The myth of “prior knowledge”.
Everyone in the recruitment sector has experienced it.
You source, engage and interview a candidate for a role. You submit a CV after the terms are agreed.
And then comes the call.
“Just wanted to let you know. We already know this candidate from a previous application/networking/our other agency”. And so the client tells you not to expect a fee despite having probably sent through the candidate who will get an offer.
And the kicker? It isn’t true. They do owe you a fee if your terms are sound and agreed, and you have done your job properly.
It takes 4 simple steps:
- Review your terms. Do they define you as the “Effective Introducer” if the Candidate is not already in process for that specific role? And have your terms been agreed? (They don’t have to be signed, just not queried or “trumped” by the client’s terms.) If the hirer connects with someone on LI after you bring them to the hirer’s attention, that does not make them the “Effective Introducer”.
- When you interviewed the Candidate, did you ask them if they had applied for the role? Assuming they have said no, ask them to sign a brief, simple email that confirms that no one else has spoken to them about the role (including the client) and that they wish to be represented by your business.
(NB. It’s not uncommon for candidates to “insure” themselves by applying directly anyway, after you have presented the role. I’ve known employers collude with the candidate to cut you out, and even offer to split the fee they would have given to you. So make sure your team are very good at presenting an opportunity before they identify the employer.) - Here in the UK, the Conduct Regulations say that agencies must confirm with all candidates that they are willing to work in a role before introducing them (which means submitting an identifying document or CV). If the client argues that they have received the CV from another agency, point this out. So you are the effective introducer.
- In case they persist, make sure your agreed terms make the Client agree to present time-dated evidence on request to prove the “prior knowledge” AND that the candidate was already under consideration for this role.
And don’t fall for the classic response, “It’s very disappointing that you are taking this approach. It will destroy the working relationship”, from the client when you square up to them.
Actually, it’s the client that’s doing that. And that’s a client who may have stolen a fee from you before and probably will again.
If you’ve done your job as above, you deserve better.
Alison Humphries has made in excess of £300,000 for her clients in the last 2 years by making sure they have commercially sound terms and great processes. Most of all, she makes sure that your people understand them and implement them. This is just one example of how an effective, hands-on Board Advisor can improve your business performance and your bottom line. To explore working with Alison, contact her here.
