Top Echelon Contracting Offers Free Conversion Fee Agreement Language for Recruiters

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The language can be added to client contracts to ensure the recruiter receives a conversion fee if or when a contractor goes direct.

Conversion Free Agreement Language
The conversion fee language assured the recruiter that he or she would also be able to collect a ‘perm’ fee in addition to what was earned during the contract period.

Top Echelon Contracting (TEC) is offering free conversion fee agreement language that recruiters can add to their client contracts if they run their own back-office. Recruiters can request the conversion fee agreement language through TEC’s Web site.

In addition to the money recruiters earn for every hour a contractor works, recruiters have the opportunity to earn an additional conversion fee when a client decides to hire a contractor directly as a traditional employee. To ensure that the recruiter gets a conversion fee in these situations, they should include a conversion fee agreement in all of their client contracts, even if the assignment is not considered “contract-to-direct,” said TEC President Debbie Fledderjohann.

“You never know when a contract assignment will go direct,” Fledderjohann said. “We have helped recruiters place contractors for 20 years. During that time, we have seen many situations where a client absolutely loved a contractor and wanted to extend a direct-hire offer. The conversion fee language assured the recruiter that he or she would also be able to collect a ‘perm’ fee in addition to what was earned during the contract period.”

Companies are slowly getting back to hiring, but as the economy remains uncertain, they are still very cautious about making the right hiring decision, Fledderjohann said. Contract-to-direct(sometimes referred to as temp-to-direct) arrangements allow them to “try-before-they-buy” so they can make sure they have the right person before they make the direct-hire commitment.

TEC, which was established in 1992, provides contract staffing back-office services to recruiters. TEC becomes the W-2 Employer of Record, handling all the financial, legal, and administrative details associated with a contract placement.

When TEC becomes the back-office for a recruiter, they handle all of the contracts. In these situations, TEC works closely with the recruiter to be sure the conversion fee is customized to meet that recruiter’s specific goal. TEC does not take a percentage of any conversion fee earned by a recruiter for a contract-to-direct situation.

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Julie Graff
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