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Collection Tip: Be Careful of the Words You Use

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Apr 16, 2012

Editor’s Note: Every Monday, Jeff Allen offers you a tip about what you should do to ensure you never miss out — or get beat out — of your well-earned fee. And FYI: Meet Jeff at the upcoming Fordyce Forum in June. Register now, save $200, and become eligible for a free, private, confidential one-om-one consultation with Jeff at the conference.

What Client Says:

We hired the candidate as a consultant.

 How Client Pays:

Over the past decade, employers have been cashing in on the consulting boom.  Unfortunately, contingency-fee recruiters have been the paymasters.

When you send a fee schedule that contains any of these 10 words, you’re aiming your recruiting revolver at your fee-free foot:

  1. Applicant
  2. Bonus
  3. Employee
  4. Employer
  5. Hire
  6. Job
  7. Payroll
  8. Position
  9. Salary
  10. Wages

These all lock you into payment only if a candidate is directly hired as a salaried employee.  But they lock you out of payment if the employee is hired as an “independent contractor” — a “consultant.”

Now you can aim straight for the fee with words in your fee schedule like:

  1. Assignment
  2. Candidate
  3. Company
  4. Compensation
  5.  Consultant
  6. Engage
  7. Independent
  8. Perform
  9. Project
  10. Services

Modify any PSA (placement service agreement) you get from a client this way too.  If the search is worth doing, this is worth doing!

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