A tough labor market for white-collar workers has turned recruiting upside down

https://archive.is/OAEU2

That’s the contract agent, something I wished existed years ago. Some interesting discussion: https://news.ycombinator.com/item?id=32838336

I am working on contract work through a third-party company, and I proposed them such a solution: I employ them, pay them a percentage [1], they keep me busy with work, just like any serious actor has an agent. It is a great business model for everybody, and their workload is small enough they can represent a dozen people with ease.

They actually liked the idea, have spoken of switching to such a model eventually, but the sad reality is that they make much more money the “classic way”: the big client gives them the contract, and they subcontract to me. This way they can skim 30-60% off the amount paid to the sorry bugger that does all the work at the bottom, without lifting a finger.

It is very sad no one seems interested to serve this need, except very few examples (there’s that NY management agency people have been recommending for the past 10 years, which have such a backlog of candidates there’s no real chance of getting in). If I had any interest in being a salesman and recruiter, I’d build such an agency in a heartbeat.

1: I’d pay for an actual agent 10-15% of my daily rate for the duration of the contract, which is much more than the numbers presented in the article.

This seems like such an easy way to create perverse incentives and profit off people who are already down on their luck. Imagine being told that the only way to get considered is to pay a fee. Then later on you get told to pay the gold fee for priority. Oh you're still not getting hired? Go for our platinum package that will definitely make the difference! Not enough money? No worries, we'll take 30% of your salary for the first few years. Or maybe we'll just give you some a fixed debt at a high interest rate. Aren't you glad you used us?

I wonder how the real estate market will look like in the biggest cities in the coming years. I haven't changed jobs for quite a while so I don't know if this article is accurate but if it's really that bad, then I wouldn't be surprised if we see a big crash. After all, the appeal of biggest cities was always, at least to me, the availability of white collar, highly paid jobs. If these ceased to exist, I don't see reason why people would want to move there anymore.

Looks like suits are making a comeback.

(For those who don't get the reference: https://www.paulgraham.com/submarine.html)

Maybe this is new in US, but paying recruiting agencies is nothing out of the ordinary in many European countries, at least if you actually want to have a recruiter that cares about where you land as position.

That's an interesting way of saying "total collapse of capitalism and built-up for bolshevik style revolution"

Is this still the result of COVID-era overhiring (caused by free cash)?

Special place in hell for people who share locked articles.

https://archive.li/OAEU2 (archive.is seems down for me)

   “If you are not paying, you are the product,” said Andre Hamra, Refer’s CEO. “It incentivizes us to actually help the person.”   

And that dude thought it would be a good idea to take the money of people looking for jobs instead of the companies that are swimming in cash.

I bet he actually believes his lies himself.

Sounds like crony capitalism, which is quite common in developing countries.

coming soon to a town near you: indentured servitude.

hopefully they will at least have nice bunk beds in the corporate dorms.

Oh. Basically this is the scam they use at Offerzen.

When I saw wsj.com I figured this would be an "article" that's mostly manipulative, fear-mongering and doom and gloom.

If you're paying to maybe get hired, you're not the client - you're basically being sold to yourself.