Given how fluctuations affect the world, companies seek ways to reduce costs. Unfortunately, backdoor hire placement has become one of their go-to resources to achieve this.
But what exactly is backdoor hire placement, and how does it work?
In this blog post, we’ll explore what backdoor hire placement is, how it happens, and how it can affect you. Let’s get started!
What Is Backdoor Hire Placement?
Backdoor hire placement, often called “backdoor hires,” occurs when a company hires a candidate previously submitted by a staffing agency but was not initially hired through that agency. It’s a scenario where the staffing agency’s efforts and resources are bypassed, and the client company directly hires the candidate without the agency’s involvement.
This practice can take various forms, such as:
- The client company interviews a candidate sent by a staffing agency but then hires them directly without informing the agency.
- The client company waits until the candidate’s contract with the staffing agency expires and then hires them as a permanent employee.
- The candidate may switch to the client company without involving the agency.
Why Does Backdoor Hire Placement Happen?
Backdoor hire placement can happen for various reasons, which includes the following:
- Cost Savings: Cost savings are a primary reason for backdoor hires. Client companies may seek to avoid paying placement fees or commissions to staffing agencies, which can be substantial. By hiring a candidate directly, they can eliminate these expenses.
- Time Savings: Backdoor hires can also be driven by a desire to expedite the hiring process. Waiting for a staffing agency to find suitable candidates can take time, and some client companies may bypass this process to fill their positions more quickly.
- Candidate’s Choice: In some cases, the candidates may prefer to join the client company directly. They might perceive better long-term opportunities, benefits, or job security with the client company and decide independently.
- Lack of Clear Agreements: Sometimes, backdoor hires happen due to a lack of clear agreements and communication between staffing agencies and client companies. Without a well-defined contract, it becomes easier for a client company to make direct hires without violating any terms.
The Impact of Backdoor Hire Placement
As you already know, backdoor hire placement comes with a number of consequences. Let’s take a look at them.
For Staffing Agencies:
- Financial Loss: Staffing agencies must catch up on placement fees and potential long-term partnerships.
- Reputational Damage: Such occurrences can harm the agency’s reputation and credibility in the industry.
For Client Companies:
- Legal Ramifications: Backdoor hires can lead to legal disputes and potential financial penalties if not handled properly.
- Souring Relationships: It can damage relationships with staffing agencies and limit future collaboration.
For Candidates:
- Uncertain Career Path: Candidates who opt for backdoor hires might miss out on the additional support and opportunities staffing agencies provide.
Conclusion
Regardless of how small or big your company is, backdoor hire placement should never be an option. What comes around goes around. You might be doing good this day, but you’ll never know what happens tomorrow.
Instead, hire your employees legally, even if it comes with costs. Remember that your employees are the best investment you will ever have.
