It’s a growing issue in the recruitment sector, and something we’re seeing a lot more claims for. But why is that, and how can recruiters ensure their invoices are actually paid?
The Problems Recruiters Face
There are a huge number of reasons why a client may not want to pay a recruitment agency for their work – and, more often than not, it`s got nothing to do with the agency themselves. They may find that timesheets aren’t signed off by employers, that employers are actually using the candidate for a different job role, which would alter the hourly rate of the employee or that the employee has done something wrong. Another issue we have seen is where there have been disputes around temporary-to-permanent employees, and the finder’s fees that come with them. Or in the case of permanent placements, our personal favourite, employers claiming they found the candidate by some other means, and they therefore shouldn’t have to pay the recruiter for the candidate they placed. And many more issues besides.
To find out more about these problems, and how to solve them, read our latest blog, here
Terms And Conditions
In any business, terms and conditions are important but for recruiters they are absolutely vital if you want to get paid. Your terms and conditions set out what the client can expect from you, and what you in turn can expect from them. This includes agreeing to your fee structure, payment terms for invoices and how to handle disputes should they arise. When a new client comes on board, they should sign a copy of your terms and conditions, or a contract outlining the same points. This gives you a legal standing should they then refuse to pay an invoice, and a much better chance of retrieving the money if it should go to court.
Check out our quick guide on dealing with payment terms with your terms and conditions by clicking here
A lot of the reason’s recruitment agencies struggle with payments often come down to simple disputes. Conflict is never a nice thing to go through, but when conflict arises it can often be a challenge to navigate through. Quite often a business dispute will result in the recruiter not being paid for the work they delivered, even if the dispute isn’t about that work. And if a dispute occurs, recruiters often don’t know what to do or who they can turn to, especially if they aren’t getting paid because of it. So many choose the simple option – they do nothing at all. But we don’t believe this is a viable option, and we’ve got some tips for you.
Read more about resolving disputes and getting paid in our blog here