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7 Tips for Dealing With Recruiters
After writing my previous rant about recruiters titled Trapped in Recruiter Hell. I decided that it might be beneficial for me to compile a list of tips for dealing with recruiters to alleviate some of the hassles. There are several mistakes I see people make, or things that contractors just aren’t aware of before jumping in to a contract position.
Is It Really A Good Opportunity?
When looking at any job offer through a recruiting firm the first and foremost thing to remember is that recruiters are sales people. Despite what any recruiter says, they are not out for your best interest. They are out to get paid and make their commission off of your placement. The rate they offer you is determined by them for maximum profit on their end, not what they feel is fair.
The person contacting you has probably merely scanned your resume looking for buzzwords and thats if your lucky. They have not paid a bit of attention to any detail inside your resume so don’t take their word about how great an opportunity is. See my previous post Trapped in Recruiter Hell for a good example of this.
Be sure to ask a lot of questions about the position. I have dealt with many recruiters who knew less about the position they were trying to fill than they knew about me. If you’re uncomfortable about any aspect of it walk away. Don’t get yourself into a bad position its not worth it.
Moving across the country for a 3 month contract with possibility for a permanent position is not a good opportunity, not for anyone. Unless maybe they are offering you a substantial amount of money and relocation help, just don’t go and sell your house. I’ll come back to this later.
Negotiate! Negotiate! Negotiate!
It still astonishes me how frequently I talk to leased workers who came in at an extremely low rate simply because thats what they were offered. A useful piece of advice is never take what they are offering, recruiters will always low ball you. Keep in mind the recruiting firm is making a lot of money off of you, the rate at which the employer pays them is far higher then what they are offering you. Tap into their profits a bit, get yourself a good rate.
Most recruiters will not give you benefits unless you ask them for them. Be sure to ask if they’re offered. If they do not, insist they furnish you with a couple more dollars an hour to account for them. I have yet to have a recruiter decline this request. My most recent encounter I ended up receiving both the benefits and the higher rate.
Payment Terms
Save yourself the hassle don’t fall in to the 1099 trap. Many recruiters will try to get you into companies under a 1099 Independent Contractor agreement. This opens up a whole can of worms you don’t want to deal with. Be prepared to pay around 15% more in taxes because your paying all the employment taxes yourself. You will want to store money throughout the year or make quarterly payments so your not in for a huge shock at the end of the year.
Try your best to work under W-2 as a standard employee so the recruiter is covering a portion of the taxes. If you cannot work under a W-2, do yourself a favor spend the $400 and form an S-Corporation. This way you can pay yourself a portion of your pay as a salary and the rest as dividends. This will save you from paying employment tax on all of your income. It will also put you in a position to be more aggressive with your deductions. I have met several contractors who will only do Corp-to-Corp billing.
Expect To Be Extended
Don’t count on being converted after your 3, 6, or 9 month contract is complete. Despite what percentage of people your recruiter tells you get converted. The facts are not in your favor. Most companies rarely hire on after the first contract especially if it’s a contract as short as 3 months. They more often then not will extend you out for a longer period of time. Be prepared. Keep in mind, a lot of employers who use leased workers have several at a time, you are competing for the same permanent positions as all the other contractors, the ones before you, and even ones after you if they are exceptional workers.
Contractors are often hired because more staff is needed to get a project / company off the ground, and far less to maintain it or continue running the project after its been launched. So as sad as it may be you have to come to the realization that not all contractors will be converted. Which brings me to the next point.
Mitigate Risk
Recruiters lie, they embellish. They try to make your opportunities with the company out to be more then they really are. I’d say 75% of contract workers are only working under contract for the chance to take the permanent position. A recruiter will not tell you your chances are slim. So you need to mitigate the risk of being left unemployed.
Make sure you save money, don’t take all that money you’re making and throw it away on new gadgets and toys. Contract positions come and go, they are risky thats why you make more then a salaried employee.
Don’t sell your house and move out of state, or across the state. You don’t want to be left in a position in 6 months where you don’t get that permanent position you were counting on, and now you need to find a new job, and find a new home. The converse of this is also true. Don’t up and by a house near your contract position to have the chance that in 6-9 months you will need to find your next contract position and close a lot of doors for yourself because you are unable to sell your house.
Do not wait until the last minute to look for something else, give yourself at least a month, preferably 1 1/2 to 2 months to find a new job. If it gets this close to the end of your contract without any traction being made to convert you or extend your contract its not worth the risk. It is their fault for not keeping up on it. Always keep your options open.
Prevent Resume Rot
Resume Rot is a horrible thing. You end up in a contract position using all these out dated skill sets and before you know it the industry has changed, and your left back out in the job market hunting. Keep yourself up to date on current industry standards and technologies. This will keep you in a good position if things don’t work out where your at.
Follow Up
Be sure to follow up regurally with your recruiter about the status of your contract. Don’t count on them to contact you. It’s unreliable. Make sure you jump on their case to find out about an extension with plenty of notice in advance. They may drop the ball.
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April 4th, 2008 at 10:58 am
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