Working with recruiters (part 2)

Recruiters generally receive about 25%-35% of the starting salary of the new hire, plus expenses. Ideally, this should be paid to the recruiter as per their relationship to the employer (i.e., retained vs. contingency), and not through any payment from the new hire. Study any agreement with a recruiter very carefully to determine if you will have to pay any fees.

According to Kennedy Information (a partner of CareerJournal.com), as of several years ago, there were about 5,500 search firms in North America, of which 2,650 work on a retainer basis (48%), and 2,850 work on a contingency basis (52%).

I will be discussing search firms (i.e., third-party recruiters), which are typically what people mean when they refer to recruiters. I will not be discussing search firms that charge you fees. I've never worked with such firms before, as there are plenty of firms that will seek to place you without charging you.

Using one or more search firms as part of your job search does offer some advantages. They often have access to job openings that aren't otherwise advertised, and they often have information and contacts that you don't, and some may even specialize in your particular industry. An applicant submitted by a search firm often has an advantage over other applicants because the search firm prequalifies them.

Disadvantages of working with search firms include the fact that you are not their customer, but their product. The employer is interested in finding the right product. If this fact disturbs you, then consider avoiding recruiters. Also, if you are seeking an entry level position, a search firm may not be interested in you (unless they posted an opening for such a position.) A search firm often adds little value in filling entry level positions.

Also, if you come to an employer through a contingency recruiter, it costs more to hire you than if you had come to their attention through another route. Retained recruiters usually submit a candidate's resume to one potential employer at a time, which can limit your opportunities.

Other disadvantages of working with search firms include the fact that you will probably lose some control over how you are presented to others. About twelve years ago, a contingency recruiter was preparing to present me as a candidate to a very large firm. At least I thought it was me, but the person they described in their written communication to the firm was much better than I really was. I decided not to continue working with them.

To be continued….