Backdoor Hires and Their Effect On Your Business
“Backdoor hires” is a well known term in the staffing and recruiting industry. However, other industries may not be aware of the implications of doing it. It can have big effects on your business and cause a lot of trouble regardless of whether you’re the perpetrator or the victim of it. But before getting into the problems that backdoor hiring presents, we’ll first answer the question:
“What exactly is a backdoor hire?”
What is A Backdoor Hire?
Simply put, a backdoor hire is a job candidate that was hired from a contractor without notifying the contractor of the hiring. What this means is that the company that hired the candidate is cutting out the middleman and refusing to pay their fee. This can cause a number of effects on both the contractor and the hiring company which we will get into next.
Effects of Backdoor Hires On Business
We’ve previously mentioned that backdoor hiring can have a negative effect on your business. If you’re not convinced then keep reading to find out what you might get into if you do decide to backdoor hire from a staffing contractor.
Threat of Legal Action
One of the biggest problems you’re going to face if you decide to backdoor hire a candidate is the threat of being sued. Being sued is a time consuming process that can be a problem because of how it takes your attention away from what you’re doing. The worst part is that you usually have a contract with the staffing company. There are loopholes that you can exploit in some of these contracts, but the vast majority will be bulletproof and will have you on the losing side from the very beginning.
You Lose More Time and Money Compared to Simply Just Paying The Fee
Saving a little bit of money on the hiring process might seem like an attractive option over having to pay another company to find a candidate for you. However, what you don’t realize is how time consuming and expensive it will be for you to try and fight a legal battle if they decide to take the issue to court. You have to pay for various fees, and spend valuable time on the case. What’s worse is that you have a very high likelihood of losing the case if the company’s contract is any good or if they have a specialized collection company helping them.
Collections Companies Start Assisting the Hiring Company
Dealing with the staffing or recruiting company can be difficult alone. However, if you have to deal with both the staffing company and a debt collector then you might be in trouble. Debt collectors or collections companies are usually called in once the problem has escalated enough to warrant it.
Collections companies specialize in finding backdoor hires, and can even win the case for their client even before the case goes to court. Decades of experience collecting the same type of debt and various backdoor technology solutions that can make any debtor shudder in fear would make it that much more difficult to win a case against them.
Final Thoughts
Backdoor hiring may be an enticing option for any business, struggling or otherwise. However, you should make sure you know the risks if you do decide to do it.
