ASA Central Network

  • 1.  Professional Fee Credit

    Posted 10-03-2022 18:08

    We are currently revamping our direct hire fee structure and pushing to provide more direct hires at the professional level. As we are discussing these services with companies, we are always asked about a credit and/or guarantee if the employee does not work out.

    Is anyone providing a percentage of the fee back in a credit or guaranteeing the fee over several months?

    Domenic DeYulis
    Branch Manager
    WorkLink Staffing
    Harrisburg PA
    (717) 635-8097
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  • 2.  RE: Professional Fee Credit

    Posted 10-04-2022 09:31
    Edited by Chris Morris 10-04-2022 09:36
    Hi Domenic!

    In my time within staffing I found it commonplace to have a tiered guarantee period that would usually span between 60-90 days. The amount of days you put into each tier depends upon the type of position and the overall "flight risk" of the placement not outlasting the guarantee. For example, for a 125k/yr Director level role you could offer a full 90 day at 100%, if needed to earn the business (assuming your client has a formalized ramp up period/KPIs/etc.). In contrast, for a 75k/yr Engineer/Manager level role you could offer a 60 day tiered model (1-20 days 100%, 21-45 days 50%, 46-60 days 25%, 61+ days 0%).

    There are plenty of ways you can craft this, as long as it is limiting your exposure. If you are looking for something that is more "boilerplate" you can have as a baseline, based upon position type, this model works pretty good- 90 day tiered- 1-30 days 100%, 31-60 days 50%, 61-90 days 25%, 91+ days 0%. Make sure you have a replacement clause as being the first option as opposed to offering a refund, as most clients would rather have the position filled rather than having to start from scratch.

    I hope this helps as I wish you and your team much success!

    Chris Morris
    Sr. Enterprise Account Executive
    Indianapolis, IN

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