JOBTALKS Using Placement Agencies and Search Firms Indiana University Kelley School of Business C. Randall Powell, Ph.D

Cart oon Great news mom! The employment agency found me a job.

Using Placement Agencies and Search Firms Welcome

Search Firm: Hired by a company to find an employee, usually a hard-to-fill position Definitions -- Search Firm

Placement Agency: Hired by the company to fill a position or Hired by an individual to find a position Definitions -- Placement Agency

There is very little demand for recent MBA grads from search firms The Bad News is...

Contingency Firm: – Agency gets paid only if it fills the position – These companies make their money filling positions Definitions -- Contingency Firm

Retainer Firm: – Agency is paid to find someone – Paid regardless of whether they fill the position The best situation for you is the retainer firm. They are more selective and take the time to do the research. Definitions -- Retainer Firm

Research Firm: – Act as front end for Search Firms – Find candidates and can act as a short-term warehouse for resumes – Help search firms find people in smaller or more specialized industries Definitions -- Research Firm

Client: – Whoever pays the money In most cases, it's the company. That means the agency doesn't represent you, but represents the company. Definitions -- Client

Two basic arrangements on who pays the firm's fees: You  or The hiring firm Who Pays?

The best kind of arrangement is called fee paid. – The employer pays the firm if you accept an offer and start work – Employer pays from 10 to 30% of your first year's salary – Many of the companies that use placement firms are too small to have a full time-recruiting staff Fee Paid

Search firms are like exclusive country clubs--you can't ask to join, you have to be asked. Special Info on Search Firms

One search firm received 40,000 unsolicited resumes in a year. – They filed 100 – Submitted 10 – 5 of those got interviews – One person was hired The Odds

Go through a Research Firm – Listed in Directories – Contact the Research Firm as if they were an employer Approaching a Search Firm

Go through someone else, preferably someone they have dealt with before – An employer – A person they have placed Approaching a Search Firm

If you don't know anyone who has been headhunted, be more imaginative. When talking to a networking contact, ask what the best headhunter in the field is. Then contact them, letting them know that "so and so referred me." The best attitude to take is "I've got nothing to lose." Approaching a Search Firm

Search firms are usually paid from 25 to 33% of your starting salary plus expenses. A company might spend $85,000 to find someone and has absolutely no guarantee of finding the right person. The Cost

Many of the national and regional accounting and consulting companies have found that clients needed assistance in finding highly qualified people. A Special Group of Search Firms

How do you find them? – Talk to your networking contacts – Ask personnel directors – Ask recruiters Dealing with Placement Firms

Title The Career Guide The Job Bank The National Directory of Personnel Consultants The Prentice Hall Directory of Executive Search Firms.... There are over 26,000 firms who deal in placement. Here are a few guides that list placement agencies: Helpful Guides Location BUS/SPEA Reserves UGRAD-Career Reference BUS/SPEA Reference

To contact a placement firm, you can be more direct. – Call or write with a follow-up phone call – Ask for a face-to-face meeting The Placement Firm

When you meet with the placement firm to discuss your qualifications – Treat it like any other interview – Study up on the industry or field you are targeting – Research the placement firm Meeting the Placement Firm

To make the best use of a placement firm, you need to understand how they operate. – Most deal on a contingency basis – They get paid for placements by the employers – They want you placed quickly with the least amount of effort Using the Placement Firm

Before picking a placement firm, ask for references. Ask for people with a similar background to yours. Ask for References

Make sure you want them representing you. – Is the recruiter accessible? – Do they understand the industry? Are They the Right Firm?

You do not have to deal exclusively with one placement firm. You should contact more than one firm and allow each to refer, but avoid overlap. Use More Than One Firm

You have rights when dealing with placement firms. – You don't have to go to every interview the placement firm sets up. – You have the right to know what's going on in your search. – You have the right to know who your resume is being sent to. Your Rights

The Do’s of Dealing With Placement Firms – Do read everything you are asked to sign – Do insist on a face-to-face interview – Do get any promises in writing – Do continue all other searches

– Do make sure the firm is right for you – Do use your networking contacts to determine which firms are best in the field for the type of position you are looking for – Do insist on being notified about which companies your resume is being referred The Do’s of Dealing With Placement Firms

– Don't deal with a firm if they ask too many questions about other companies you have interviewed with – Don't let other placement firms know of each other – Don't fall for the "Bait and Switch" – Don't expect your recruiter to also be a counselor The Don'ts of Dealing with Placement Firms

– Don't be bullied into interviewing for jobs you don't want--the agency wants to get paid – The process isn't necessarily fair. You have to be twice as good as other candidates to get the job--to hire you means a higher cost than hiring others The Don’ts of Dealing with Placement Firms

– Don't stay with a firm that sends you to inappropriate interviews – Don't let your resume be the first one sent in for a position. Many firms tend to use a "loss leader" to lower the client's expectations. The Don’ts of Dealing with Placement Firms

Placement agencies aren't always very savvy about the MBA market. Spend time ensuring the recruiter understands your background. One Final Caveat:

– Conduct videotaped practice interviews – Rewrite and polish your resume – Provide cover letters – Counseling All for a usually substantial fee. $ $ $ $ $ $ Other Services Offered by Placement Firms

Any firm that offers counseling and other services may really be concentrating their efforts in selling those services rather than selling you. Beware...

Search firms and placement agencies are excellent tools for your job search. They should not be the only method you use. You are still the one in charge of your job search and only you can decide what position is right for you. It Is Up to You

Using Placement Agencies and Search Firms Conclusi on

If you would like to learn more, Career Planning Strategies textbook will supply additional information on this topic.