THE PLACEMENT MANAGER'S LAW QUIZ

By Jeffrey G. Allen, J.D., C.P.C.

Owners and managers are always asking us about managing their offices. So several years ago, we decided to prepare a list of the most common legal and practical questions. Then we surveyed our clients for the answers. This led to the development of The Placement Manager's Law Quiz.

Here it is to help you stay within the law and maximize each desk.  Once you take the PMLQ, you'll see the areas where you are weak.  We all learn best from our mistakes, and we all make them.  I sure did when I managed an office.  So if my secret's safe with you, yours is with me!

Print out and complete the PMLQ under examination conditions, timing yourself for one hour, and circling the answer you think is correct.  Then click the "Answers to Placement Law Quizzes" button at www.placementlaw.com and check your answers.

If you can't figure out why you got an answer wrong, click the flashing red "Jeff's On Call!" button at www.placementlaw.com, and send me an e-mail with your question.

For our purposes, "recruiter" includes any employee.    

Ready?  Begin . . . and GOOD LUCK!

1. 1.  The attribute of all successful recruiters is their: 
   1. a.  Personality.
   2. b.  Love of people.
   3. c.  Self-discipline.
   4. d.  Training.
2. 2.  High-billing recruiters spend an average of __ hours per week in placement activity:
1. a.  30 or less.
2. b.  Between 30 and 40.
3. c.  Between 50 and 60.
4. d.  60 or more.
3. 3.  Basing compensation on the number of job orders taken is:
1. a.  Legal.
2. b.  Legal only if all recruiters are compensated the same way.
3. c.  Legal only if the recruiter is placing in salaried positions.
4. d.  Illegal.
4. 4.  Requiring a certain number of send-outs is:
1. a.  An effective way to generate more placements at any level.
2. b.  Less effective as the level of the opening increases.
3. c.  More effective as the level of the opening increases.
4. d.  Not an effective way to make more placements at any level.
5. 5.  Increasing a recruiter's draw to an amount still below average billings results in a:
1. a.  Higher "red figure."
2. b.  Request to increase it again.
3. c.  Recruiter less likely to leave.
4. d.  Payroll tax savings.
6. 6.  Increasing a recruiter's draw to an amount above average billings results in a:
1. a.  Higher "red figure."
2. b.  Request to increase it again.
3. c.  Recruiter likely to leave.
4. d.  Payroll tax savings.
7. 7.  The best way to train a new recruiter is to give him or her the:
1. a.  Easiest assignments.
2. b.  Most interesting assignments.
3. c.  Highest paying assignments.
4. d.  Hardest assignments.
8. 8.  The best way to re-motivate a high producer who has a drop in billings is to:
1. a.  Give him or her 30 days to "place or race."
2. b.  Discuss the reason for the decrease in production and set progressively higher goals with him or her.
3. c.  Promote him or her to office manager.
4. d.  Send him or her to a sales motivation seminar.
9. 9.  To obtain the most cooperation from recruiters when installing a new procedure:
1. a.  Explain the advantages.
2. b.  Have the office share any increase in work.
3. c.  Give the recruiters time off if it works.
4. d.  "a" and "b" above.
10. 10.  Holding a staff meeting is most effective for:
1. a.  Boosting team spirit.
2. b.  Training in specific recruiting techniques.
3. c.  Encouraging candid criticism.
4. d.  Appointing a committee to survey recruiter compensation.
11. 11.  When presenting a candidate, a recruiter should:
1. a.  Tell the client as much as possible.
2. b.  Tell the client just enough to schedule an interview.
3. c.  Match the qualifications to the "hidden job order."
4. d.  None of the above.
12. 12.  The highest producers tend to be:
1. a.  The least effective managers.
2. b.  The most effective managers.
3. c.  The most effective managers if properly trained.
4. d.  The most effective managers if properly compensated.
13. 13.  The highest producers tend to place:
1. a.  Inconsistently.
2. b.  Consistently.
3. c.  Salespeople.
4. d.  Themselves with a competitor quickly.
14. 14.  The highest producers tend to have a background in:
1. a.  Sales.
2. b.  The industry they serve.
3. c.  Credit and collections.
4. d.  "a" and "b" above. 
15. 15.  Retaining high producers is usually:
1. a.  Hard, since they "glow and go."
2. b.  Hard, since they "smile and dial."
3. c.  Easy, since they "trace and place."
4. d.  Easy, since they "fill and bill."
16. 16.  The most effective way to compensate recruiters is a:
1. a.  Straight salary.
2. b.  Straight commission.
3. c.  Draw against commission.
4. d.  Salary plus commission.    
17. 17.  Using time cards for recruiters is:
1. a.  Required by the federal minimum wage law.
2. b.  Not required by the federal minimum wage law.
3. c.  Not required by the federal minimum wage law, but can protect you if there is an overtime claim.
4. d.  A sure way to create morale problems.
18. 18.  If a recruiter insists on working after hours at home, the search business is liable for overtime pay only if it:
1. a.  Authorized the work in writing.
2. b.  Knew about the work and objected.
3. c.  Knew about the work and didn't object.
4. d.  None of the above, since no overtime pay is required.
19. 19.  If a recruiter insists on a straight commission with no draw, payment of it is:
1. a.  Legal.
2. b.  Legal, as long as he or she requests it in writing.
3. c.  Legal, as long as the business deducts payroll taxes.
4. d.  Illegal.
20. 20.  Compensating a recruiter as an independent contractor (with no payroll deductions) is:
1. a.  Legal.
2. b.  Legal, as long as he or she agrees in writing.
3. c.  Legal, as long as you give him or her a "1099" at the end of the year.
4. d.  Illegal.
21. 21.  When a search business compensates a recruiter as an independent contractor, he or she has:
1. a.  All of the advantages of an owner now, and all of the advantages of an employee later.
2. b.  All of the advantages of an owner now, but none of the advantages of an employee later.
3. c.  None of the advantages of an owner now, but all of the advantages of an employee later.
4. d.  None of the advantages of an employee now, and none of the advantages of an employee later.
22. 22.  If a search business hires a recruiter who is bound by a former employment agreement, it is:
1. a.  Only liable if it knowingly participates in breaching the agreement.
2. b.  Only liable if the participation is in restraint of trade.
3. c.  Equally liable if it knowingly participates in breaching the agreement.
4. d.  Equally liable if the participation is in restraint of trade.
23. 23.   Search businesses have less difficulty enforcing placement trade secrets laws than general services, since they:
1. a.  Recruit employees who work for competitors of clients.
2. b.  Advertise for openings on the internet.
3. c.  Tend to hire experienced recruiters.
4. d.  None of the above.
24. 24.  Which of the following usually occurs when recruiters are assigned specific disciplines?
1. a.  Billings increase.
2. b.  Billings increase, then decrease.
3. c.  Billings decrease.
4. d.  Nothing.
25. 25.  Which of the following usually occurs when recruiters are assigned specific geographical areas?
1. a.  Billings increase.
2. b.  Billings increase, then decrease.
3. c.  Billings decrease.
4. d.  Nothing.
26. 26.  Which of the following usually occurs when recruiters are assigned specific functions (job order solicitation, recruiting, etc.)?
1. a.  Billings increase.
2. b.  Billings increase, then decrease.
3. c.  Billings decrease.
4. d.  Nothing.
27. 27.  If a business pays a commission in excess of __%, it is working for the recruiter:
1. a.  35.
2. b.  40.
3. c.  45.
4. d.  50.
28. 28.  The average new recruiter will work a desk for:
1. a.  1 month.
2. b.  3 months.
3. c.  1 year.
4. d.  3 years.
29. 29.  Which of the following reasons a recruiter leaves is most likely to cause problems for the business?
1. a.  To work for a client.
2. b.  To start a competing business.
3. c.  To work for a competing business.
4. d.  To draw unemployment compensation.
30. 30.  The most common guarantee used by general services is:
1. a.  A full refund.
2. b.  A replacement.
3. c.   A pro-rata refund.
4. d.  A full refund or replacement, at the option of the client.
31. 31.  The most common guarantee used by search businesses is:
1. a.  A full refund.
2. b. A replacement.
3. c.  A pro-rata refund.
4. d.  A full refund or replacement, at the option of the client.
32. 32.  The most common replacement guarantee condition (requirement) is:
1. a.  The promise of another job order.
2. b. "Just cause."
3. c.  Payment of the full fee.
4. d.  A release from liability for the original placement.
33. 33.  "Just cause" means that the client terminates the candidate:
1. a.  Just 'cause it wants to avoid payment of the fee.
2. b.  Just 'cause he or she asked for directions to the restroom.
3. c.  For violating a company policy.
4. d. "a" and "b" above.
34. 34.  "Just cause" is not advisable to use on fee schedules, since it:
1. a.  Encourages a demand for return of the full fee.
2. b.  Is illegal under the wrongful termination laws.
3. c.  Leads to charges of conspiracy with the client to wrongfully terminate the candidate.
4. d.  Does not provide an objective standard.
35. 35.  The most fillable job order is usually for an opening created by:
1. a.  Promotion of the former occupant.
2. b.  Recruitment of the former occupant.
3. c.  A desire of the client to replace the present occupant.
4. d.  A desire by the present occupant to leave the client.
36. 36.  The average time a recruiter should spend discussing a job order with a client is:
1. a.  15 minutes.
2. b.  30 minutes.
3. c.  As long as the average time to fill the opening.
4. d.  Impossible to measure.
37. 37.  A steady client is preferable to a sporadic one, since:
1. a.  It is more likely to pay retainers.
2. b.  It is more likely to make a volume hiring commitment.
3. c.  It is more likely to place job orders for anticipated openings.
4. d.  It is less likely to ask you for reduced fees.
38. 38.  A retainer for a search is:
1. a.  Any agreement to pay any amount prior to a sendout.
2. b.  Any agreement to pay any amount prior to a placement.
3. c.  Really an "obtainer," because you would not work the search without it.
4. d.  Any agreement to pay 1/3 of the fee, before or after the placement.
39. 39.  The most successful search businesses work on:
1. a.  An exclusively retained basis.
2. b.  An exclusively contingency-fee basis.
3. c.  A "blended" retained and contingency-fee basis.
4. d. "a" or "b" above.
40. 40.  Retained search assignments are usually:
1. a.  Easier to fill than contingency-fee ones.
2. b.  As easy to fill as contingency-fee ones.
3. c.  Harder to fill than contingency-fee ones.
4. d.  All of the above, since there is no difference.
41. 41.  If a search business operates exclusively on a contingency-fee basis but is offered a retainer for a more difficult assignment, it should:
1. a.  Accept, since the client will be more serious about hiring.
2. b.  Accept, since it is a gesture of "good faith."
3. c.  Decline, unless the search can be done without taking recruiters away from contingency-fee placements.
4. d.  Decline, unless the contingency fee will be less than the retainer offered.           
42. 42.  When a client proclaims a search business is on its "approved vendor list," it generally means:
1. a.  It pays full fees.
2. b.  It wants to bind the business to its placement service agreement (PSA).
3. c.  It understands the value of exclusive assignments.
4. d.  It won't post jobs on the internet directly.
43. 43.  When a search business discounts its fees, "cash-in" is received:
1. a.  Faster, if the regular fee is crossed out, the discounted fee is written in, initialed, and the  fee schedule is mailed to the client.
2. b.  Faster, if accelerated payment is also required.
3. c.  Slower, because the reduction signals weakness.
4. d.  In about the same time.
44. 44.  The correct response to a client complaining about unqualified candidates is to:
1. a.  Apologize gracefully and forget about it.
2. b.  Listen to the reason and reply after discussing the search with the recruiters involved.
3. c.  Tell the client the requirements are unrealistic.
4. d.  Thank the client for the feedback, but place the job order in the inactive file.
45. 45.  A search business is liable for a corporate raid if it:
1. a.  Is caught recruiting client candidates.
2. b.  Causes an audio of a recruiter training session to be played over a source company's paging system.
3. c.  Works from a source company list provided by the client.
4. d.  None of the above.
46. 46.  A client is liable for a corporate raid if it gives a source company list to a search business that:
1. a.  Is caught recruiting source company employees on the job.
2. b.  Also targets specific employees of the source company.
3. c.  Also targets specific departments at the source company, with instructions on what to say.
4. d.  None of the above.
47. 47.  If a search business places a candidate, then recruits him or her after 90 days, it is:
1. a.  Legal.
2. b.  Legal if the candidate initiates the contact.
3. c.  Legal if the client didn't pay the fee.
4. d.  Illegal.
48. 48.  An established search business can increase billings by joining a franchise, primarily as a result of its:
1. a.  Name identification.
2. b.  Training programs.
3. c.  Network for exchanging job orders and candidate information.
4. d.  Conventions.
49. 49.  Even though a search business is not a member of a state trade association, it is bound by the association's code of ethics if:
1. a.  It joins the association at any time before a fee schedule is sent to the client.
2. b.  It joins the association any time prior to a placement.
3. c.  The client relied on the code of ethics thinking membership in the association was mandatory.
4. d.  None of the above.
50. 50.  Placement Management:
1. a.  Is available for $195 online at www.SearchResearchInstitute.com.
2. b.  Used as a daily reference and training session guide in successful search businesses everywhere.
3. c.  A review of every office management technique on the placement planet.
4. d.  All of the above.

 

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