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I recently had a company terminate a placed candidate 7 days after the 60 day guarantee expired. They first asked for a full refund (28K), then have asked to negotiate or no longer work with the company.

I have been on the other end of this situation and they expect the refund without any question.

Any thoughts???

Views: 23

Comment by Rowena Simpson on March 30, 2010 at 10:46am
This is really dirty! They have you by the proverbials here, so it's time for you to make an assessment of just how valuable this client is to you.

Decide first of all if you want to deal with a client who doesn't stick to your terms and who threatens you if you don't give them what they want. If you really can't afford to lose them and they are a major account for you then you need to start negotiating. Explain your situation to them and explain again the work that you put into this placement, also explain that you value their business and what to find a compromise as you presume that they also value your service.

My advice is to just give a little at first as they are unlikely just to cut you off without negotiation, but at least you are demonstrating that you are keen to keep their business.

However as I said, if their business really isn't worth that much to you then I would walk away.
Comment by Chris Thomas on March 30, 2010 at 10:51am
Yep.... Having been in the business for 17 years I have sent a few checks back. There is NEVER room for negotiation when it is our turn. FYI.... 3 placements w/ this company in 3 years. Not what I consider a major revenue stream.
Comment by Rowena Simpson on March 30, 2010 at 11:05am
I think you know what to do! Stick to your guns, but explain carefully your reasoning for not negotiating and explain your commitment to providing a first class service, and how much work goes into finding the candidate etc etc.

With any luck they will realise they are being unreasonable and you may retain their business for the future.... if you want to work with them again after this!
Comment by Julia Stone on March 30, 2010 at 11:56am
Offer to replace the person instead. Tell them you can't give the fee back, but you will do everything you can to make it right. Make sure to dig deep into why he was fired. I don't think it is dirty, or cheap or low handed on their part. but you do have the money and you may have to decide how valuable they will be as a client. I doubt after this type of event you will re-coup the money from them because they are probably already ticked at you for the hire not working out and They are just hoping to mitigate their damages. Why do I say this? Because my clients would ask me to send over replacements and it would never occur to them to demand a fee being returned. I would also talk with my client every 2-3 weeks until the guarantee was up next time. Better to head these things off early. If you really want to save the deal and you can't find a replacement (they may ask what value you provide if you can't, but that is a different issue) then offer to return a portion of the fee as a measure of good will. Again, I doubt they will work with you in the future though, so think carefully.

This kind of client would fall into the "there is always another client" category in my book.

Good luck!
Comment by Barbara Goldman on March 30, 2010 at 5:23pm
Do not ever give money back. Change your contract. If you own a small company, or recruit on your own, you cannot afford to give money back. Your contract should be a replacement guarantee.

Someone is playing hardball with you, and you need to play right back. I know its hard when you think you need a client, but this kind of client is called a "source" client in my book.

Adults signed a contract, made an agreement. The company chose to fire this person 7 days after the agreed upon guarantee time. What about this do they not understand? More troubling, what about this do you not understand?

Be proud of your services. Think of yourself as a true professional, not someone who can be kicked around. You gave them a service, you both agreed to the terms, what kind of person in business then starts to cry and whine? You are dealing with a jerk. Be proud of your services. What if you were a lawyer? Would they be trying this? I think not.

I'm the old broad of recruiting. You are in business. Clients are a dime a dozen. Go find another.

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