CPC Contract Negotiation & Placement Agreements 2

Question 1

In a temp-to-perm conversion, a client who directly hires a temporary worker typically owes the staffing agency:

Accepted Answer

A conversion fee as specified in the original staffing agreement

Answer

Most staffing agreements include a conversion fee clause that requires the client to pay a fee if they directly hire a temporary worker, compensating the agency for sourcing and placing the individual.

Question 2

Which of the following is the most important element to define in a placement agreement to prevent fee disputes?

Accepted Answer

The exact definition of what constitutes a successful placement

Answer

Precisely defining what triggers a fee obligation — such as the candidate's first day of work or signing an offer letter — prevents disputes over whether a placement was 'completed' when issues arise.

Question 3

A 'split-fee arrangement' in recruiting refers to:

Accepted Answer

Two recruiting firms sharing a placement fee after one provides the job order and the other provides the candidate

Answer

In split-fee recruiting, one firm holds the job order and another firm provides the candidate; they agree in advance to split the client fee (commonly 50/50) when placement is made.

Question 4

A counter-offer clause in a placement agreement is designed to protect the recruiter by:

Accepted Answer

Entitling the recruiter to a full fee even if the placed candidate accepts a counter-offer and does not join the client

Answer

A counter-offer clause ensures the recruiter is paid for their work even if the candidate declines the client's offer because their current employer counter-offers, since the recruiter fulfilled their obligation by presenting a qualified, interested candidate.

Question 5

An indemnification clause in a staffing agreement protects the client by requiring the staffing agency to:

Accepted Answer

Hold the client harmless from claims arising from the agency's negligent actions or omissions

Answer

Indemnification clauses shift financial liability for certain claims — such as those arising from the agency's misrepresentation of a candidate's qualifications — from the client to the staffing firm.

(CPC) Certified Personnel Consultant Practice Test

(CPC) Certified Personnel Consultant Practice Test

CPC Contract Negotiation & Placement Agreements 2