by dannyd

Created on: February 17, 2007   Last Updated: April 17, 2007

People sometimes consider using the services of a commercial employment agency. With an estimated 20,000 or more such firms in the United States and similar multitude internationally, determining the quality of services they offer is no simple task. The industry is further tainted by questionable reputations and a lack of regulation.

Labels such as executive search firms, personnel consultants, headhunters, outplacement firms, employment agencies, etc are often used interchangeably. But there are subtle differences.

Outplacement agencies accept money from individuals (private outplacement), or from corporations sponsoring individuals (corporate outplacement), to conduct job campaigns for displaced employees. Fees are paid up front (retained fees') and the firm markets the individual to employers.

Employment agencies seek candidates and market the candidates to employers who can potentially use their skills. Fees are sometimes earned from the candidate (most often the case in temp agencies) but most often are employer paid fees when it is a full time job involved. Contingent Search Firms are only paid by the employer upon successful assignment completion (contingent fees). Retained Search Firms recruit candidates for their corporate clients, but are either paid up front or on a progress basis.

Use the following cautions when dealing with any of these types of firms:

- Study the classifieds. Avoid agencies that run the same ads week after week since this is often indicates they are merely stockpiling resumes for future as opposed to immediate use with potential clients.

- Be wary of glamour jobs that are too good to be true'. Offers of super high salaries, etc are often used to lure the unwary into the agency's door.

- Request specific job information. At a minimum, a reputable agency should tell you by telephone the location of the job, the skills required, experience needed, the size of the firm, and the salary (although, for their own protection, agencies do not give you the actual name of the employer at this point.) If the agency refuses, don't waste your time and just hang up.

- Only pursue fee-paid jobs. Otherwise, you will spend from 15 to 30 percent of your annual salary for perhaps three hours' work that the agency spent locating your job.

- Do not sign contracts without reading the fine print carefully. If you do, and you find the job you accept is a mistake, you are still bound to pay the agency its full fee. Demand that agencies give you a copy of the contract to take to a legal advisor for a professional opinion before you sign anything.

- Verify that the job you originally sought actually exists and if the agency refuses to verify this for you then leave and also file a complaint with your local consumer protection agency.

- You should have detailed information about a job before you end up seeing the employer. In spite of what the agency says, you have a right to a written copy of the job description.

- Avoid the interview treadmill'. Some agencies will arrange countless interviews even though applicants are not qualified. The idea is to get the applicant a job, any job, and the placement specialist a commission.

- Do not let yourself be pressured by the consultant. Do not fall for "You'd better take what you can get." Again, that line used only so that they can get their commission.

- Be ready to complain. Unethical business practices will continue until the public does something about it. Report your complaints to your local consumer protection agency / Better Business Bureau.

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