In the current job market, staffing and recruitment companies have many opportunities. However, with companies scrambling to fill vacancies, recruiters may run into a problematic situation where their candidates are employed through a backdoor.
Often, staffing companies serve as a conduit between customers and employers.
Until they locate the appropriate applicant, recruiters are in command when firms post a job opening. Recruiters thoroughly evaluate and recommend prospects to their clients for every open position. They are aware that they are only compensated when their recommended applicant is hired.
But are all applicants hired? No. Recruiters have always been interested in learning what happened to all of the unsuccessful candidates.
Has a client hired someone who will work behind you to avoid paying you?
If so, you just witnessed backdoor placements.
Why do backdoor placements happen?
Backdoor hires are candidates that recruiting firms lose to the customers they serve. This is due to the fact that the business decided to hire a candidate while still in the selection process, doing so without making any payments to the agency that was intended to manage the hiring on their behalf.
The truth is that since your customer already has the profiles of your candidates in their database, it is entirely feasible that they will choose to recruit any of them in the future, whether for the same or a different role. Your customer might not have given you credit for those hires if they had actually forgotten that you recommended that individual.
The worst aspect is that such backdoor placements could not even be known to recruiters. Keeping track of the hundreds of send-outs scheduled over months is not a simple feat.
Why are backdoor placements bad news?
For staffing agencies, being involved in a backdoor employment scenario is a nightmare due to the difficulty in collecting invoices.
The company probably never intended to pay you if they employ this strategy since they want to have their cake and eat it too.
The loss of revenue for the recruiting firm is not the only disadvantage of a backdoor hire. Ironically, they are bad news for themselves and the company that purposefully underpaid for hiring.
Even though the offending company might think it has extra money saved up, resourceful recruiters or those who have invested in backdoor technological solutions will have the knowledge and tools necessary to make them apologize. In addition, they will realize that it would have been better if they had paid since the charges will be significant and they have already proven unreliable.
Additionally, it could be difficult for the applicant who agreed to the backdoor hiring to collaborate with other employment companies. Recruiters might not want to work for them, and the ease with which they permitted dishonesty says so much about their character.
Avoid Backdoor Placements
After proving that backdoor hiring is a bad idea for everyone involved, let us move on to some helpful advice: what can you do to prevent them from happening?
- Strengthen your relationship with the hiring company
Some people who have previously experienced backdoor placements may find this difficult to accept. Still, if your relationship with the hiring manager is strong enough, they will not recruit someone behind your back.
Manage their expectations and do everything you can to promote effective communication; the value will organically develop in your relationship.
- Cover all your bases
Before forwarding any candidate CVs, ensure your contracts are signed and finalized, safety nets like a 12-month possessory term are in place, and extensive due investigation has been done on the company and your prospects.
- Cultivate candidate loyalty
They will not hesitate to jump in and remove you from the conversation if there is a disconnect between the recruiter and the candidate.
Make every effort to demonstrate to the candidate that you are on their side and that they are not merely a commodity. They will respect you more if you truly pay attention to what your applicants say and only provide them with opportunities at organizations they want to work for.
- Invest in backdoor solutions
Given that backdoor recruiting threatens the operations of your staffing company, might investing in a backdoor technology solution be the answer?
Yes. These AI solutions provide staffing organizations with cutting-edge capabilities to track candidates and avoid any backdoor placements. Fighting fire with fire makes perfect sense at a time when most transactions and communication take place online. Equalize the playing field and collect what your staffing company is owed.
To Wrap It Up
Given the plethora of job opportunities accessible, firms looking to hire will profit from a recruiting firm’s services. But regrettably, some companies might lie and use a backdoor hiring procedure. Therefore, every staffing organization should invest in foolproof backdoor placement technology to protect their objectives and work.
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