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lies, damned lies and recruitment agents

Tue, Jul 21, 2009

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It’s a sad fact of life, but most people with the word “Agent” in their job title aren’t too popular with the rest of us (with the possible exception of Travel Agents). Let’s see … there are Estate Agents, Publicity Agents, Insurance Agents and, my personal favorite, Recruitment Agents.

Recruiting

Probably the most frequently asked question by people who haven’t dealt with recruitment agencies before is “Which agency do you normally deal with?” People mistakenly believe that there is a degree of loyalty between the prospective candidate and an agency.

Let’s look at the reality of this ‘relationship’ …

The agency holds most of the cards - 

  • They know how much the employer will pay but they won’t tell you so that they can maximize their cut (you’ll never know that figure unless the client tells you or you find it lying on the copier).
  • They’ll advertise non-existent jobs on job boards to get hold of your CV.
  • If you’re not available for work, they’ll quiz you for names of your current employer or colleagues.
  • They’ll straight off ask how much money you earn as a salary or a contract rate and how much you would be prepared to accept.
  • They might ask you what other positions you have applied for so that they can work out who is hiring and send some other candidates’ CVs to go up against you!
  • They’ll expect you to find your own contract renewals within the company you are currently working for.
  • Once you’ve finished a contract with a company don’t expect a silver service from the agency. You’re on your own!

 How do you play YOUR hand? 

  • Realize that this isn’t a relationship at all. At best it’s very one-sided and NOT in your favor. 
  • Understand that for some large corporates there are different tiers of agency. Tier1 will likely be a single big agency with several smaller Tier2 agencies feeding into it. This means that if you go through a Tier2 agency they’ll take a cut and so will the Tier1 agency with you ending up with a lower rate. 
  • Be smart. The same job is likely to be advertised by more than one agency. Get to know who the good ones are and stick with them. 
  • Always ask “How much is the company offering?” rather than telling the agency how much you will accept. 
  • If you’re not available for work when you get a call from an agent, try to get some details from them for a change. Tell them that the rate that is on offer is very low. A little positive marketing can’t hurt and maybe the next person they call will get a better rate.

The best advice though is to get to know as many like minded people who have the same job skills as you. Make as many contacts as you can and build up a picture of which companies are hiring and what their rates and terms are likely to be.

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This post was written by:

Graham Findlay - who has written 4 posts on Cheezhead Recruiting News and Opinion.

Graham Findlay has worked in the IT industry for over 20 years as both a permanent employee, consultant and contractor specialising in Enterprise Systems Management. Graham is the co-owner of knokknok.com; a website that allows people to promote their skills free of charge. He currently lives with his family in North Yorkshire, UK.

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23 Comments For This Post

  1. Monster Rep Says:

    Finally I see a good post on cheezhead, rather positive one. Thanks for your inputs Graham.

  2. Judi Wunderlich Says:

    Wow, Graham, you must have had some bad experiences during your career with U.K. recruitment agencies; or maybe it’s just the IT field.

    I must take umbrage at most of your statements. It is clear you do not understand how a staffing/recruiting firm works. I’ve noted some of your comments in quotes, with mine after.

    “People mistakenly believe that there is a degree of loyalty between the prospective candidate and an agency.”
    –Yes, there can and SHOULD be loyalty, if the recruiter is doing his or her job right. I’m in this for the long haul and my personal reputation is on the line every time I deal with a job seeker and a hiring company. With the ‘open web’ today and the ease with which people can post positive recommendations as easily as negative rants (like yours), a recruiter (an agent as you call them) would be committing career suicide to treat people poorly or unethically. Instead, what I see happening time and again is that a job seeker does not understand how a staffing/recruiting firm operates and what they can – and cannot – do for them free of charge. It is this misunderstanding that leads to feelings of resentment. Obviously you are experiencing this.

    “They know how much the employer will pay but they won’t tell you so that they can maximize their cut (you’ll never know that figure unless the client tells you or you find it lying on the copier).”
    –The last time I checked, temporary/contract staffing agencies were in business to make a profit; they are not charitable organizations. Do you feel resentment when you go into a store and buy a suit, because the merchant will not disclose how much THEY paid for it? So how did you think staffing firms made money? Of course the price their client is willing to pay (let’s say $75/hour) isn’t what they will pay the job seeker (probably around $50/hour). But then again, the client is always willing to OVERPAY on an hourly rate because they know they are hiring a staffing service to do the work of finding/qualifying people for them, and then putting them on their payroll to avoid IRS legal entanglements. Your comments make this sound somehow shady when in fact it’s the standard and successful business model of every temp/contract staffing agency in the world. Recruitment/staffing firms exist, at least in the U.S. which you may not know much about, because it is often illegal for a company to directly engage someone to work full time on-site but calling them an independent contractor. They also exist because not every worker is capable of or willing to market themselves and find their own clients and projects. It can be a valuable service to both worker and company.

    “They’ll advertise non-existent jobs on job boards to get hold of your CV.”
    –In my 18+ years in staffing I have never run a job ad (which can be quite expensive!) for a non-existent job. However, what I will run is an ad that clearly indicates I’m sourcing resumes for FUTURE temp/contract jobs with my clients. That is a necessity for a staffing firm; we must have a constant stream of incoming resumes of people who are not employed and thus are available for temp/contract work, because these workers go on/off the market quite frequently. Perhaps you have seen some firms running such sourcing ads and just assumed, without reading all the way through, that the ad was for one specific open job.

    “They’ll straight off ask how much money you earn as a salary or a contract rate and how much you would be prepared to accept.”
    –Again, you seem to not understand how a staffing firm works. Of course we need to know what your salary or hourly rate is, because we need to know if you will be right for a particular job or a future job. Knowing this only helps us place you!

    “They might ask you what other positions you have applied for so that they can work out who is hiring and send some other candidates’ CVs to go up against you!”
    –Staffing/recruiting firms know it is a waste of time to send unsolicited resumes to a company that has not hired them to recruit, so here are the REAL business reasons they ask that question: (1) if you are a potential temp/contract worker, they need to know which companies you’ve already sent your resume to or interviewed with because that means they cannot represent you at that company; (2) if you are a candidate for a permanent full-time job, they must also know if you’ve sent your resume to a specific company already, but also must know if you are in the interview process with someone and might be receiving an offer. Knowing this gives them more leverage with a hiring company because if that company is interested in you, but knows you are being courted by another company, they may speed up their hiring process. Again, asking these questions helps the staffing firm help you!

    “They’ll expect you to find your own contract renewals within the company you are currently working for.”
    –This is a new one to me as I’ve never heard of this. Perhaps it’s a U.K. thing, but temp/contract staffing firms here don’t ask their workers to negotiate extending their jobs; in fact, we prefer they not talk to our clients about such things at all!

    “Once you’ve finished a contract with a company don’t expect a silver service from the agency. You’re on your own!”
    –You’re absolutely right on this – we don’t give out gifts when a job is over. Rather, we try to find another job to book the person on if possible. And the worker, at least in the U.S., may, if not booked right away, file for and collect unemployment insurance money.

    “Realize that this isn’t a relationship at all. At best it’s very one-sided and NOT in your favor. ”
    –It’s not one-sided at all. Staffing firms know about jobs that aren’t advertised on job boards, therefore a job seeker wouldn’t have the opportunity if not for the agency. We’re putting people to work, even in this lousy economy, and that’s never a bad thing.

    “Be smart. The same job is likely to be advertised by more than one agency. Get to know who the good ones are and stick with them. ”
    –Finally you say something I can agree with! There are good and bad recruiters out there, so do some homework and find the good ones to work with. And since this IS about building a relationship, just remember it’s a two-way street. You get what you give. If you approach a recruiter or staffing firm with a chip on your shoulder, like Graham apparently has, your hostility will show through and what recruiter wants to deal with that? Instead, approach this as a give and take relationship, you give some, they give some, and together you will get what you ultimately want – a paying job!

  3. Elizabeth Johnston Says:

    Executive Search Firms only receive about 15% of Executive Searches and they only fill about 1/2 of those searches. The most used method of filling jobs is from within and the second most used method is hiring candidates through networking. It takes about 10 interviews to get a position at most executive levels. Interestingly enough, it takes an Executive Recruiter about 10 candidates to make a placement.

  4. Michaela Prebbleton Says:

    Graham,
    You have confirmed what I have thought all along. I recently discussed this with people who have had bad experiences with recruiter/agents. I am certain that what you have said in your posting will get backlash from recruiters who will swear it isn’t true. Judi’s reply, while I don’t completely agree with everything she said, is a scenario that a job seeker could hope for from a recruiter. (btw, Judi, I appreciate your candor and I feel that your response is spoken by a true professional which, I feel, is hard to find). What Graham has said is not exclusive of the UK. As a Brit and US citizen, I have experienced the same in both the US and the UK and not just in the IT field. There have been times that I have sent in my CV in response to a job posting, gotten a call from the agent/recruiter who promises to call back but never does. I have gone on job interviews that have been set up by a recruiter/agent and never heard back once the interview was over. I walk away from that not with a chip on my shoulder and sure I got the job, but with the hope that I would get some feedback from the recruiter – good or bad.
    I have seen the same job with the same company and same qualifications posted by several different staffing companies. I cannot believe that in this job market a recruiter would have to continue posting the same job because, according to them, they did not receive any qualified candidate CVs. Job seekers know that for each job posting there are hundreds of CVs submitted. Job seekers know that it’s a very competitive job market. No job seeker I know “expects” a call from a recruiter if they are not qualified for the job or simply because they sent their CV at all. Not all job seekers have a chip on their shoulder. It’s hard to believe that recruiter/agents aren’t posting non-existent (or already filled) jobs to fill up their database. It’s a competitive scenario for the recruiter/agents too, and it’s understandable that sifting through hundreds of CVs of uber unqualified seekers is frustrating and time consuming.
    As a former job seeker, and I would think this applies to current job seekers, all that is asked is that IF a recruiter/agent engages with a seeker about a job or even other job openings they might be qualified for, that you follow-up. Don’t send them on an interview and never call back. Don’t tell them they will be hearing from you again if you have no intentions of doing so. If you have contacted a seeker in the first place you are indicating to them that you are interested in talking to them – if it’s not a fit then tell them!!

    Job seekers are frustrated. Most of the job seekers I know will no longer reply to a job posting because they feel it isn’t worth the time or effort. Many say they no longer apply to jobs posted by employment firms – or stop looking for a job at all – because it’s like throwing themselves into a black hole. The only hope job seekers have is that they find a real and true professional that really is interested in helping them find a job and not someone only interested in filling up their database.

  5. Graham Findlay Says:

    Monster Rep,
    Thanks for your positive feedback on my positive post!

  6. Graham Findlay Says:

    Judi,
    My observations are drawn from real experiences over many years from a wide variety of people who have dealt with recruitment agents (recruiters) in Europe. What I stated in my original article isn’t a rant, it’s reality, like it or not. Believe me, the model of a standard recruiting firm is so simple that even an experienced IT consultant (and I use that term loosely) can understand its innermost workings.

    You say that there “can and SHOULD be loyalty” and qualify that with “if the recruiter is doing his or her job right”. The problem is that too few of them are doing their job right.

    Quoting you again, you say that a “job seeker does not understand how a staffing/recruiting firm operates and what they can – and cannot – do for them free of charge.” It seems to me that recruiters don’t do anything for free….they’re running a business, not a charity after all.

    Your analogy about buying a suit from a merchant is the wrong way around…..if I’m buying a suit, then I’m the employer (client), not the employee….anyway if I don’t like the price I can go to any other cheaper store and buy the same quality suit….or hey, let’s cut out the middleman and buy it straight off the Net for a really low, fixed, one-off margin!

    Wow, your margins seem sky high, 50% of what you’re paying the poor “worker” and 33% on top of the client’s bill! Please can you introduce me to some of these clients who are “always willing to OVERPAY on an hourly rate”….I’ve never met any of them. Guess you can justify these high percentages by all that time posting job ads.

    I’ve never ever seen a job ad that states that the recruiter is “sourcing resumes for FUTURE temp/contract jobs”. Perhaps that print is really small? Doubt if I would reply to an ad like that anyway. It’s like a recruiter begging for CVs to be sent to them for free because they can’t be bothered to pay the job boards a fee to search for resumes!

    Try not to hide behind this “recruiter” term and use the more accurate term of recruitment agent. Recruitment agent says more about the role…the middleman that makes employers pay more than they should and pays the worker less than they deserve.

  7. Graham Findlay Says:

    Michela,
    Thanks for your comments. I agree with your analysis of Judi’s comments where she paints a scenario that’s the best that a job seeker could hope for from a recruiter. Unfortunately, reality is quite a lot different.

    I too, have had several occasions (the most recent one last week) where I have had an initial conversation with a recruiter about a potential job and they have promised to call me back about specific timescales and more details within 24 hours. The call never comes and even after I have left several messages, there has been no reply. I doubt if we’re alone in experiencing this kind of unprofessional behavior from recruiters!

  8. tom summit Says:

    Graham,

    Wow, can anyone say self serving? Way too generic and broad brush. It is almost like you are trying to set up an alternative business to using recruiters and think that painting them all in a negative light will help your cause. ;-) Sure there are bad recruiters just as there are bad online resume databases that think changing the name to people board will revolutionize the industry.

    Ask someone in professional sports what they think of their “agents” or anyone in a high demand profession and see if they reflect the reality that you describe.

    Dealing in absolutes will not help you get your message across.

  9. Ryan Says:

    I agree with all the data and facts mentioned Graham. Recruitment agencies are actually taking advantage of their strategic position. Now days people are getting a bit realistic in looking for jobs and are not keep blind faith.

    Ryan
    ==================================================
    career hunting uk

  10. Graham Findlay Says:

    Tom,
    I think you’re guilty of reading between the lines rather than reading the lines themselves.

    The article is about my experiences with recruiters and nothing else.

  11. Graham Findlay Says:

    Ryan,
    You’re dead right. Recruiters have been “taking advantage of their strategic position” – long may that position crumble ;-)

  12. Steve (Yank) Says:

    I am really taken aback by your posting Graham; not only is it a conglomeration of “worst case scenarios”, but it is also so generalized that it would make most people shy away from contacting a professional search consultant to aid in his/her job search.

    While I could probably write about or discuss this for days, I will simply say that while some of these things are true of some staffing people, it is not at all the norm. Do you honestly think that anyone who behaved like this would still be in business?

    Steve

  13. Michaela Prebbleton Says:

    Steve,
    Apparently bad behavior doesn’t close businesses because I have had bad experiences very similar to the ones that Graham noted in his blog. In fact, I have wondered why some are still in business myself. If there are so many job seekers out there who vent about the same bad experiences, why is it still happening?
    Over generalised? Not really. I have had conversations with others who have encountered the “worst case” much more than not. It is a sad fact that job seekers are, in fact, not contacting a “professional search consultant” because finding one that really cares is like finding a needle in a haystack. The overall response job seekers have about recruiters is pretty negative. There have been a couple of postings on this blog about this subject – written by frustrated job seekers venting about their experiences. It would be helpful for you to read them to realize that it is a common complaint.

  14. jonathan Says:

    LOL’d at this

    Once had a job through an agency

    Had three calls from them during the term of the (management) contract

    One to say I had got the job

    Two to ask me to send in bank details and the like

    Three to find out where my invoice was (this was after the contract had been finished 3 weeks.

    Oh and I got time sheets through the post for about a year after every week with out fail…

  15. Jim Johnston Says:

    Executive recruiters only get 15% of all searches across the board and fill half of them. I think we are making them seem like a bigger part of the job hunting process then they really are.

  16. scottthekyhrguy Says:

    Graham I’ve been on all three sides of the temp/contractor relationship. I’ve been a contractor, I’ve been a recruiter and I’m currently an HR Manager. Much of what you mention in your post is perception, but it’s very far from reality. The last staffing firm for which I worked had a 33% mark up over W-2 for a high volume, Fortune 500 company. We were the “tier 1″ company and we used several tier 2, niche companies for areas outside our expertise. We drove a pretty hard bargain with the tier 2 over their mark up, but that never had a detrimental effect on the pay the candidate received. It was truly a mark up. It actually benefited us to pay the candidate more.

    Think about it — we mark 33% up on $100/hour, we’re dealing with more revenue than if we marked 33% up on $10/hour. With that 33% we had to pay all of the statutory costs on the candidate (matching Social Security taxes, federal taxes, State Unemployment Insurance, etc…). We also had to pay to keep the lights on, the rent, the internet connections and computers, and the salaries of the recruitment team out of that 33%. We eaked out a few pennies an hour per employee and were only profitable because we had so many people working there.

    Now I’m on the other side of the equation. I won’t continue working with any vendors who treat their employees badly. There are some super shady recruiters out there — especially when you deal with the contingency search people who only get paid when a deal is closed. But I really believe this is a case of the perception being much more negative than the reality.

  17. Brasco,Donald Says:

    Was the writer also upset when he found out they charged money for ice cream cones.

  18. Graham Findlay Says:

    Hi Steve,
    Sure, it is a statement of a lot of worse case scenarios, but all the things I mention have and still DO happen.

    Do I “honestly think that anyone who behaved like this would still be in business”? Yes, most of them unfortunately still are! A lot of the time, the client has really no idea about how bad these recruiters (agencies) are.

  19. Graham Findlay Says:

    Michaela,
    Thanks for backing me up. I know there are some good recruiters out there, but their “customer care” has really gone out the window.

  20. Graham Findlay Says:

    Hi Jonathan,
    You were lucky with 3 calls from teh recruiter. Normally I get a call from the client (not the recruiter) or sometimes respond to an ad online.

    The only other time I get a call is a week before the end of the contract when they ask if I know what is happening!

  21. Graham Findlay Says:

    Jim,
    Maybe that’s the picture for the executive recruiters, but for the rest of us I expect it’s a much bigger percentage.

  22. Graham Findlay Says:

    Scottthekyhrguy,
    My heart really bleeds for those poor recruiters….if you can’t make money from a 33% markup then you look pretty inefficient to me!

    Glad that in your HR position you won’t work with vendors (recruiters) who treat employees badly, but I guess that is a question of perception too! ;-)

  23. Graham Findlay Says:

    Brasco, Donald
    “Was the writer also upset when he found out they charged money for ice cream cones?”

    No way, but I was when the recruiter licked it, charged extra and said they’d added value! ;-)

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