Random Thoughts – Randosity!

Job Hunting? Don’t be scammed.

Posted in economy, Employment by commorancy on July 16, 2010

As the economy is floundering and unemployment rates remain high, there are those people and companies who look to take advantage of job seekers. Some companies are legitimate, others aren’t so much. So, let’s investigate some ways you can avoid being taken during your job hunt.

Pay to play

Be extremely wary of so-called for-pay outplacement, consulting or career management companies that require up-front payments before you get a job. These companies will sometimes promise they will find you a job, but in the end you literally end up doing all of the work and you’ve paid them to let you do your own work! In fact, it’s work that you would have done without paying them anything! These companies may operate by taking a percentage of your expected salary. For example, if the job you are seeking has a $60,000 a year salary, they may expect $6,000 (10%) as your up-front fee.

Don’t be fooled by this practice. Yes, they may give you career advice or even write you a new resume, but is a new resume and some career counseling worth $6,000? You will find many resume creation sites (and software) on the Internet to makeover your resume that costs much less than $6,000.

These outplacement companies may also claim that they have ‘databases’ of jobs. The reality is that their database may be months old or non-existent. So, even though they have a database, what good does it do to apply for a job that was listed 6 months earlier? It doesn’t do any good and is definitely not worth $6,000.

Recruiters

While recruiting companies are not necessarily scams (although, the possibility always exists), most of them feel very slimy when you work with them. So, be cautious and here’s why. Recruiting firms supposedly have job databases and find candidates that fit various job roles. Unfortunately, the recruiting agents work on quotas. So, they must close a certain number of jobs over a period of time in order to 1) get their commission and 2) remain employed as a recruiter. After all, the commission from the candidate’s placement is what keeps the recruiting company in business. A recruiting position is both a sales position (has sales quotas to meet) and as a recruiter (help you find a job). Unfortunately, there’s just a little too much conflict of interest with recruiters. The trouble comes because the employer pays the percentage fee after candidate placement is complete. So, while it may appear that they are helping you, the candidate, they are really more partial to the employer because that’s where their bread is truly buttered. When unemployment is high, they can find many candidates, but they only have that one position open.

So, the recruiter will do everything to keep the employer happy and, in most cases, couldn’t care less about the job seeker other than to get them placed. After all, there’s plenty of job seekers from which to choose. That said, they will definitely appear to care about the candidate so long as the hiring company still takes an interest in the candidate. Once the hiring company no longer expresses interest in the candidate or fills the job, that’s when the recruiter calls stop, emails stop and you can no longer reach the recruiter at all.

One other tactic of recruiters is to obtain resumes. So, if you had an old resume on file at a recruiting firm, expect to be called periodically to update your resume. The recruiter who calls you may even imply there may be jobs open with your skill set. In many cases, you are just feeding their database with another resume. In fact, they very likely had no job opening. Again, the recruiters have their job performance tied to doing work. Having spoken with you and obtained your updated resume probably suffices for one in their quota. Be wary of this practice. You’re helping them keep their job, but they may have no intention of helping you at all. They’re just stringing you along.

One other recruiting tactic to watch for is the phantom job tactic. The recruiter will claim to officially represent the hiring company. They tell you a job is open and that they are requesting a resume to submit. They will even put up a front and tell you they have submitted your resume for the position. Then, you never hear back from them. Why? Because they lied. They had no position open. They didn’t have any official status to represent the hiring company. So, how does this happen? Again, this is a quota issue. They need to make quotas, so the recruiter will string you along hoping the hiring company will agree to use the recruiting firm and then pay the commission. Unfortunately, the recruiting firm has not officially contacted the company until after they had your resume in hand. The trouble is, they didn’t have the company’s permission nor blessing. So, the recruiter contacts the company and the company says, “We don’t work with recruiters, sorry”. End of discussion.. no more contact. There is no way to really ensure the legitimacy of what a recruiter tells you. But, it certainly is a waste of time.

In the case of a recruiter, you necessarily won’t be out any money, but it can certainly take away valuable time that you could otherwise be seeking direct opportunities, submitting resumes or even updating your resume. It’s easy to get bogged down in recruiter time suck activities. So, be wary when recruiters come knocking.

Craigslist and Classified ads

While classified boards like Craigslist are great places to find job opportunities, it’s also a place to get scammed. So, if you choose to look for jobs in classified ads, make sure that you verify the company you are contacting. That means, check the phone book or the Internet to ensure that the phone numbers and addresses actually match the hiring company’s office address. You don’t want to end up in some seedy dive on a fake interview or being taken for some amount of money. If any money is involved before you get a job, walk away. There are way too many sites that can help you find jobs without fees.

Fee Based Job Boards

Some well known web employment listing sites charge subscription fees to help you find jobs. While I understand this web business model, the job seeker is most probably out of a job when seeking new employment. So, while paying monthly subscription fees might seem worthwhile, you may end up having no better luck in finding a job than using free services like Hotjobs, Dice or Monster. So, be cautious when asked to supply a credit card number to get access to a bigger database or get access to employment ‘review’ services. If you want to spend money, that’s up to you, but I’d recommend exhausting all other free avenues (and believe me, there are plenty) long before you throw your money away on for-pay job boards.

If you are months into your search and still have no leads after trying all of the free sites, then and only then would I try a for-pay job board. Some of these boards offer one month subscription periods. I’d recommend trying these job boards by paying for only one month and see how well it works for you. One month should be well long enough to dig through their database, submit resumes and see if you get any nibbles. You may find that it does nothing. Also, make sure that after the one month payment ends there are no recurring subscriptions still active. You don’t want to get any surprise fees on your credit card statement the next month.

Avoid the scams

If something looks too good to be true, it probably is. When seeking a job, you want to avoid being scammed out of whatever money you have… especially when unemployed. So, be cautious if a web site asks you to load a credit card number into their registration page. In short, don’t do it. If they require a credit card number to sign you up, skip that site and move on. If you do decide to part with your credit card number to get access, be sure to fully read all of the sites disclosures to understand how they charge for their services. If you can’t find how they charge for services, skip the site.

Good luck in your job search.

All comments are encouraged under the following rules: Comments will not be posted that contain personal attacks. Personal attacks only serve to degrade your comment, make you seem like a troll, weaken your stance and undermine your points. Please choose your words carefully. Thank you for contributing!

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