HeadRace Recruiter FAQ

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HeadRace Recruiter FAQ

How HeadRace Works

If you’re just interested in learning how HeadRace works, this is a good place to get started.

What is HeadRace?

HeadRace is a software company that operates a marketplace for recruiting services. We make it easier for recruiters to spin up their own firms to make more money. Recruiters gain access to high-quality roles, candidates, and sourcing capabilities allowing them to operate more efficiently. We also give companies access to incredibly high-quality recruiting talent with a product-first approach to hiring.

See the

How do recruiters use HeadRace⁠

question for more information.

Who can use HeadRace?

HeadRace is available and free to use for anyone classifying themselves as a “recruiter”. Within the context of our business, a recruiter is anyone who helps a company source and place a candidate in an open role. Today, all recruiters using HeadRace are season experts who have been vetted before being able to join the platform. However, as we release new products, we have a vision of empowering anyone to become a recruiter, even as just a side-hustle!

If you’d like to sign up to become a recruiter on HeadRace, please use out self sign-up

here⁠

or reach out to us at

support@headrace.com⁠

Does it cost money to use HeadRace?

No, HeadRace is 100% free for recruiters.

How does HeadRace make money?

HeadRace earns money by taking a small percentage of placement fees earned through HeadRace-sourced opportunities. See the

HeadRace Fee Schedule⁠

for more information.

How do recruiters use HeadRace?

There are two parts of HeadRace available for recruiters: Marketplace & HeadRace OS (Business-in-a-box).

Marketplace

Marketplace is a dynamic feed of new earning opportunities available for recruiters. The HeadRace business development team builds relationships with the world’s most exciting companies, eventually helping these companies connect with recruiters on HeadRace. By providing the business development work and by facilitating the match between the recruiter and the earning opportunity, HeadRace charges a small commission of all fees paid in this model.

If you’re interested in new earning opportunities, Marketplace is for you.

HeadRace OS (Business-in-a-box)

HeadRace OS is a suite of recruiting and business management tools designed for recruiters — completely free to use. This product offering allows independent recruiters to run their own business and work their own deals from the HeadRace platform, for free. We offer industry standard search agreement templates so that you don’t have to worry about managing multiple legal agreements. Recruiters can also leverage the power of software to accelerate their client management, contract creation and signing, candidate organization and submission, and simplify earnings and taxes.

Our software replaces tools you would otherwise pay for, such as: DocuSign, Bill.com, Greenhouse, and a personal accountant.

If you’re just getting started as a newly independent recruiter and already have a client you’d like to work with, HeadRace OS is for you.

HeadRace Recruiter Collabs

Recruiter Collabs (formerly known as Splits) is a 1-to-1 recruiter product that allows 2 independent recruiters to work together on a search. Today, Collabs is primarily used by recruiters who already have existing relationships with other independent recruiters — these individuals are accustomed to splitting searches amongst each other.

Collabs is the first product of its kind that allows recruiters to collaborate directly with one another on a search; our software tracks candidate “ownership” and dynamically splits payments between recruiters. No more creating 1099s for each other and having to worry about overstating your earnings (for tax purposes). HeadRace handles it all for you.

If you have a search you’d like to split with a friend, Collabs is just the thing for you.

HeadRace Fee Schedule

Please refer to our website to view the

latest fee schedule⁠

. However, at the date of this publish (2/9/23), HeadRace’s current fee schedule is as follows:

⁠

Cash Settlements FAQ

How long does it take to get paid?

Invoice processing and time to payment initiation is controlled entirely by each Employer. However, once the payment has been initiated by the Employer, here are common timelines:

Worst Case Scenario (first stripe payment only): your very first Stripe payment could take as long as 14 business days from Employer payment initiation to settlement in your bank account. (this is if Employer is paying via ACH through a platform like bill.com)

Best Case Scenario: Employer pays via direct debit and Recruiter receives cash in bank account 3 business days later

Normal Case: Employer pays via ACH and cash settles in Recruiter account 9 business days after payment initiation

What should I do if an invoice is past due?

Don’t worry. As of August 2023, HeadRace has collected 100% of billed placement fees.

Note that there is a lag time between when payment is initiated and when payment settles in a recruiter bank account

HeadRace and the Recruiter receive funds at the exact same time.

Remember that HeadRace does not “hold” or “custody” recruiter funds–you get paid at the same time HeadRace does.

HeadRace sends reminders regarding outstanding invoices to both AP teams and hiring managers. Note that many times, large dollar invoices are hung up with either CFO’s or 2nd level approvers outside of the hiring manager,

Feel free to email

support@headrace.com⁠

or mention @here in your slack channel and someone from HeadRace will respond as appropriate.

Payment Reminders to Employers are always the first step and they work, but sometimes (especially for larger Employers) the best answer is to let the payment process play out.

Why does getting paid take so long?

Unfortunately, the Employer Procure-to-Pay cycle is slow by design. Most placement fees are greater than $10,000–for most companies, $10,000 is a lot of money to be disbursed at one time. As a result, companies often require multiple reviews/approvals before disbursing large amounts. These approvals take a long time because they are often reviewed in a batch only once per week. For invoices larger than $25,000, oftentimes 2 approvals are required.

To help recruiters get paid a little faster, HeadRace has been steadfast in negotiating Net 15 payment terms for roles on the marketplace. By standardizing Search Agreements with Net 15 payment terms, Recruiters get paid faster on the HeadRace platform than they would negotiating on their own.