Every once in a while, we make changes to the Top Echelon Network Policies. Sometimes those changes are small (most of the time, actually), and sometimes they’re bigger. Our latest round of revisions to the Policies include both big and small changes.
I’ll be mentioning the bigger changes specifically in this issue of The Pinnacle Newsletter Blog. However, I’m going to bypass the smaller changes, and I’m doing so because they do not significantly alter the wording or spirit of the Policies. In the vast majority of instances, these changes were made to make the Policies more grammatically correct in terms of punctuation and usage (first person vs. third person, for example).
To point out each and every time we changed “us” to “Top Echelon Network” would probably bore you to tears . . . so we’re not going to do it. However, we do want to point out the following, more important changes to the Top Echelon Network Policies. The specific policies we’ll be addressing are Policy #3, Policy #5, Policy #9b, and Policy #11. For each of these, I’ll present an “Overview,” the “Old Version,” and the “Revised Version.” This is a lengthy blog post, but please bear with us. We want to communicate as clearly as possible these major changes.
Policy #3: 3-Way Splits
OVERVIEW:
The verbiage “does not encourage” has been replaced with “prohibits” as it relates to 3-way splits unless prior written consent from all parties is obtained.
OLD VERSION:
Top Echelon Network does not encourage 3-WAY SPLITS with recruiters outside of Top Echelon Network, but does not prohibit Members from participating in them.
REVISED VERSION:
Top Echelon Network prohibits 3-WAY SPLITS with recruiters inside or outside of Top Echelon Network without prior written consent from all parties involved, including Top Echelon Network.
Policy #5: The Complaint Procedure
OVERVIEW:
The Complaint Procedure was revised to provide added detail to Phase 2 and Phase 3 of the policy. Two sections of the policy were consolidated, which were, “The Negotiations, mediation, and arbitration” section with the “I don’t agree with Top Echelon’s decision or the EAB’s decision” section. Lastly, the location and terms of arbitration and mediation were updated.
OLD VERSION:
I don’t agree with Top Echelon Network’s decision or the EAB’s decision
Once Top Echelon Network makes a decision on a Phase #2 dispute, the decision is final, and whatever action Top Echelon Network deems necessary will begin immediately upon the announcement of the decision. The recourse available to a recruiter who does not agree with the Phase #2 decision is as follows:
1. Pay the $1,500 processing fee and request that your dispute be re-opened, escalated to Phase #3, and heard by the Top Echelon Network EAB.
2. Get the other recruiter to agree to resolve the dispute via outside formal arbitration.
3. Hire an attorney and pursue it through the appropriate court system.
Once the Top Echelon Network EAB makes a decision on a Phase #3 dispute, the decision is final, and whatever action the EAB deems necessary will begin immediately upon announcement of the decision. The recourse available to a recruiter who does not agree with the Phase #3 decision is as follows:
1. Get the other recruiter to agree to resolve the dispute via outside formal arbitration.
2. Hire an attorney and pursue it through the appropriate court system.
Negotiations, mediation, and arbitration
If a dispute arises between any Members utilizing the services of the online system, the parties hereto shall use their best efforts to settle such disputes, claims, questions, or disagreements. To this effect, they shall consult and negotiate with each other, in good faith, recognizing their mutual interests and attempting to reach a just and equitable solution satisfactory to both parties. If a solution cannot be reached within a period of sixty (60) days, the parties agree to settle the dispute in an amicable manner by mediation administered by the American Arbitration Association under its Commercial Mediation Rules, before resorting to arbitration. Thereafter, any unresolved controversy or claim shall be settled by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. Any such arbitration will be conducted in a mutually agreed upon city having an American Arbitration Association office, or if no agreement on locale can be reached, the arbitration will be conducted in Cleveland, Ohio. The arbitrators shall award to the prevailing party, if any, as determined by the arbitrators, all of its costs and fees. “Costs and fees” means all reasonable pre-award expenses of the arbitration, including arbitrator’s fees; administrative fees; travel expenses; out-of-pocket expenses such as copying, telephone, court costs, and witness fees; and attorneys’ fees.
REVISED VERSION:
Finality of Top Echelon Network’s decision or the EAB’s decision
If escalated, after the Top Echelon Network EAB makes a decision on a Phase #3 dispute, the decision is final, and whatever recourse the EAB deems necessary will begin immediately upon announcement of the decision. A recruiter who does not agree with the Phase #3 may seek to resolve the dispute via outside formal mediation or arbitration exclusively between the recruiters to take place in Canton, Ohio, administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules, and judgment rendered by the mediator(s) or arbitrator(s) may be entered in any court of jurisdiction. Additionally, the award to the prevailing party, if any, shall include all costs and fees. “Costs and fees” means all reasonable pre-award expenses of the arbitration, including arbitrator’s fees; administrative fees; travel expenses; out-of-pocket expenses such as copying, telephone, court costs, and witness fees; and attorneys’ fees.
Any disputing involving Top Echelon Network as a party must be resolved in accordance with the requirements set forth in the Top Echelon Network Service Level Agreement.
Policy #9b: Candidate Ownership After a Candidate is Placed in a Direct-Hire Position
OVERVIEW:
Under the “Spirit of the Policy” section of this policy, the wording “strongly encourage” was replaced with “requires.”
OLD VERSION:
Therefore, we strongly encourage the job order agency to confer with the original candidate recruiter about the situation, and we suggest that you both share ownership in the candidate. That is, if either of you place the candidate again, you both agree to equally split whatever dollars your firm earns on that next placement of this candidate. We have seen other recruiters deal with these situations in this way, and it appears to work well.
REVISED VERSION:
Therefore, Top Echelon Network requires the job order agency to confer with the original candidate recruiter about the situation, and share ownership in the candidate. That is, if either Preferred Member places the candidate again, both firms agree to equally split any placement dollars earned. Historically, this is the best solution for other Preferred Members in such situations.
Policy#11: Placement Fees, Payment Terms, Refunds, Fall-offs, and Guarantees
OVERVIEW:
Throughout the policy we replaced phrases like “should be agreed upon” and “strongly advises” to “must agree” or “requires.” Also, additional explanation of the “Fall-off” section has been added.
OLD VERSION:
Fee schedule
The fee schedule used in a placement should be agreed upon by both agencies prior to an offer being extended to the candidate, preferably in writing.
REVISED VERSION:
Fee schedule
Both agencies must agree in writing on the fee schedule to be used in a placement prior to extending an offer to the candidate.
OLD VERSION:
Fall-offs and replacement guarantee
In the event a candidate quits or is terminated (for any reason) during the guarantee period and the job order recruiter’s guarantee is to replace the candidate or refund the money, Top Echelon Network considers this placement a “fall-off.” The agency with the candidate and Top Echelon Network are to refund the proper percentage (normally 100%) of their portion of the fee to the job order recruiter immediately. It is then the sole responsibility of the job order recruiter to replace the candidate, return the fee to the client, or work out some other arrangement with the client. The agency supplying the originating candidate is not entitled to keep its fee, because the placement was a fall-off and its candidate did not work out.
REVISED VERSION:
Fall-offs and replacement guarantee
Top Echelon Network Members agree to honor the guarantee period and refund/replacement policy that the job order recruiter executes with the client. In the case a guarantee refund/replacement policy is not clearly executed, Top Echelon Network considers a placement to be a “fall-off” in the event a candidate quits or is terminated (for any reason) during the guarantee period and the job order recruiter’s guarantee is to replace the candidate or refund the money. Any act of resignation within the guarantee period qualifies as a “fall-off.” The candidate recruiter and Top Echelon Network must refund the proper percentage (normally 100%) of their portion of the fee to the job order recruiter immediately when a “fall-off” occurs. It is then the sole responsibility of the job order recruiter to replace the candidate, return the fee to the client, or work out some other arrangement with the client. The agency supplying the originating candidate is not entitled to keep its fee, because the placement was a “fall-off” and its candidate did not work out. See Section, Guarantee period and refund/replacement policy.
Remember, you can view the Network Policies by clicking on the appropriate link in the Members’ Area. That link is located on the left-hand side of the page, directly under “Alerts Management” and above “Frequent Placer Program.”
As always, I want to thank you for your commitment as a Preferred Member recruiter in this Network and for abiding by these Policies in the spirit of making split placements for the purpose of growing your business.
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330.455.1433, Ext. 172
MDemaree@TopEchelon.com
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