How to Negotiate Recruiting Contracts (Fees & Guarantees)

[@recruitemy]

00:00:00 - Contract Negotiation: Fees and Guarantees 00:01:07 - Understanding Recruitment Fees 00:02:25 - The Recruitment Guarantee 00:03:42 - Setting the right fee for the workload 00:05:03 - The importance of guarantee periods in recruitment 00:06:20 - Balancing Guarantees for Clients 00:07:38 - Negotiating Client Guarantees 00:08:47 - The Unreliability of Human Resources 00:09:55 - Successful Contract Negotiations 00:11:01 - Finding Value in This

[@steve8473]

These are most DEFINITELY words of success, and I'm lost for words - mate one word (AMAZING) keep it up and thank you

[@BenNader]

Glad you like them!

[@AdrianoGuedes-um6fp]

Thank you so much, Ben. You've inspired to start my own business. Can't than you enough for your invaluable, informative contributions to all of us. Kudos.

[@edmcavoy985]

Clear and simple explanation of fees vs. guarantees. Nice job Ben

[@runthomas]

we used to send invoices out the second we find the client is onsite and started...so we send the invoice out ON THE Candidate START DATE...payable either 14 or 30 days after that date....whatever you have agreed in your terms of business. Then if the payment is not made precisely on time, you should have penalties written into your terms saying ....interest of x percent will be added for late payment, blah blah...but we never charged interest...but it gave us the right to HOUND THE ACCOUNTS PAYABLE debt at the client if they were even 1 day late. "where's me money......wheres the fuckin money"

[@BenNader]

rundown thomas Totally agreed the earlier the better overall once the candidate is working for the client they should have an invoice as soon as possible so the accounts payable department can take care of stuff ASAP and get a check in the mail or get the wire set or whatever

[@jcpnlz]

Loving your videos man. I'm an operations manager for a third party trucking company and when i they unfortunately don't meet the 2 requirements for the company as they don't have full 2 years verifiable experience i refer them to other companies I've worked for. Perhaps i should turn that into my own recruiting agency haha.

[@ThinkWings]

Hey Ben ..i came across ur channel and watched couple of video...i must say ur giving awesome content..it's really helpful..thanks a ton

[@BenNader]

Thanks Bro!

[@abdishakurhashi2288]

Thank you Ben, you’re awesome!!

[@BenNader]

Thanks

[@ragrago]

So much constructive Information!

[@BenNader]

Thanks!

[@tashiacreolequeenwilliams9885]

Really great videos, love it

[@natking1u1z99]

As someone who contracts in the IT field this video answers a lot questions. I mean I already knew the recruiter applies a percentage on top of my rate. But I had no idea there was a thirty day threshold where a fee is changed.

[@BenNader]

That 30 day threshold really is just an insurance guarantee for DIRECT HIRE, not contract, so basically when you direct place a candidate and they quit or get fired in 30 or 60 days etc, as a recruiter you replace them. It's a contractual agreement to give the client some peace of mind.

[@Happyhealingbaby]

I love this!! Thank you so much! I am starting off and man! This is great

[@BenNader]

You got this!

[@swaglive4856]

Thank you Ben for all the info. I have come to like your videos. So it is better for the company tobpay the employee directly other than paying the contractor who in tern pays the employee? Is this what you mean?

[@izzyg4882]

I’m really glad I ran into your videos. You have lots of great info. And great explanations and vids. Do you know a place I would be able to get a agreement so that I can have it reviewed and modified for me? Any info would be appreciated. Thank you.

[@BenNader]

Message me on my biz page and I will send my stuff over. facebook.com/TheSixFigureRecruiter/

[@swaglive4856]

Me too am interested

[@susanpacheco5827]

How about a 6 month guarantee with a refund if you are given 30 days to find a candidate from when they leave and if not then there is a tiered refund structure based on how long candidatestayed. Ie 4 weeks 100% refund,8 weeks 50% and so on…? Thoughts?

[@KrystalBella]

Excellent video

[@BenNader]

Thank you very much!

[@swaglive4856]

Hi Ben. Whsts the best Ats/crm software for independent staffing agency. One that has payroll, timekeeping etc

[@olufemioloyede2328]

Pls how do I get all the forms and contract?

[@ephantom07]

Hello, what do you use for invoicing your customers? What time tracking service do you use to track what your employees work?

[@BenNader]

If I'm invoicing a direct hire client, I use a software program just to write up an invoice and email it to them, if I'm doing temp / contractors, I use a software called Gusto that's pretty sweet for running payroll and keeping track of hours/reporting.

[@timobanks560]

very informative

[@BenNader]

Glad you liked it

[@heavyequipnow4052]

What is your take on putting a registry nurse staffing vs staffing overall jobs.

[@BenNader]

I'm not sure I fully understand the question

[@karstonfox9838]

like that jacket

[@tonysmith944]

If you have to replace someone, does the negotiated 30-60 day clock start over before you can collect your percentage? Like when would you get paid if a person has to be replaced?

[@ahmadasif545]

What are the preemployment checks you perform for direct hired candidate before hiring them for your client? And what kind of staff do you mostly hire for clients. Are you working in healthcare sector as well?

[@BenNader]

I work in various niches, as far as preemployment checks that is all individual about whom your client is, what they want and if you even need to do that what so ever, generally in DIRECT HIRE you do not, if you are in STAFFING, then it's something you'll need to do, but that's a whole different ball game.

[@pgonza77]

How many times do you offer to replace the candidates?

[@BenNader]

ONCE MAXIMUM

[@GrimKiLLzGaming]

Is it okay if the agency is charging 36.50 but I'm only getting 22 I'm in Cali btw

[@jamaljabril123]

Do you send invoice for the first day training or there official first day?

[@BenNader]

Yes, invoice gets sent the first day the employee starts.

[@tashiacreolequeenwilliams9885]

Do you charge a placement fee for each person you have to find? Say a company needs 3 people. Do u charge 10 percent for each person or just one set rate?

[@madzalawam6826]

How do recruitment agencies verify employers?

[@mja7282]

Hi ben..great video..question: so to replace do you get another 10% fee or is it just to replace them again?

[@BenNader]

No double dipping, no. So the guarantee is that you put a good candidate in there that stays for 30 days (example). If they quit on day 29, it is your full contractual responsibility to find them a new candidate in a reasonable amount of time and no you do not collect another 10%, why would you? They're out a candidate....right? Make sense? In general labor this is a hassle but fairly easy, have only done it a couple times, you just run some more ads, grab a new candidate or a few and do some more interviews. DEFINETELY BEATS GIVING BACK THAT FEE THOUGH! NEVER have a refund clause only a replacement clause.

[@mja7282]

Ok just was wondering:) I figured that..I'm new to all this recruiting contracting. I've worked in the employment side but as a career counselor... I've placed people in jobs but the company I worked had a seperate side to do this for me and took care of the contractual side..so I'm a newbie at this end :) thanks

[@BenNader]

Absolutely, feel free to ask away, there's no stupid questions, ya don't know until you ask :) also join six figure recruiters on FB facebook.com/groups/372761016618589/

[@tpham514]

Ben if someone leaves in the 30 day guarantee and you replace them, does the 30 day window restart?

[@BenNader]

Yes it does

[@andrewbrown5693]

Do you invoice out after the guarantee time frame or do you invoice out after a week or so

[@BenNader]

Andrew Brown this is all something you put in the contract. My personal practice is to setup net 14 or maximum net 30 day terms on collection of fee. Meaning fee is due / should be in my mailbox on the 14th or 30th day after start date of employee. I send the invoice out via email to the client about a week prior to the actual due date just so they have it in hand and can cut a check and mail over. Pro tip: I also just use this invoice-generator.com/#/1

[@BenNader]

Andrew Brown to be more direct I absolutely invoice prior to the guarantee date period is over. That’s sort of a secondary / separate piece of the contract. Payment is it’s own entity and whether or not the employee works out during the guarantee I’m replacing them anyways not refunding so I like to get my money ASAP on the placement because if I need to replace the employee the money is irrelevant.

[@jaynise842003]

@@BenNader new subscriber here. Great job Ben. One question. I'm looking to branch off on my own. How do we determine the markup that is charge to the client on a temporary contractor farm out? Is there a standard if so how much? Let's say in aviation are we typically charging 60/hr and paying the w2 contractor 40/hr? What is the total billable that you are seeing?

[@governmentnameunknown8960]

If we give the client a 30 day guarantee and the candidate leaves on the 31st day, does the client need to pay us 10% again?

[@BenNader]

NO, that's the point, they paid us and we guaranteed it for 30 days and if they leave on day 31, the guarantee period is up, our responsibility is over.

[@governmentnameunknown8960]

@@BenNader ok that makes sense. 🙂

[@stfulol1815]

This is awesome material. Thank you so much for sharing your knowledge. If a worker leaves etc before the guaranteed time and you replace that person is it another 30 day guarantee? And how many times do you guarantee the position? Do you fill as many as needed to get past the guaranteed time? What software are you using to keep track of your clients, invoicing, tax related stuff etc?

[@BenNader]

So many questions, I'd need to make a video

[@AlyviasDOTcom]

Hey Ben, is temp staffing considered contract staffing also and would I have to still pay my candidates out of pocket first?

[@donquias903]

Depending on your payment terms, you’ll have to pay your employee Until the client starts paying you.

[@tatianabowling4436]

Do you charge every time you find someone if the person you found quit

[@BenNader]

If someone quits you need to replace them within the time frame agreed upon in your contract.

[@tatianabowling4436]

@@BenNader I really appreciate your content it is helping me a lot I enjoy that you go into detail about certain things and even though I had this question I later found your video discussing this and I feel it’s very helpful

[@HolyShitWhatDidYouDo]

Do you charge a fee for finding the candidates upfront, and then wait 30-60 days and then get your 2nd (main) 10% fee, or do you only get paid after the 30 days?

[@HolyShitWhatDidYouDo]

I mean do you charge them lets say for example $500 up front just to cover cost of drug screening and back ground checks, and then also get the 10% you mentioned. Or is it all out of your pocket until that 30 days or 60 days is up?

[@BenNader]

@@HolyShitWhatDidYouDo Great question the difference is if you are doing direct hire placement you do not cover these costs the client does, if you are doing staffing that means that you employ your own workers that will then work for your client in that scenario you will cover the costs of drug screening and background checks but you will also build that cost into your mark up margin

[@stfulol1815]

I want to like your page but I do not see it on here.

[@BenNader]

all the links are in the description of the video