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The Recruiting Industry

History
Before the 1950's, recruiting was networking. Executives would ask friends if they knew anyone who could fill particular positions. The most common were bankers, lawyers and accountants. Firms began to establish consulting groups and thus began to form in North America.

At first these groups resisted expanding into England and Europe because of the differences in practices, then a few started opening large branches and began filling positions. After this, the industry grew and people started forming their own recruiting business.

The competition for candidates and clients increased and today many firms compete and establish offices countrywide. National firms compete with local firms, and several are multinational.

Licensing
The Employment Agencies Act requires Ontario recruiting businesses to pay registration fees to be a licensed agency. There are similar laws all across Canada.

In the past, candidates would have to pay to register and then pay an additional charge when hired by a company. Candidates found the recruiters weren't marketing them and complained to the licensing legislation until charging candidates was barred. Now, recruiters only collect fees from hiring firms that hire these recruiters.

Types of Billing

Recruiter Specialization

Types of Recruiting Firms

The Recruiter Profile
Recruiters are excellent communicators as they spend many hours talking on the phone to clients and candidates. They also work later hours so they can call candidates when they will be home, at night. More senior recruiters train new Recruiters, and many come from their industry specialty before they begin recruiting.

These individuals are also strong in marketing and in the personnel field. They understand the needs of their clients and sometimes have a candidate on file in mind for a particular position while talking to a client. The recruiters also know the candidates in the workforce and have an overview of the industry.

When recruiters talk to candidates, some may seem distant if they don't have a position for them. Don't take this personally, as candidates are the commodities they sell and can be a valuable ally in a job search.

The Future of Recruiting
The flexibility of recruiting enables good recruiters to stay in business for years and thus have an excellent reputation. The number of jobs available is the driving factor of recruiting and so will always be a part of the hiring and job search process.

Most firms dealing with temporary and low salary positions see an expansion of national firms in most cities and can offer more services to clients. With this, associations will continue to grow and the local firms can use this to compete effectively. National firms have little effect in the middle market segment. Value to the clients is the relationship with individual recruiters and the quality of the candidates provided.

In the current economy, there will be more competition for fewer jobs and some firms will expand their offerings. For example, Executive Industry Firms will offer consulting services. Those who can adapt and append their services will survive.

All recruiters use computers as the software allows resumes to be placed in databases to be search on with keywords. The Internet is a popular way to advertise positions and recruiters will utilize this. Some operate a paperless office where resumes are delivered on a disk or through a modem.

Contract work is also becoming more popular. Companies will hire contractors for projects lasting three months to a year or more, and recruiters can have candidates on file and clients can request a specific contractor who worked with them before. Contract work is also more acceptable to job seekers, and is considered more to be a real job. It's diverse, they have control of their work, and they can receive a higher rate of pay.

Types of Non-Recruiting Firms