Yes deposits is a negotiated entity. In recruitment there is no deposit. It is not done in our industry. We have to vet the client and make the call whether they are "good clients" . We work on a 3 out of 4 rule i.e. if T&C's are signed and a number of other criteria are met we then do the work, which might take up to two weeks. Yes we stand the risk of a client not paying for a candidate once sourced - we have to deal with that when it happens - we have had that happen only twice in 13 years.I am not sure how recruitment works, but how do you handle a new client who decides to no longer employ a successful candidate after you have spent hours, perhaps weeks meeting possible candidates and researching their backgrounds? Its a very specialised job so you could not pull the info off your existing database.
In the past companies used to ask for deposits when they have to lay out their own capital to either buy the product and / or manufacture the product, which is totally understandable , but unfortunately a lot of people will not give a deposit if there is no manufacturing to be done i.e. in this case it is only time. It is a difficult thing because deposits are also a signal of a new company starting out who does not have the cash flow to operate and then operates on clients deposits to do the work.
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