As the US economy improves, job openings with competitive benefits and compensation are now aplenty in the market.
One way to fill vacancies fast is to tap a staffing and recruitment agency. That is precisely what most are doing, especially for companies who need to hire en masse or onboard specialists.
You might think it’s a lucrative business for the recruiting industry, but it isn’t as peachy as it seems. Despite the demand, the recruiting industry still loses profit for a number of reasons—delinquent payers, clients who do not honor their end of the agreements, companies going bankrupt, and the very unfortunate practice of backdoor hiring.
So what happens then?
To help them collect missed fees, staffing firms often tap debt collection agencies. They hope to profit or break even through paying collections recruiting industry fees for their efforts and time in the hiring process.
What does a debt collection agency do?
As the name suggests, a debt collection agency collects fees and debts on behalf of the recruiting agency. They are in charge of going after your delinquent clients and making them pay the missed recruiting fee they owe you.
A debt collection agency, in general, does not have the best reputation. After all, they could be relentless and aggressive in order to achieve what they were hired to do. But that professional, unrelenting attitude is what gets the job done.
When do you subscribe to a debt collection agency’s services? Buckle up and get ready to pay the collections recruiting industry fees when you’re faced with these instances:
- When the client says they won’t pay you
Do not take it as a joke if the hiring company states they will not pay you, mainly if your recruiting firm accomplished tasks stipulated in the signed contract. If they say they won’t pay you, they probably mean it.
When the fee is overdue for 90 days
In real life, a recruitment collection agency observes 90 days before investigating and going after the client who failed to pay you.
- When they failed to follow through a promised date
Yes, there may be circumstances that indeed make it difficult for the problematic company to pay up. But you should always look after your best interest.
Uphold the promised date to ensure they won’t beg another extension and fail to follow through with it again.
Why Paying Collections Recruiting Fees Is Worth It
Paying the necessary collections recruiting fees will be worth it, especially if you’re paying a debt collection agency with a proven track record.
Always double-check the following:
- How many years have they been in operation?
- How many staffing firms have they helped?
- Are their strategies and employees solid and reliable?
To Wrap It Up
Missed recruiting fees are indeed a headache, but breathe easy once you work with an effective and efficient debt collection agency. You can trust them to have the resources and expertise to get what your staffing firm rightfully deserves.