How Missed Recruiting Fees Negatively Impact Recruiting Firms

The hiring industry is on a roll now that the US economy is thriving again, with multiple businesses putting out job openings.

More companies and organizations are looking to fill their vacancies by tapping into staffing and recruitment companies. Surely, recruiting firms are making it big in the middle of this hiring frenzy.

Despite the demand for their services, though, there are some problems firms run into that make them lose more than gain. For example, missed recruiting fees make such a huge impact some recruiting firms barely even survive.

But why are there unpaid dues? Are there ways to avoid or recover these missed recruiting fees? Let’s deep dive.

What Are Missed Recruiting Fees and Why Do They Happen

But first, what are recruiting agencies, and what are these fees associated with them?

Recruiting agencies are the intermediaries in a hiring transaction involving a company and a prospect who may fit the current vacancy. The agency scouts, screens, and ultimately recruits the latter on behalf of the former.

The intention is that the company who sought the recruiting agency’s help will be as hands-off as possible in a process that could go extensive and arduous.

Why are there fees?

Well, recruiting agencies offer a service that does not come off cheap. Companies pay recruiting fees for the agency’s efforts, database or network, and involvement in the placement of a candidate.

And these fees are the dues that often get unpaid in the middle of the hiring process.

How do the fees go missing exactly? Most of the time, it’s because the hiring company engages in a billion-dollar problem called backdoor hiring.

Backdoor Hiring 101

Backdoor hiring, in a nutshell, is the process of hiring a candidate the recruiter scouted and introduced behind the recruiter’s back. Then, because it was the company that “essentially” did the hiring, they will give excuses not to pay the recruiter’s placement fees.

Some tell-tale signs can clue you in on potential missed recruiting fees:

If the candidate already got scouted or applied to the company

It’s tricky when the candidate has already received recruitment emails or has already gone through any steps in the hiring process. It’s tough because the company can just claim they already knew the candidate without your help.

If the company knows the candidate

If the company knows the candidate through any of the initial ways of contact stated above, there’s already a high possibility that they will pull the “we already know him” card on you.

If the hiring was put on hold

The hiring process is advancing well, and you now even have a candidate, or two lined up when the company decides to put it on hold. Sure, it may be for any other reason. But sometimes, it’s because they were already hiring while you waited.

If the client went radio silent

You have all the reasons to be suspicious, primarily if the preliminary interviews were already conducted.

If the candidate is MIA, too

The same goes for your candidate; if they are not replying, chances are they already got in without your help.

If the candidate barred you from LinkedIn

The professional networking site is one way to get updates on your prospects. However, if they blocked you or deleted updates related to you, a backdoor hiring might have taken place already.

How Can Recruiting Firms Claim Their Missed Recruiting Fees?

Aside from constant vigilance against the six ways to spot a backdoor hiring, recruiting firms should ensure they thoroughly researched the company and the prospects they will be working with.

Securing signed contracts and having safety nets like a 12-month possessory period are surefire ways to guarantee they won’t fall victim to missed recruiting fees.

Recruiting firms can also invest in backdoor technology solutions to safeguard their interests and efforts. These AI solutions allow and empower recruiting firms to monitor candidates to avoid or prove backdoor hiring scenarios.