Types of Employment Service Firms
The terms which describe the people and companies that earn a living helping job seekers find jobs can be confusing. When you're looking for help in finding a job, 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. Find out 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'll owe if the employment service fails to find you a job or any leads.
Six basic types of service companies/agencies offer consumers help in finding a job. It is important to understand the differences among these companies and to choose the type that best fits your needs. Here is a description of who's who and who does what in the world of employment recruiting.
- Employment agencies or personnel placement services work to fill specific positions available within companies. This is the most common type of agency, a commercial enterprise designed to bring the job-seeker and the prospective employer together in the hope of producing a one-to-one match-up. For this service, the placement firm charges a fee; but only when the job seeker is actually hired. Usually, the employer pays the fee; however, 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. Employment agencies usually are licensed in the state where they do business.
- 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). Many states have touch-screen computers and kiosks available in public areas such as malls and state offices where job-seekers can access the job banks. 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. The Employment Services provide special assistance to veterans, the disabled, senior workers, youths, dislocated workers and welfare recipients who may require additional services in their search for employment. There are some 2,300 points of service nationwide; about 1,700 of them are full-time, full-service offices. The Employment Service provides its services free to both employers and job seekers. Openings range from entry level to technical and professional positions. The nearest Employment Service office can be found by looking in the telephone directory in the state government section. You can also visit www.ajb.dni.us for more information.
- Executive search firms or executive recruiters are hired by businesses to find the "right" person for a particular job within an organization. Recruiters sometimes are referred to as "headhunters." The executive who is hired doesn't pay the fee; it's part of the agreement between the hiring business and the search 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.
- Temporary help services supply workers to businesses on a temporary or as-need basis. These services that deal exclusively in temporary help are actually employers themselves, who hire out their employees to businesses with temporary needs. The client company pays a negotiated price per hour for the worker's services and pays that money to the temporary service. The worker, in turn, gets paid from that amount minus the temporary service's percentage for administrative overhead and profit.
- Executive counseling services or career counseling services help job seekers with career directions and decisions more than with job placement. 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. You'll probably have to pay this fee even if you don't find a job. Placement is not guaranteed. State law dictates whether executive counseling firms are licensed.
- 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.
