The business of recruitment is quite unique in comparison with other sectors. The majority of recruitment agencies operate on a contingency basis i.e. they don’t get paid unless their candidate gets the job. The arrangement usually includes a rebate or replacement clause, so if the candidate leaves within a fixed period the agency must either offer a refund or a replacement candidate for free.
Unfortunately, it’s common for clients to misunderstand their responsibilities and the technicalities of the terms of business. And sometimes clients will deliberately ignore their responsibilities in an attempt to avoid payment.
When a customer refuses to pay there are various options available to the recruiter for escalation. There are many debt collection agencies and law firms happy to assist, but there are very few who specialise in and understand the recruitment sector. Sterling have been collecting recruitment sector debt since 2007. Since then we have built up a wealth of expertise, with a team of collectors focussed solely on recruitment debt collection, and a client base of over 350 recruitment agencies using us to collect as and when needed, and relying on us for advice on terms and conditions and process.
In the case studies below we cover the most regular scenarios we come across for recruitment clients, including finding back door hires. In most cases they show the technical nature of the debts and how a thorough understanding of the sector makes the difference between collecting, or failing and throwing good money after bad.