MORE GREAT WAYS TO REDUCE STAFFING INDUSTRY RISK

1. MORE MORE GREAT WAYS TO REDUCE GREAT WAYS TO REDUCE STAFFING INDUSTRY RISK STAFFING INDUSTRY RISK

2. One thing stays constant in business and that is risk. This is especially true in the staffing and recruiting industry because of the number of problems the industry as a whole has to deal with. But what exactly are the options available to you to minimize the risk involved when working in the staffing and recruiting industry?

3. THE ROOT OF THE ROOT OF STAFFING INDUSTRY STAFFING INDUSTRY RISK RISK Before we tackle the ways you can cover yourself and minimize the risk involved, we first have to take a look at the root of the problem. Staffing and recruiting industry risk stems from the fact that they offer a service where candidates are presented to clients and they are paid for the service. There are certainly times when the process goes smoothly, but more often than not, the staffing company will run into a problem called backdoor hiring. Backdoor hires happen when a client hires a candidate without notifying the staffing company. This causes them to lose out on the fees and practically work for free.

4. WHAT CAN BE DONE WHAT CAN BE DONE TO REDUCE STAFFING TO REDUCE STAFFING INDUSTRY RISK? INDUSTRY RISK? There are a number of ways you can tackle the risk involved in the staffing industry and backdoor recruitment processes. We’ve explained them below to help you be able to make the right decisions to reduce the chance that you have to deal with this problem and be able to quickly recover in case you do have to tackle it head on.

5. ENSURE THAT YOU HAVE A SIGNED ENSURE THAT YOU HAVE A SIGNED CONTRACT THAT COVERS YOU LEGALLY CONTRACT THAT COVERS YOU LEGALLY There is nothing more important in the staffing industry than making sure that you have a contract. A contract is a legally binding document that ensures that you are protected. However, it wouldn’t do much if the provisions in the contract end up voiding you out of your own contract. Yes, we’ve had a client that had a provision that voided them out of their own contract. Make sure that you constantly check your contracts and revise as necessary to avoid being in the same situation. You should also ensure that you have a written and signed contract. This is due to verbal contracts only being valid within twelve months of the interaction. They can also use the fact that there was no signed contract as a defence in court. This makes it easier for your client to avoid paying you your owed fee.

6. One of the worst things that could happen to a company is to declare bankruptcy and close their doors. However, it is also a problem for every single company that they owe. If you’re one of them then you might just be out of luck. However, a great way to make sure that a company pays you even if they’ve declared bankruptcy is to have a personal guarantee signed. You may be wondering how a personal guarantee can help you collect. The main reason why a personal guarantee helps you collect on backdoor placement fees is because it ties liability to the individual running the business and not the company. This means that even if the company, which is it’s own entity, closes, the debt is still owed by the individual running it. CONSIDER A CONSIDER A PERSONAL PERSONAL GUARANTEE GUARANTEE

7. IMPROVE RELATIONSHIPS IMPROVE RELATIONSHIPS WITH BOTH CLIENTS AND WITH BOTH CLIENTS AND CANDIDATES CANDIDATES As a staffing and recruiting company, you have to understand that you are providing a service that will be paid at a later date. This opens up the possibility of you providing that service and your client simply running away with the fruits of your labor without paying you anything in return. This is why having good relations with both your clients and candidates. It takes both of them to agree to the hiring for it to turn into a backdoor hire. If your candidate trusts you more than the client, it will be rare for them to agree with the backdoor hiring proposition of the client because they have nothing to gain and everything to lose from it. The candidate may even warn you of the client’s plan to backdoor hire them and you can stop a problem before it even happens.

8. HAVE AN AUDIT HAVE AN AUDIT TRAIL TO FOLLOW TRAIL TO FOLLOW A valuable tool for reducing staffing industry risk is to have a paper trail for each of your clients. This lets you track everything that you need to make sure that you can minimize your staffing industry risk while also making it easier for you to track any backdoor recruitment processes that might have gone unfound. You should ensure that the audit trail you’re following has all the info that you need to create a solid case in case it comes to that point. This includes any agreements, both verbal and signed, information regarding the fees owed and the candidate himself. We’ve had a case where the lawyer of the debtor defended the case by saying that the candidate that they hired wasn’t the same person as the one that was presented to them several months back. The audit trail of our client proved it otherwise and the case was deflated in an instant.

9. USE TECHNOLOGY TO YOUR USE TECHNOLOGY TO YOUR ADVANTAGE ADVANTAGE The staffing and recruiting industry, like many other industries, has evolved over the years. Not only are the styles that used to work in the past less effective, but they are slowly becoming outdated by today’s standards. However, the great part about the progress of the industry is that there are many great tools that you can use to improve your odds of success and reduce the amount of staffing industry risk you have to deal with. An example is the online service provided by Back Door Hire Solutions that lets you credit check any company for free. This opens up a number of possibilities for you while also closing the door on the risk.

10. HAVE A TEAM OF LAWYERS OR HAVE A TEAM OF LAWYERS OR PROFESSIONAL COLLECTIONS COMPANY PROFESSIONAL COLLECTIONS COMPANY AVAILABLE AVAILABLE An essential part of dealing with problems in most businesses is to make sure that you have the contact details of a third party that can help you. Tackling the problem yourself could make the problem worse at times. We’ve had many clients that have gone and ruined their case because they opted to directly interact with the offending debtor instead of having a third party handle it for them. These third parties can either be your lawyer, or a professional collections company that can deal with the problems while you focus on providing your services for your more loyal clients. Regardless of who you utilize in these situations, what matters is that you have to make sure that you’re covered legally by those qualified by those to do so.