Know the Difference in Employment Service Firms

2021 Newsletters, Business

Thanks to the recent shutdowns there has been unprecedented movement in the job markets. People who were laid off are looking for jobs, and others want change jobs to fit a shift in priorities that changed after so much time at home. It’s important to understand how job posting boards and head hunting services work and the complications that can arise from scammers tied to some resources. Job scam information.

If you’re looking for a job, you may come across ads for firms that promise results. As explained by the Federal Trade Commission (FTC) (www.ftc.gov), while many of these firms may be legitimate and helpful, others may misrepresent their services, promote outdated or fictitious job offerings, or charge high up-front fees to job searchers for services that may not lead to a job. Some ads may direct you to call a toll-free 800 number. Once you’re connected, you may be switched to a pay-per-call 900-number without your knowledge, or you may be asked to call a 900-number without a proper fee disclosure. Both practices are against the law.

It’s important to understand the differences among employment services. Many terms, such as “employment agency,” “personnel placement service,” “executive search firm,” or “executive counseling service” are used interchangeably, so it’s important that you determine what services a firm offers, how much the services cost, and who pays. If you’re required to pay the fee, find out what you may owe if the employment service fails to find you a job or any leads.

Seven basic types of service companies/agencies offer consumers help in finding a job. They include: public employment services; employment agencies; executive search services; temporary help services; executive counseling services; job listing services; and online job boards.

1. The federally-funded and state-operated Public Employment Service, also known as the Job Service, operates in all 50 states, the District of Columbia, Guam, Puerto Rico, and the Virgin Islands. The Employment Service provides Internet access to America’s Job Bank (AJB). On any given day, this national resource lists hundreds of thousands of job opportunities. It also provides links to numerous employment and training programs in each state, including programs for people with disabilities, minorities, older workers, veterans, welfare recipients, and young people.

The Employment Service provides its services free to both employers and job seekers. Openings range from entry level to technical and professional positions. Visit www.ajb.dni.us for more information.

2. Employment agencies or personnel placement services work to fill specific positions available within companies. These are actual businesses that help people find work. Their purpose is to bring applicants and employers together. Often, the hiring company pays the placement fee, but when state law permits, you and the employer may share the fee or the fee may be billed to you after you’ve been hired, especially if you approached the agency for help finding work. Employment agencies usually are licensed in the state where they do business.

3. Executive search firms or executive recruiters are hired by businesses to find the “right” person for a particular job within an organization. Often known as “headhunters” these recruiters are paid to search through posted resumes and cold-contact individuals to see if they’d like to apply for an available position. The individual who is hired doesn’t pay the fee; it’s part of the agreement between the hiring business and the recruiting firm.

Executive search firms usually subscribe to a code of ethics established by industry members; some firms are licensed by the states where they do business, as required by state law. Others however can be shady and aggressive as the recruiters often work on commission. Since they reach out to you it can also add to the clutter of job search inquiries and offer the potential for a scammer to get your personal information.

4. Temporary help services supply workers to businesses on a temporary or as-needed basis. Businesses pay an agreed-upon wage to the temporary service for work performed by the employees. The temporary service firm pays the workers, not the temporary employer. These types of jobs are often temp-to-hire and frequently offer shorter hours and no benefits unless you are hired on full time. With this type of job you have more flexibility with your availability – but less security. If you decide on a temp to hire job be sure to read the contract and understand the terms.

5. Executive counseling services or career counseling services help job seekers with career directions and decisions more than with job placement. These services can be run by non-profit and for-profit agencies. They may offer services like skill identification and self evaluation, resume preparation and letter writing, and general information about companies or organizations in a particular location or job field. Fees can be as high as $4,000, and payment often is required before services are provided. If you are laid off some companies will pay for these services for you for a few weeks as you get back on your feet. Job placement is not guaranteed for their services so be careful and read the contract if you decide to work with these companies. State law dictates whether executive counseling firms are licensed.

6. Job listing services or advisory services sell information about getting a job in the U.S. or abroad. They often use pay-per-call 900-numbers to do this. They do not provide actual job placement. Information may include lists of job openings, general tips on conducting a successful job search or interview, and broad guidance in resume writing. These advisory firms often require an up-front fee for their listings.

7. Online job placement boards. These are the most common way people look for opportunities today. Sites like Linked In, Indeed, Zip Recruiter, Monster, Flex Jobs, CareerBuilder, and Fiver do a great job in searching daily job postings from employers and have solid search features. You can also set up preferences for easy job application and notifications to your email on new job postings. These sites offer a free search feature for job seekers, and charge employers a fee for new job postings… however most online job search sites require a monthly fee to access premium features and jobs. Do your research before you pay and don’t pay for more than one or two sites as most new jobs will show up on each board eventually. Here is a listing of popular job sites.

Be wary of sites that want you to pay up-front to see job listings as their job databases may contain old jobs still showing up in listings, or are hard to use to set up your preferences. In addition you should be able to set a preference to allow or not allow employers to see your resume. This will cut down on the number of unsolicited ads and head hunters you have contacting you. Remember it’s never a good idea to pay someone just to get a job.

What are some good and safe resources for finding your next job?

If you are having trouble finding a job and your debts are growing don’t miss the opportunity for a free consultation with one of our credit counselors. They can review your situation and find a workable solution for you. Visit today at www.ffef.org or call us at: 877-789-4172