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Negotiating a contract is just as simple as having a conversation with someone. Don't make it anything more. In recruiting, a contract is only going to be between you (the recruiting agency) and your client (the company you're hiring for).
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Among other things, contracts mainly revolve around two things, fees and guarantees. The fee, is the amount that will be billed to the client, and the guarantee period is the time in which you will replace a candidate if they're fired or quit within.
Very simply, to negotiate a contract you have to first make sure that you're giving yourself the proper fee, for the position.
Example: How long does it take you to find candidates for that role? If it's a quick and simple process, your fee should reflect that. You should never attempt to set a fee that will double what you actually are doing, it never works out, just screws the client and gives you unearned money.
Warehouse and distribution positions are easy to fill, therefore they earn anywhere from a 10-12% direct hire fee. Keep in mind, we're only discussing direct hire and not contract.
Positions in finance or software, have much higher bars for finding candidates and coercing them over to join your client's company, therefore the fee would reflect that level of work effort, at 18-20% rather than 10-12%. Starting to make sense?
Your fee then balances out with a guarantee. If your client is paying you a premium (anywhere above 18% or such), you should be fine with giving them a nice guarantee period (max of 3 months).
If your client is paying 10%, that warrants a guarantee of no longer than 30-60 days entirely.
Why do I say this?
Well, when you negotiate a contract, it is in your best interest to collect a proper and fair fee, for your work, and then give the client the most minimal guarantee possible that they'll take.
The longer the guarantee, the longer the period in which you are responsible for replacing the candidate and making good on what's written in the contract (the guarantee period).
Human beings are completely unpredictable, we have no idea who's going to quit or be fired, when and how or why. None of that matters, all that matters, is that you simply make sure to give a guarantee period that is commensurate with the fee. If the client is paying a hefty sum, they deserve 90 days, and by nature of that type of client, and the position, you're unlikely to have a departure or firing in 90 days anyways.
If the client is paying just 10% it is likely you're hiring many people for that client (more than 2 etc), and thus 30 days maximum is proper for a guarantee. This means that after 30 days you're out of the woods for having to be responsible for replacements and such, as this is more likely in generalized labor or positions where almost anyone can do the work (lower skill tier).
If you've understood the above properly, the fee and guarantee should balance each other out like a sea-saw. One matching the other in size and caliber. Keeping both sides in check.
If this is completed, your contract negotiation should be a breeze and there should be no issues. Keep in mind, you may have to explain and consult on some of this to the client, often times, in general labor, clients don't understand all of the proper elements of recruiting/staffing and they'll need an explanation of why the guarantee period is there, or why the fee is x amount, etc.
If you follow these guidelines you'll be golden
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