WHAT IS THE ROLE OF AN AGENCY?
Many of us in the job market have, at one point or another, been contacted by a recruiter telling you what a perfect fit you will be for an exciting new role they have with their client. For those who are new to this form of recruiting, it often feels like a good ego boost. We are all used to applying for dozens of roles at companies, and reaching out to human resource departments hoping for a call back. So getting a call or email from a recruiter saying they can hook you up with this flashy new role sounds great, right? Feels like you are important and being head hunted, right? It could be, but not so fast. I will break down the role of an agency, how to deal with them, and also why they are important to you and your contracting career.
Agencies of all sorts are often put in a bad light by many in the industry. Agencies are an unregulated market, and becoming a recruiter usually requires nothing more than some experience and background in sales. I have spoken with many recruiters in the past, and most of them are commission based, with most on 100% commission. Most agencies do not have any other services other than to place buyers (clients) with sellers (contractors). They only get paid (and usually a fee, or commission, based on the rate) when a contractor is successfully placed with a client. However, this is far from easy. Often times, there may be only one role from the client, but multiple agencies competing to push candidates for the client. And even more common is there could be multiple recruiters within the same agency who are again in search of that perfect candidate for their client.
Now you may be thinking: "Okay, if all they do is push your resume and then collect a commission off your rate, why do I even need them? I can apply to the same roles myself directly with a client and cut out the middleman." This is absolutely true if you are a very senior contractor, are well-versed in your niche/industry and have reliable contacts to many client companies. If all of that sounds like you, then you may be able to bypass the agency. However, there are many overlooked advantages to utilizing an agency that can actually aid your career in becoming a successful contractor. A staffing agency can keep you in touch with the current market, especially so if you a more green contractor, or if your contact base grown stale. A recruiter can use their network of contacts to set you up with meetings with clients you would not otherwise have. Many contracting roles are not always found on job boards and you will almost never find consulting roles on company websites. Remember, a 5 or 10% cut in rate is better than sitting on the bench for 3 months. Let me explain in detail what to do when you are contacted by a recruiter and how to deal with them that will put your company in the best position possible.
How to deal with a recruiter
So let's go back to the beginning, you get a call or email from a recruiter informing you of a new and exciting opportunity that is perfect for you. What do you do? My advice is to always try to entertain their thoughts, even if you are in a contract currently, and perfectly happy with your client.
The reason being twofold-- first you can feel out the current state of the market. Are there certain roles that are really hot in the market? If so where? Location is important as well, as you can feel out where many of these contracts are coming from. This can help you gauge the location of where your next engagement may be or possibly make you consider relocation options for the future. The second is rate-- not every contract pays the same, and location can play a big factor as well. Being able to constantly absorb these two pieces of information can help you make your next move. A professional contractor must always be proactive. You can not afford to be reactive to a professional environment that is ever constantly changing. I cannot stress this enough, you must always be in touch with the space you are working in. You are a business, and the client you are with today may not be the client you are working with next month. This is especially relevant to those of you in tech; as what is hot today or this year, may be overshadowed by newer technology and software down the road. It does not matter if you are the most qualified expert on a technology or niche, if no one sees your value, then you will not succeed.
Okay, so you decide to have this conversation with the recruiter now, but you don't really want to waste your time; as you are already thinking, I have a contract now and I am perfectly happy. Ensure your initial interactions with the recruiter are short, simple and to the point. Do not accept any offers to interview with the staffing agency, provide your resume, references or anything else that requires a lot of commitment or time, until you are sure you are dealing with a legitimate role you are interested in pursing. Now many recruiters out there are stand up and easy to deal with. Afterall, they are there to make a living just like you and I. However, be aware of sending over too much information when you have not been fully informed about a role. What I mean is, before you become too invested you should at least know the answers to the following questions:
- Who is the client?
- What is the project?
- Expected length of project?
- What is the role? (Job title, job description etc.)
- Duration the contract? Any chance of renewal?
- When is it due to begin?
- The location of the client site
- Do you have to be onsite every day of the week?
- Any remote working options?
- If you have to travel any significant distance, is that compensated?
- Is relocation an option?
- Any compensation of relocation
- Do you have to be onsite every day of the week?
- What is the rate? (Sometimes, you will be asked this question upfront -- state a reasonable rate you will be willing to sign on for.)
If you can fire through these questions in an initial conversation, you are set. At this point you should have spent no more than 15 minutes with the recruiter, usually less. You should now be armed with all the information you need to make a well informed decision whether this opportunity is really as perfect as the recruiter initially thought it would be for you. I usually leave the rate talk to the end as it can be affected by other factors (i.e. location, travel, or ability to work from home). For example, I live in Toronto, if the client was in Hawaii, an all-in rate of $100/hr compared to $100/hr in Toronto is a lot different when you actually break down the effective rate, after factoring in international travel costs, relocation, etc. Or say being able to work remotely a few times a week could be worth $5 or even $10/hr (your call).
So great, these questions are a good start, but what if your recruiter does not have all the answers to these questions? Now this is where things could get interesting. When I first started, I knew nothing. My first contract, I simply dove headfirst into the pool without even knowing if there was water in it. Luckily for me, it worked out okay and I learned a lot. Even now, I still am constantly learning to tweak and revise my technique in working with the agency to better improve my career and business. However, I do want to share my tips and experiences so you can hopefully make more informed decisions than myself had I known these useful tips prior to starting my first contract.
Next time, I will continue discussing techniques and common things to look out for which may occur when information appears different than what you have expected or missing from the list of questions your have asked your recruiter.
Check out part two here!