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Recruiters/agencies often try to keep the client information secret from competitors. The competitors may send fake emails/resumes and try to find more info abo
by guru4consulting 8y ago
Recruiters/agencies often try to keep the client information secret from competitors. The competitors may send fake emails/resumes and try to find more info about the clients and the billing rates for the position.. and use that information to contact the client directly and promise them better candidates with lower price.
Another reason is that more often, the recruiters don't add any value except connecting the client and the candidate (and take 30-50% cut for that service !!). Also, often there are multiple layers of sub-contractors (sub-vendors), who supply candidates and take their cut. There is nothing stopping candidate from walking directly to the client or the prime vendor and talk to them, and that's one of the reasons the smaller vendors hide as much info as possible and force you to sign various agreements before revealing the client name. I have seen this happening for 20 years and nothing much has changed. Smart guys learn to escape this in couple of years of contracting, but unfortunately, even some very tech savvy people may not be aware of all these shoddy business practices of recruiting industry. Many years ago, I helped a fellow programmer to raise his pay from around $75k to $160k (literally.. not exaggerating).
Often, I think about creating a service/product that changes this business model upside down. The reduced margins can be balanced by attracting more candidates who prefer simple, straight forward pricing for contract jobs.