Attached is a sample contingency agreement -this is sent to the potential client along with Information about HPS, and a description of our recruiting services in the body of the email. This document contains:
The entity HPS will be conducting the search for
The position HPS will be searching for
The fee HPS will charge fr the search
The guarantee (usually 120 days from the candidate’s start date -if payment is made on time
The terms of payment -usually, payment is due 10 days from the candidate’s start date
A legal clause if there is any problems collecting payment
Fees: The recruiter can and should negotiate the best fee possible – average is $3500 flat fee, or 10% of the candidate’s annual salary at hire date
Search should not begin until the CA is signed and returned by the client
The agreement is good and continues to be good unless one party terminates the agreement
HPS owns a candidate submitted for one year -this is important to know -If a candidate is presented and the client passes on him /her -but then hire him or her 6 months later, HPS has earned a fee