“We already knew this candidate”: who’s entitled to the fee?

You send your client a strong project manager. Two hours later, the reply comes in: “We already know them.” That’s all the explanation you get.

Let’s not be naive about it: sometimes it’s true. Another agency got there first, or the candidate applied directly. Then you’re not entitled to a fee, and you say so. But very often the client knew a name, not a candidate. The difference lies in what you can prove, and you sort that out before you introduce anyone.

When the client really did know your candidate

Usually yes if the client had a live process with the candidate shortly before your introduction. They had scheduled an interview or already held one. They got the CV from another agency, with the candidate’s agreement. Or the candidate applied for the vacancy themselves, before you introduced them.

Usually not if their name is only in an old database. They applied for a different role two years ago, the managing director knows them from a networking evening or they’re simply on LinkedIn. Then the client knew a name, but there was no process. You’re the one who got the candidate moving.

What counts in the end is what your terms and conditions say. Without an agreement, it’s your word against theirs.

What you sort out upfront

Ask your candidate where they’re already in process. Before you introduce them: “Have you already applied to this company yourself, or has another agency already put you forward there? And when?” Note the answer in your CRM. If they say yes, you know before your client tells you.

Ask for their agreement, client by client. Only introduce them to a company they’ve said yes to, and note that down too. A candidate who knows where you’re introducing them won’t apply there again themselves. And if another agency sends their CV without their agreement, you have the strongest case.

Put a duty to notify in your terms. If the client already knows the candidate, they notify you straight away, for example on the working day after your introduction. With proof: an interview invitation or an introduction from another agency, from shortly before. If they don’t notify you, your introduction stands.

Introduce by email, with a date. Name, role and date, saved in your CRM. Then your date is fixed, whatever the client says.

The method: what to do if the client says they already knew the candidate

Six steps, from the first reaction to an agreement in writing.

01Stay calm and ask for proof

“Could be. When was that, and who was it through?” You’re asking for a date and a channel, not an explanation. Don’t bring up your fee in that first conversation yet. Without proof, it’s a feeling, not a fact.

02Call your candidate

Did they apply themselves? Did another agency put them forward, and when? Did they agree to that? Sometimes it’s a misunderstanding, sometimes they changed their mind, sometimes another agency sent their CV without asking. You need to know before you talk to the client again.

03Put the dates side by side

Your dated email against the client’s proof. Was there a live process, within the period in your terms? An application from three years ago for a different role isn’t a live process.

04Decide what you’ll do

If the client really had a live process before you came along, let it go, and say so. That’s how you earn trust. If your introduction was the first, or if what they knew is an old name in a file, calmly explain that your introduction set the process in motion, and refer to your terms. Did two agencies put the candidate forward, both with their agreement, and is it unclear who was first? Then call the other agency. A shared fee beats a fight.

05Don’t let your candidate suffer for it

A discussion about the fee must never cost your candidate the job. A client who hesitates because two agencies are squabbling sometimes picks no one. And a candidate who loses an opportunity that way doesn’t forget it.

06Put it in writing

Confirm by email what you agreed. If the candidate goes to interview through you, your introduction stands, and then it’s in black and white too.

An example

Say you introduce an estimator to a contractor on a Tuesday. On Wednesday, the HR manager replies: “We already know them, they’re on our system.” You ask since when. It turns out to be an application from three years ago, for a different role, with no interview. Your candidate confirms they haven’t heard from the company since.

You calmly explain that there was no live process and that your introduction stands, as set out in the terms they signed. The client invites them in, two months later they start and your invoice gets paid.

It would have been different if another agency had introduced them a week earlier, with their agreement. Then you let it go, and you say so straight away.

Checklist

• You ask every candidate where they’ve already applied or been put forward.
• You don’t introduce anyone without their agreement for that company, and that’s in your CRM.
• Your terms say the client notifies you straight away of a candidate they already know, with proof.
• Every introduction goes by email, with a date.
• If the client says “we already know them”: ask for proof, call your candidate and put the dates side by side.
• Your candidate never pays the price for the dispute.

Frequently asked questions

Who’s entitled to the fee if two agencies submit the same candidate?

In practice, usually whoever put them forward first, with their agreement. At many clients, a CV sent without consent doesn’t count. It does depend on the terms the client signed with each agency.

Does a candidate from the client’s own database count?

Only if there was a live process: an interview, an invitation or a recent application for that vacancy. A name in an old file isn’t a process. State in your terms which period you use.

What if the candidate applied again themselves?

If that was before your introduction, the client knew them through that application. If it was after, your introduction stands. Ask your candidate upfront and you’ll know.

Should I accept a shared fee?

Sometimes, yes: when it’s unclear who was first and both agencies had the candidate’s agreement. A shared fee and a happy client are worth more than a fight that costs your candidate the job.

This is general information, not legal advice. What counts is what’s in your terms and in your client’s.

Does the client end up hiring your candidate behind your back later on? Then read The client hires your candidate behind your back.

Sources

• Colin Cottell, Does the one who pays the piper really call the tune?, Recruiter, 2012.
• Katie Paterson, How to win the battle for candidate ownership, Firefish.