Employment agencies frequently charge the individual a fee. This is done when the agency cannot convince the employer to pay the fee. On the other hand, many employment agencies that deal only with management and professional personnel do not charge fees to individuals. They simply will not accept a job order unless the fee is paid by the company.
In most states, employment agencies are regulated, required to be licensed, and frequently bonded. Executive search firms are pretty well exempt from state regulation in most instances. The reason for this is that the states want to protect the individuals who use employment agencies from being taken advantage of. This becomes especially obvious when employment agencies charge fees to applicants for positions. In lower level positions this is frequently the case, the applicant in many instances, pays his own fee.
What many states have done is basically differentiate between an employment agency and an executive search firm by the salary level of positions they can handle, and by who compensates them. An example might be in a particular state where executive search firms are not allowed to place anyone in a position which will pay a salary of less than $15,000 per year. Also, executive search firms must work for the company client and be entirely compensated by the company client.
If an employment agency places lower level personnel, then they obviously have to be fully licensed by the state. Employment agencies which function at much higher levels will also frequently remain licensed employment agencies, rather than executive search firms, so that they can occasionally place and recruit management trainees to accommodate their company clients. It can be irritating to an employer when a firm can recruit the Sales Manager, but is unable to help staff the sales force!
Another reason why a firm might rather be a licensed employment agency is when the economy gets bad. It can sometimes become quite challenging to convince companies to pay substantial fees for recruiting candidates when other companies are laying off at a fast rate. Those are times when unsolicited resumes arrive in droves, and many of those candidates would gladly pay a fee to get a job.
Not only are employment agencies licensed in many states, but so are the counselors they employ. Several states now give an examination to the individual applying for a counselor's license before one is granted. Many states have done a pretty decent job in trying to upgrade the industry.
Even the National Employment Association, the trade association for the employment agency industry, has tried to enhance their image by issuing a certificate of achievement to counselors who have passed a comprehensive examination on their profession.
Constant Problems
Even with all the attempts to upgrade the employment agency industry, there remain constant problems. Any time you have an industry which is compensated by commissions they are going to be overzealous participants trying to make a "fast buck." The same could also be said of the securities industry, the real estate industry, the insurance industry, etc. Over the years, I have seen participants in the employment agency industry, and executive search business, run the gamut from total incompetence to extremely competent and professional.
There is quite a rivalry between employment agencies specializing in the executive job market, and executive search firms. As I indicated earlier, there is frequently no difference whether a company hires an employment agency or an executive search firm to conduct a search. When the employment agency is actually going to recruit candidates to fill the job, the employment agency is functioning exactly as an executive search firm-they are not merely waiting for candidates to walk through their door.
Executive search firms employ self-preservation tactics and sometimes represent themselves as employment agencies really serving the lower level job market-as many agencies do. They also refer to employment agencies as not being recruiters, but rather merely waiting for applicants to come to them-and in many instances this is true.
What irks the executive recruiters are employment agencies which function exactly like executive recruiters and yet have the license flexibility to make a job campaign for a promising candidate or place a lower level applicant.
Whereas an executive search firm works solely for the client company, an employment agency can work for either the company or the individual. Even though the agency might be compensated by whoever hires you, they can still run a job search campaign on your behalf. Specifically, employment agencies specializing in professional and management personnel will frequently run a job search campaign for you-approaching only those companies who will pay the entire employment agency fee. In this day and age, unless the economy is really down, most companies will gladly (well, maybe not quite gladly) pay an employment agency fee to hire good people.
If you are an especially outstanding candidate, then it behooves the employment agency to make a job search campaign on your behalf. There is nothing like an outstanding applicant to "break the ice" with an employer. The theory is that the employer will assume that since this candidate being presented is pretty good then the agency must also be pretty good; sometimes yes and sometimes no.
An employment agency or search firm is only as good as the candidates they deal with. If an individual recruited or placed with a company turns out to be a poor employee, then it is guilt by association-the firm that placed him could not be much better. If the placement is highly successful, then there is a high probability that the employer will return with more search assignments. This is an obvious long-range motivation for employment agencies and search firms.
One Distinct Advantage in Using an Employment Agency
The distinct advantage in your using an employment agency is that they can help you in preparing for your interviews. The employment counselor, if he is worth anything, should possess some insight into the company and perhaps even into the personalities of the individuals who will make the ultimate hiring decision. If there are any peculiarities about the employer or other pertinent information which could increase your chances for a successful interview-the intermediaries are in a position to help you. If your employment counselor does not possess the necessary insight to help you, then he is at least in a position to obtain it Search firms can also offer you valuable insight, but you will most likely be dealing with them when they choose, not you.
If other candidates have also been sent to the employer by the agency, and have been turned down, try to find out why. What is the so-called "hot button" for this particular employer? What are his particular likes or dislikes? What salary level do they really want to pay? How much was the last employee who held the position earning?
I heard of an employment counselor, some years ago, who was trying to place a costume jewelry salesman with one of his client companies. He must have sent his client half-a-dozen tall, handsome, athletic-looking salesmen. They all fitted the image of what an "All-American Salesman" ought to look like-whatever that may be. All of them had related product sales experience. After having all of them turned down, the employment counselor still could not figure out just what was the matter. The employers indicated that they were all fine young men, but they were not quite what they were looking for. Finally the employment counselor arranged to visit the company and meet the owners. The company was owned and operated by three brothers--all of whom were under five feet five, and weighed in excess of 200 lbs. They were also bald. There were also three other salesmen employed with the company who were carbon copies of the three brothers.
Within a few days the counselor, with new-found wisdom, sent over to the employer a nice, young, short, and portly salesman whose background was selling automotive supplies. He was made an offer and subsequently hired. The counselor had finally come up with a "round peg" for a "round hole."
Choose Your Own Employment Counselor
When arriving at the employment agency to register, do not be afraid to ask for the manager of the agency first, and explain to him what your experience and background are. Request a senior counselor. If the manager feels that you are readily marketable, then he should happily accommodate you. If he does not, and gives you a hard time; politely thank him for his time and be on your way. Your career and your time are too important to risk with some incompetent counselor--who started the day before, and probably will not be there the following week when you call to follow-up on why nothing positive has been accomplished.
If you really impress the manager he may try to hire you to work in the employment agency as an employment counselor. I would estimate that over ninety percent of the employment counselors are hired from the ranks of individuals coming to the employment agency looking for a job. Most employment agencies pay their counselors primarily a commission except for a small draw-so they are almost always anxious to hire another one.
When you select an agency and a counselor, do not give him the impression that you are registered, or will be registered, with several other employment agencies. If you are fortunate enough to draw a top counselor to work with, then you can be sure he did not become that way by trying to place applicants who were registered with a dozen different agencies. If you are impressed with the counselor, tell him you will use him exclusively. You may even really do that.
There are some very talented and creative employment counselors who can really do some good for you if they are property motivated. It is no surprise that the most competent employment counselors make the most money, and some earn quite substantial incomes for themselves.
Since you will not really know just how good the counselor is until he produces, under no circumstances should you give up on your own job search campaign. Even if you are convinced that he will arrange more good, solid interviews than you can handle. Unfortunately, it is "the nature of the beast" for the counselor to convince the applicant that he should rely exclusively on him for the best interviews, and not go to any other employment agency.
Employment Agency Contracts
There are many different contracts used in the industry, but I have never seen one that I felt was worth signing. Many of them have clauses which obligate you to a substantial portion of the fee if you accept a job, even though you then change your mind, and do not spend one day on the job. Others obligate you for the fee if you spend a short period on the job, then leave; no matter whether the position was fee-paid by the employer or not. If you sign an employment agency contract, then leave your job in less time than the agency guaranteed you for, you will probably be obligated to the agency for whatever they have to refund to the employer.
Each state has different laws governing employment agency contracts with job applicants, and the obligation could range from nothing--all the way up to the entire fee. In many states, the reason for your leaving your job within the "guarantee period" makes a substantial difference to your level of obligation under a signed employment agency contract. If you never want to pay an employment agency fee, then simply never sign an employment agency contract.
Specify that you only want to be considered for fee-paid jobs where you have no obligation whatsoever to the employment agency.
In fairness to those employment agencies that have made it a policy not to work with any applicant who does not sign their contract, I suggest you at least show it to an attorney before signing. There are some employment agencies wanting to insure that someone is going to compensate them if they successfully place you. Because employment agencies typically work with companies on an oral contract basis, there have been cases of misunderstanding between the employer and the agency as to who will pay the fee. By having your signature on the dotted line of a contract, the employment agency has obtained an insurance policy which provides payment from you if the company refuses to pay the fee.
If you do sign a contract, so that the agency will work with you, but do not want to pay a fee, then indicate emphatically that you will only accept interviews for fee-paid positions.
It is not unheard of for an employment counselor to send an applicant who has indicated that he will not pay a fee, but who signed the contract, for an interview with an employer knowing full-well that the employer expects the fee to be paid by the applicant.
What the counselor hopes to accomplish is one of two goals:
1. The employers will become so infatuated with the applicant that they change their mind and pay the fee. Meanwhile, the counselor will try to coax the employer into paying by casually mentioning another excellent company who would be more than willing to pay the fee for such a qualified applicant. An employment agency would almost always prefer to have the commitment to pay the fee come from the company. Typically, an oral contract from a solvent company is more assuring to an employment agency than an individual's signed contract.
2. The applicant falls in love with the job and the company, and agrees to pay the fee rather than pass up the opportunity of a lifetime.
While on the interview, when you have signed a contract, always confirm with the employer who is paying the fee in the event they hire you. You should confirm with the employer who is paying the fee even when you have not signed an employment agency contract. Why take any chances on a misunderstanding? A confirmation during the first interview can save a lot of grief when you are about to accept an offer.
Many of the employment agencies that aim at the management and professional positions have simply done away with contracts. They only deal with companies that pay the fee, so the subject of contracts with individual applicants is not germane.
At the management and professional levels, companies pay the employment agency fee the great majority of the time. Good people are hard to find, and it is frequently more efficient for a company to use an employment agency, or executive search firm, than to waste a lot of time and money trying to hire someone themselves.
Do Not Discuss Which Other Companies You Are Talking To
One of the most fruitful methods of obtaining job order leads is to question the applicant about where else he has been or is going. It is amazing how many applicants will just "run-off at the mouth" that they are under consideration here, there, and everywhere. Each company mentioned, becomes an invitation for the employment counselor to try and knock you out of the running by recommending a candidate of his own. As soon as you have completed boosting your ego and have left the office, you can bet that the counselor will be on the telephone to your best lead-with a candidate he feels is better than you!
A little game that counselors play is to ask you, "So that we do not cross wires, which other companies are you talking to?" Tell the employment counselor, "I have just started my job search campaign and have only talked to a couple of companies that I am sure you would not be approaching." This should tip him off that if he is going to make any money on you ... it will be from placing you--and not living off your leads!
Employment Agency Application Form-Reference Line
Most employment agencies use their own standard job application forms which ask for references. If you do fill them out, make sure that you write: "CONFIDENTIAL DO NOT CONTACT WITHOUT PERMISSION" right above the references. Generally, I would recommend that, instead of listing references on the application, you write: "CONFIDENTIAL--REFERENCES FURNISHED UPON REQUEST." Make it very clear to the counselor that you do not want anyone at your present or past employers contacted without your permission. You are gainfully employed and want to remain that way!
In hunting for job orders, counselors are sometimes anxious to check particular references just as an excuse to call the company. You do not need that kind of reference check!
Discussing a Bad Experience
If you are utilizing the services of an employment agency, executive search firm, or any other personnel consultant, and you are unfortunate enough to discuss a job from which you were fired, how might you handle this delicate situation? Few individuals care to discuss their dismissal from a job. In fact, if they must they almost always find some reason for being fired which makes them feel better. In creating a fictitious reason for being fired from a job, the candidate frequently fails to use empathy in thinking out just how his fabrication will appear to the interviewer. In all my years as both an employment counselor and executive recruiter, I have never had anyone tell me that the reason he or she got fired was for doing a lousy job. In many cases, it is really quite important that you do discuss this matter before you are presented to the employer. There are several practical ways of discussing an unpleasant present or prior job experience.
A preliminary discussion of the bad experience you have had with a past job can help prepare you for actually meeting the prospective employer. If you were fired from a recent job because you did a lousy job--there still had to be underlying reasons for it. Maybe you were too lenient with your subordinates and let them take advantage of you. Maybe you did not delegate responsibility, and attempted to do everything yourself. Maybe you just did not have the right background or training, and now you have taken steps to correct the situation. Maybe you had personal or health problems which have been corrected.
You want to give positive, common sense reasons why it did not work, and why you are confident that you have learned from your mistakes and are a better person for it.
I do not believe in dwelling on negative points, but it is far better for you to bring them up when they are going to present themselves anyways, either with the intermediary or the employer.
Depending on just what the negative point is in your background, and supposing you are not sure how to handle it, discussing things first with an executive recruiter, employment counselor, or guidance counselor can be of significant help. Remember, though, who is paying them, and gauge the magnitude of the blemish on your resume, when deciding how to handle this situation.
There is a calculated risk when you confess something pretty bad in your background to an executive recruiter or employment counselor. You may ruin your chances of ever being recommended.
On the other hand, something that you were previously fired for might not seem that significant to the recruiter or counselor. Without being disloyal to their company client, they may make some suggestions to you as to how you might handle this delicate subject.
Checking Out the Employment Agency or Search Firm
If you are going to deal with an employment agency or executive search firm on a personal basis, find out all you can about them. The easiest way to do this is to ask them straight questions, and draw your own conclusions. Do not be afraid to inquire at what salary levels they do most of their work. Ask the counselor or recruiter, "How long have you, personally, been in the business?" What are some of the positions they have filled, and for whom? How long has the firm been in business?
Also, I suggest that if you are serious about using any particular firm, you "place the shoe on the other foot" and request references from both the firm and the individual counselor or recruiter you will be dealing with. Your career is just too important not to take these precautions.
Any search firm or employment agency which will not produce good references should not be used.
When evaluating an employment agency, think of anyone you know or have heard about who may have had dealings with them. Ask them, straight out, what they thought--both the positive and negative. You might be surprised by what people will tell you about their experiences. A few calls to friends could save a tremendous amount of time wasting and aggravation.
On the surface, it is very difficult to judge whether an agency or search firm is any good. Again, your successful dealings with search firms will probably come when they approach you--so this is really aimed at selecting a good employment agency.
Some large national chains are very good, while other large organizations are pretty bad. Some small ones are totally incompetent, while others are truly outstanding. Each firm, large or small, has to be evaluated and checked out individually. More specifically, each counselor within each firm you will be dealing with has to be individually judged. The firm is only as good as the counselor assigned to you!
