This week on T3 I take a look at the specialized staffing vendor software technology called Hirabl. Hirabl is designed to help staffing companies catch revenue they missed because a client, or potential client, hired one of of the staffing vendors candidates, but never paid the fee. What!?!
Yep, it’s actually a fairly common occurrence in the staffing and talent acquisition game. It can happen a number of ways. I don’t want my talent acquisition brother and sisters thinking I’m called them cheats. 99.9% of are completely above board, but .1% are sneaky!
Here’s how it all might go down:
An organization is contacted by a staffing company to help on an opening. A good staffing company will insist on a signed contract. The get the signature and begin working. The organization decides not to move forward with any of the staffing companies candidates. Both parties go on their way. This happens a lot in the staffing world.
Fast forward six months down the road and the organization has the same opening. They post the opening and a candidate comes into their ATS. The same candidate the staffing company presented six months prior. By contract, that candidate is still ‘owned’ by the staffing firm. The organization hires the candidate, but never thinks about paying the staffing company. The staffing company has moved on and doesn’t even realize you hired their original candidate. By contract the organization still owes the fee, but it’s rarely collected, because on one comes asking!
Hirabl has technology that goes out and through social profiles and your internal data, finds these circumstances. You then get an alert, so you can go ‘remind’ the organization you presented the company to that they indeed owe you some money. Depending on your volume, Hirabl, on average, is finding hundreds of thousands in lost fees.
You need a couple of things to make this successful: 1. Good, signed contracts; 2. Good data for them to search on. Most staffing companies, using a decent ATS, will have the data. The contract question might be more difficult for some. In my organization we don’t do anything without signed contracts, so we would be good on that front as well.
I wanted to write about this for a couple of reasons. First, I know a lot of staffing folks who read my blog that can use this and get back some lost revenue. Second, I wanted those corporate talent acquisition folks to know that staffing vendors are getting more sophisticated, and some things that you might have gotten away with years ago, will soon be coming to an end.
Be careful signing a staffing contract. Usually, most staffing vendors are going to ‘own’ candidates they submit to you for at least twelve months. That means if you hire one of those folks, even if that candidate came to you on their own, you contractually are liable for that fee. That’s why you should be signing a ton of contracts. Find a few good firms. Work with them closely, and you won’t have any surprises.
You can better believe I’ll be trying Hirabl! We do a ton of volume, and as much as I would like to think no client hired one of our folks, I know we’ll find some where it happened. Stay tuned!
T3 – Talent Tech Tuesday – is a weekly series here at The Project to educate and inform everyone who stops by on a daily/weekly basis on some great recruiting and sourcing technologies that are on the market. None of the companies who I highlight are paying me for this promotion. There are so many really cool things going on in the space and I wanted to educate myself and share what I find. If you want to be on T3 – send me a note.