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General staffing agreement form

what's going on guys it's been hey thanks for checking out my channel once again if you are not a subscriber currently please hit the subscribe button down below I would truly appreciate you and if you enjoy the content in the video definitely smash that like button at the end or any of my videos for that matter so today by specific requests we're going to be doing a video on contracts recruiting contracts specifically someone requested this in the comments yesterday and I know that it's a really important topic and a lot of you are probably wondering about how you set up a recruiting contract and how you actually executed with your clients what you need in it what sort of verbage it needs to be in there what sort of clauses what protects you what's to your advantage what's to your disadvantage so these are really important things because ultimately this contract is what you have to stand on at the end of the day when you hire an employee for a client so we're gonna go screenshare we're going to go into my laptop I'm gonna show you two separate contracts I'm going to show you one direct hire contract and I'm going to show you also a contract worker contract so like someone that's attempt to hire or contract to hire however you want to word it it's worded many different ways but one will be a direct hire one will be a contract contract and then you can cut take a look you can basically rip off exactly what's in it you know you can use the verbage but obviously I'm gonna be showing you my specific contracts not with any client names or anything like that but just the general clauses and verbage that are in there I'd like to preface preface this by letting you know that these are the exact contracts that I've executed with clients to do one hundred and thirty six thousand last year and 2018 in six months so these contracts work these are exactly what I've bided by with my clients and they have all the clauses and everything necessary for you to operate there are a few things that may be missing or a few things that I might be adding soon to these contracts so by no means are these like legal advice contracts or am i giving you like the absolute bread-and-butter winter contracts so don't take these to the bank read them out yourself just use them for informational purposes only you know I'm not you know saying these contracts are 100% valid and will stand up anywhere because I'm not going to stand behind that so they've worked for me they're my contracts but I will show you what they look like you construction yours out how they need to be because your clients might even request specific clauses and their contracts and things like that so without further ado let's go right in my computer and I'll see you guys on the other side all right guys so we're inside my computer right now and as you can see I have two contracts pulled up on the screen one is a temporary placement or contract worker contract the other is a direct hire contract so I'm going to go through both of them you know just give you the clauses give you the basic elements of each and then you know just kind of lay them all out and what's necessary and what's not necessary and then I can you know maybe provide you with a way to get a hold of these once we're done but let's go right into the direct hire contract so this is the the contract that I utilized specifically I've removed and redacted all names and specifics and anything that would Docs me but this is your basic direct hire contract so you're going to want to put your logo up top put a logo somewhere in the corner just throw it up there it's very professional your company name and the clients name and then put your name and then put your title so in many videos I've obviously told you before that I'm a big fan of either principal founder or president I utilize presidents so that's what my contracts say but you can go your own style on that so I I specifically and explicitly put agreement to direct hire via agency this just puts everybody on the same page that they know that this contract is a direct hire contract you know between your agency and their company so the basics of the agreement are kind of laid out in the first paragraph the agreement constitutes the relationships and commitments between insert your company name and and then create a parenthesis saying agency and their company name and then create a parenthesis saying the client so throughout the rest of the contract you can refer to the agency the client and we'll know via this paragraph who's who does that make sense so you can basically just title your you know who the company is and who the client is and then they'll know from then on forward when you refer to things like you know later on here client they'll know exactly that refers to the client so anyways the agency is tasked with sourcing vetting prioritizing and organizing candidates per the clients need the client may request specific conditions be met by candidates before they're screened bla bla bla I'm not going to read this through and through I'm just going to go through it you know piece by piece so this just kind of outlines basically what we're going to be doing and what we will do in general for them and then we go into specifics so I adhere that the client will have a minimum of three weeks after we send them a candidate to tell us whether or not they're going to hire that candidate so that we can utilize them for another client if we you know a client that needs them I haven't here that once they've chosen a specific candidate the client of themselves must notify us first prior to notifying the actual this is wrong it's a candidate prior to notifying a candidate of their selection for hire and the rate of pay must be disclosed by email in written format to the agency so that we can record that and have that on file this is extremely important you need to know you know who's getting hired what their start date is and what their exact rate of pay is if you're on ten percent terms you're going to need to calculate that so you need to record when they started and their pay rate because these things are going to come back later on because you're going to be on terms that you need to record and set so you know when an invoice and we'll go over invoicing in a separate video but then I explained the fee structure here so as per staffer norms the client will pay for services rendered and I explained what all we're doing for a fee of no less than ten percent of the gross estimated annual earnings of the employee that's an important statement so the gross estimated annual earnings of the employee this just means their annual salary or if this person is hourly most likely you're hiring hourly people you know you're gonna basically take their hourly rate then you're going to mark that times 160 hours a month which is a 40-hour workweek then you're going to times that by 12 to create the entire year so there's 2080 hours in a year and I give an example here if someone's being paid $20 an hour this would equate to a 40 $1,600 salary and 10% of that would be basically $4,100 and I share that here so I lay this out in a simple example them so we're all in the exact same page as far as what the fees gonna look like so there's no surprises there's no you know guessing at what someone's gonna pay you know if you hire someone at $18 an hour their fee is gonna be three thousand four hundred and fifty six dollars exactly so they should know that they should be able to do the math just like you guarantee Clause this is extremely important so the agency is gonna guarantee its candidate this is a very big selling point when you first start an agency and you want to grab clients and ongoing you're always gonna wanna have a guarantee period everybody does it just matters how long it is so for general labor and more menial tasks I set up a 30 day guarantee clause or at least that's where I start negotiating if they push me up to 60 I'm I try to meet them in the middle if somebody wants to do business only on a 90 day well I just do the numbers and see if it's worth it and see if the candidates you know most likely to stay around for that long and then I'll give them that so this is negotiable but guarantee clause lets them know that if the candidate it's their employment so I say uh so I say if a candidate leaves vacates or otherwise quits their employment with the client the agency will backfill the position with another equally qualified candidate within a reasonable time frame so this is extremely important why because you're not saying refund you're saying backfill you're not giving any money back you're giving them another candidate so if you're hearing me clearly how much cheaper is that defined them another candidate rather than just give them back $4,100 a lot cheaper so every single time you're always want going to want to guarantee by way of back filling this is the last clause I have in here it's the candidate engagement and ownership clause so basically this means who finds the candidate first and who gets the fee I mean you know so basically when you set up an agreement with a client you're going to be searching on their behalf for candidates and you're going to start that right away as soon as this is signed now a candidate could be ignorant and talk to you and engage with you and you could submit the resume and then two days later since they haven't heard back they go on their their website of the actual client and they apply online some clients believe that that means oh they're already applying with us sorry we can't pay you a fee no no the candidate engagement ownership Clause negates all of that so this basically just says that as soon as we engage with a candidate meaning talked to them by a phone email if they apply to one of our ads we've put up on Craigslist indeed whatever it might be at if they send us a text message whatever it might be an email anything we own that candidate we have engaged with them we are representing them and at that point forward they are a billable candidate for us meaning we receive the fee if you decide to hire them this is extremely important to have this in your contract because otherwise you're essentially giving away your rights so that the client can basically say anything they want and say well it's not in the contract doesn't matter we started talking to the guy he wants to work with us we're hiring them so I put in here furthermore you know that this clause if necessary is to be qualified by either party agency or client to just provide genuine proof or evidence so you can use emails text messages you know like that and if the matter is not to be settled personally between the client and the agency then it can go to you know I live in Washington so I set the Washington State Arbitration Association you would just want to put whatever your state's Arbitration Association is because you would basically move this upward and have an arbitration about it they would clearly see that this is in the contract and that you went out at the bottom here at the end you're gonna want signatures of course none of this is valid unless it's signed so you can't just send them this and have this be valid the agency needs to sign it meaning you need to sign it and the client needs to sign it again I've said about ten times in my videos that every single person starting a recruiting agency should utilize DocuSign you're all gonna be working virtually nobody wants to take this paperwork over to the client and make them sign it or have them sign it and you sign it and/or print it off and scan it and all that BS basically utilize DocuSign it allows you to just pop a signature icon right in here for the client pop one in here for you you sign it it sends an electronic signature over to them they sign it and bada-bing bada-boom you're done you got your direct hire agreement in place and you can go to town and that's that so let's pop out of that one let's go into the temporary hire contract so this is much more simplistic it's extremely straightforward again I've redacted everything so you put your company name in here and then I title it temporary placement service terms agreement with put in the client name I say something like thank you for the opportunity provide staffing services your company the following terms are below how contract staffing works I mean you know these are other videos we can do but you know you're basically going to be paying the employee a certain rate and then you're going to be billing the company a bill rate for providing that employee so this employee will work directly under you as a w-2 employee that's how contract staffing works and you will then be billing the company hopefully a really good margin so maybe hire somebody at fifteen bucks an hour and build a company at twenty eight bucks an hour mmm that's that's a whole other video but you need to do the math on your bill rate make sure that you're covering your burden and all those sorts of things and making profit most importantly so this paragraph basically explains you know how we're gonna do that so we're gonna the bow rates can include their semi and all their taxes and everything related to what what they'll need acknowledgments this is just a simple statement basically kind of reiterating what's already been said I've taken this from a different contract and utilized it so I mean I can't tell you I'm not a lawyer you know exactly what the acknowledgments clause is about but it just kind of states exactly what this states here overtime clause so the overtime Clause says that please note that overtime will be both at one point five times the bill rate for any hours worked consistent with where I live Washington says overtime regulations Monday through Sunday so you can you can just rip this off and utilize this exactly a but in put your state and then conversion so the conversion Clause this basically is negotiable so you're you're always going to be a negotiation when you set up a contract to hire type of agreement so my conversion contract for this particular client that I was working with stated that actually after 480 hours or three months worked whichever came first the employee may be brought on to your company in a permanent sense meaning they can convert them they can take them as a full-time employee they can start paying them and they would then be off your books and not making you any more profit this is actually bad you would rather have contract employees working you for you forever because they're basically just residual income for free you know I mean the way I mark up my guys they're making you know I'm Marge and I make a huge margin on every single contract to play that I have so you know some people like to set up three months conversion terms the best way to do it is probably six months and the most agreeable terms are six months usually so then I put we look forward to working with you if you have any questions regarding this you can contact me at my phone number or my email and then this agreement is signed and bonded via DocuSign and then of course again get DocuSign three hundred bucks a year put their signatures here you sign it electronically so that's the cut the contract higher contract and this is the direct hire contract both of these contracts I utilize with clients currently pretty much the exact verbage is in them and you know I've been using them for all my clients and like I said in 2018 I did a hundred and thirty six thousand and six months just using these contracts alone this is just enough to get you up and running so if you think that you're you know needing a lawyer four thousand dollars two thousand dollars to build you out a whole contract structure and stuff you're wrong but these are the ones I use so I will pop out and I'll see you guys on the other side all right all right guys so I hope that wasn't like the most boring video you ever watched but contracts are boring but they're important so I thought I'd dig deep and kind of give you my contract hire contract and my direct hire contract so that's what I use that's what I've utilized all last year in 2018 and I'm still using currently now obviously every DAC did a bunch of stuff but that's the exact contracts that I'm used to generate over a 100 36 K when I first started in the first six months and ongoing now through 2019 so I would just you know take those for what they are again as a caveat this is not professional legal advice I'm not a lawyer I did not have a lawyer draw these up so just for your information you know don't think that anything is ironclad I just want to give you an example of what you can use to write up a contract and make it pretty sturdy sturdy enough that you can actually you know hold up if you have a disagreement or if you have some certain kind of hang-up with a client or a candidate you know that you need to decipher so just as a side note contracts are only signed with clients you don't necessarily need to sign contracts with candidates there are certain things that you can do with candidates like the guarantee clause that I put about ownership and engagement you can have a candidate sign like an owner ship contract with you saying like we call it right to represent or consent to represent meaning your agency has the consent to represent them so that you know when you approach the company and they say well we found them first or something you can actually you know go back and say nope we have consent to representing right here so those are a couple things but anyways guys that's pretty much it I know that was boring enough so I'll spare you now I'll catch you all on Sunday I hope you're having an awesome weekend and I hope that was valuable comment in the comment section if that was valuable please let me know and I will catch you all on Sunday all right take care