I’m looking for a new job. I’ve seen many positions that I’d potentially be interested in, but are posted by basically a third party (not the company I’d be working for). These positions are posted by companies with such titles as staffing agencies, recruiting firms, search firms, and a bunch of other similar sounding titles. I am wondering what the difference between them is, and if you can tell from the title how the company works.
Basically my situation is this:
I’m probably not interested in working as a ‘temp’, meaning I want to be paid directly for the company that I am doing the work for. I really don’t want to have one company paying another for my services (and allowing the second company to take their cut of the money before they pay me). I’d also like something more long term and where I’d be at the same place for hoepfully the rest of my career or at least as long as possible.
But, I’d also assume that some of these companies are just in the business of finding potential employees for another company’s open positions. That would be fine with me, as long as once I was hired, I became a ‘real’ employee of the company where I was actually doing my work. Am I right in assuming that through some of these companies, once they found me the job I’d basically be out of their hands?
Anyone know exactly how these different companies operate? Any way I can tell which ones to apply through and which ones would be just wasting my time? Any additional input would be appreciated as well.
Recruiting /Search/Headhunter Firm - Primarily provides qualified candidates to their clients for “perm” positions. The search firm is usually paid by the client a flat % of the candidate’s annual salary for their services.
Staffing Agency - Primarily supplies supplemental staff to their client (commonly referred to as a contract assignment). How different clients utilize supplemental staff varies greatly. Some only utilize them to cover fluctuating work loads, some utilize for a specific project, some for indefinite periods (multiple years). Staffing agencies also provide candidates for perm positions as listed above. There is even the contract to perm arrangement that is very popular with many clients in that they get to “try before they buy” (in other words see if you are a good fit prior to making you a perm employee). In today’s HR world, this gets more popular all the time. The client pays the agency an hourly fee for their services (usually based on your pay rate plus a markup % to cover their overhead expenses)
Common misconception. Just because the client company pays the agency x$ for your services does not mean that is what they would be paying you if you if the staffing agency wasn’t involved.
Not sure what your background is in but for technical/IT professional fields, there isn’t much more security in a perm (or as you list it a “real”) position than there is a contract position. There are benefit differences, but most of the technical staffing firms do offer vacation/holiday pay, group health insurance and 401k participation.
The ones that you would want to associate with are the ones that specialize in your skills or profession. Example: Not any use dealing with a clerical or scientific staffing firm if you are looking for an electrical engineering position.
The terms are used somewhat interchangably and they tend to blend into each other so it might be best to describe them in terms of their business model:
Recruiters - Basically there are two kinds:
Those who are paid by the employee to find them a job - You should never use these
Those who are paid by the employer - Basically, they are paid a % of your starting salary. What you need to do is find out if they have been hired by the client company or if they simply send your resume unsolicited (which you can do yourself).
Temp/Staffing agencies - Similar to recrutiers but they basically contract you out to their clients. Diference is that you are an employee of the temp agency. Tends to be short term and lower level jobs.
In spite of what flickster said, there is considerably more stability to becoming a full-time employee vs a temp or contract hire. A temp can generally be let go at a moments notice. If a company has gone through the trouble and expense of hiring you (even if it’s for IT) they generally think twice about letting you go unless there is some kind of performance or economic problem.
Not always true. I have been involved with the technical staffing industry for 20 years. During this time I have seen circumstances where the company laid off perm employees and kept the contractors. I also know firms where contractors have been there for over 10 years on the same assignment.
This is true for perm employees as well. Example: You are working for an engineering firm where a project gets canceled and they don’t have a project to transfer employees to, welcome to being laid-off. No more protection than the contract employees. Firms operate on thin margins nowdays, they don’t have the ability to “bench” employees without being able to charge their overhead expense. In this case the contract employee may have the advantage. If they have established a good reputation with the agency, you can bet the agency is busting their butt to find a new assignment for them.
According to the agency I met with last Monday (and they’re professionals!) there isn’t any difference really between companies bearing the various titles beyond the level of employee they’re looking to provide. The tonier the client-type and recruit-type they’re going for, the tonier they’re going to make their name sound. As for the type of work they can get you it breaks down into three types: direct hire (the agency places you with Company X and you work for that company directly and immediately and you’re on that company’s payroll); temp to hire (the agency places you with Company X but you work for the agency and are on the agency’s payroll, with the goal being if you work out you will at some point be transferred to Company X’s payroll); and temp (you work for the agency on short-term assignment and are on the agency’s payroll, with little or no chance of being permanently placed with Company X). The fees the agency collects vary based on the type of placement but they aren’t a “cut” of your salary.