Recruiting information technology personnel has been increasingly challenging during the last ten years. As technologies have proliferated, the need for personnel familiar with development, implementation and management of these technologies has increased. Many IT organizations turn to IT staffing firms and recruiters to address this need.

The recruiting agreement between the staffing company and the IT customer organization should establish the framework for a cooperative relationship addressing the legal risks of both parties. A key challenge in the agreement is defining the services to be provided by the recruiter, as well as customer payment obligations.

Recruiter services may include only resume sourcing and referral. Alternatively, a more engaged partnership with the recruiter usually calls for greater due diligence on candidates. The Agreement should specify the exact services required in qualifying and referring candidates to the IT organization for consideration.

Payment obligations should be correlated to the services rendered. Resume referrals justify a minimum fee structure, while more pro-active involvement by the recruiter suggests a higher fee. These fees may be contingent on hiring the referral, or structured as a fixed payment or time and material billing.

The factors related to the contingent fee obligation should also be carefully analyzed. Volumes of resume referrals from multiple recruiters risk multiple fee claims. When engaging such services be sure to establish criteria for fee sharing or preferences.

Employee pirating can also be a risk when engaging the recruiter. Often, the best candidate for placement is the person just placed. Be sure to leverage the terms of your recruiting agreement to minimize the risk.