CPC Contract Negotiation & Placement Agreements

Question 1

In a retained search agreement, the client typically pays the search firm:

Accepted Answer

A portion of the fee upfront before the search begins

Answer

Retained searches require the client to pay a portion of the fee upfront (often one-third), giving the firm dedicated resources to conduct the search.

Question 2

What is the primary distinction between a contingency fee arrangement and a retained search?

Accepted Answer

The recruiter is paid only upon successful placement in a contingency arrangement

Answer

In contingency recruiting, the fee is contingent on a successful hire, meaning the recruiter earns nothing if the client hires through another source or internally.

Question 3

An 'exclusivity clause' in a placement agreement means that the client agrees to:

Accepted Answer

Work with only one recruiting firm for a defined period or position

Answer

An exclusivity clause restricts the client from engaging competing firms or sourcing candidates independently for the covered position or time period.

Question 4

A standard guarantee period in a placement agreement protects the client by:

Accepted Answer

Requiring the recruiter to provide a free replacement if the placed candidate leaves within the period

Answer

A guarantee period (commonly 30–90 days) obligates the recruiting firm to provide a free replacement or refund a prorated fee if the placed candidate leaves or is terminated without cause.

Question 5

An off-limits clause in a staffing agreement typically prohibits the recruiting firm from:

Accepted Answer

Soliciting employees from the client company for a specified period

Answer

Off-limits (or non-solicitation) clauses prevent the recruiter from raiding the client's own workforce by recruiting their employees for other clients during and after the engagement.

(CPC) Certified Personnel Consultant Practice Test

(CPC) Certified Personnel Consultant Practice Test

CPC Contract Negotiation & Placement Agreements