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2 min read
January 25, 2025

The Recruiter’s Guide to Collecting Unpaid Placement Fees

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The "Candidate Started" Ghosting: A Common Recruitment Challenge

In the world of recruitment, the work is technically finished the moment the candidate walks through the door on day one. But for many agencies, that's exactly when the payment struggle begins. Once the "problem" (the vacancy) is solved, the client often deprioritizes the recruiter's invoice, focusing instead on onboarding the new hire and moving on to other business priorities.

The "Guarantee Period" Leverage: Protecting Your Fee

Most recruitment contracts include a rebate or guarantee period—a safety net for the client if the candidate doesn't work out. To encourage timely payment, consider linking the guarantee mechanics to the timing of payment in your written terms (for example, the guarantee period starts when the invoice is paid, or is paused while the fee is overdue). Whether and how you can do this depends on your contract and what the client agrees in writing, so don’t spring surprises—make it explicit up front.

Automating the Nudge: Efficiency for Sales-Driven Teams

Recruiters are naturally sales-driven, and spending time on "Accounts Receivable" feels like a waste of valuable billable hours. By using InvoiceChasr, you can set up a sequence that starts 7 days before the candidate's start date, ensuring the finance team is ready to pay the moment the placement is confirmed. It keeps your relationship with the hiring manager focused on the next placement and the long-term talent strategy, rather than the administrative details of the last one.

Professionalizing the Agency Relationship

Using a professional, automated chasing system signals to your clients that your agency is a sophisticated business with disciplined financial operations. This builds respect and ensures that your invoices are treated with the same priority as their other major service providers. It allows you to focus on finding the best talent while the system ensures you are compensated for the value you've delivered.

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