negotiate their way out of them. So, what do you do when a client missed paying placement fees? And how do you know if you have a good case to collect past-due recruiting placement fees?
For those of you who are familiar with our company, you know that we are huge proponents of having legal counsel on any contract that you draw up or sign. You can save thousands of dollars in litigation fees if you spend the money up front to have a lawyer work with you when you enter into a contract with a client. Warning aside, our clients come to us to help them collect on past-due placement fees. We take all kinds of cases, but there are a few ways to know if you have a good case to collect on missed recruiting fees.
There are other ways to tell if you have a good case to collect on past-due placement fees, but the three above are some of the best. A signed contract will always be your best tool if you have any issues with one of your clients.