Employment agency

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An employment agency (hereinafter, the Agency) is any legal entity that matches employers and employment candidates for hire. The Agencies represent either (a) employers when dealing with workers or (b) workers when dealing with employers. This model distinguishes the Agency from workforce dealers, which hire workers as employees to perform another entity's work.



Various Agencies can be categorized based on their payment models.

Agencies vs dealers

Both the Agencies and workforce dealers deliver employment placements. However, their delivery models are the opposite.
The Agencies don't hire the workers. These Agencies offer their clients potential workers for hire, while charging their clients recruitment fees. Their clients either (a) act as employers and hire the workers as employees or (b) hire the workers directly as independent contractors.
On the contrary, the workforce dealers hire the workers directly as employees. Legally, the dealers act as employers, while charging their clients for services performed by their employees.

An employment agency is any person who conducts in whole or in part a business which, for a fee, procures or attempts to procure permanent or temporary help or employment or engagements, or registers persons seeking such help, employment, or engagement, or gives information as to where and of whom such help, employment, or engagement may be procured, where a fee is exacted or attempted to be collected from a job applicant or worker, or if the agency places domestic employees. A domestic employee is any worker who is paid directly by a household, family, or individual to perform work of a domestic nature, including, but not limited to, housekeeping, home management, nanny services, child monitoring, caretaking, laundering, cooking, home companion services, house sitting, and butler services for members of households or their guests in or about private homes. Domestic Employee does not include a person who performs services of a domestic nature as an employee of the business that places him, or a licensed medical professional, such as a medical doctor, registered or licensed practical nurse, or similarly trained and licensed individual who performs services relating to the delivery of specialized medical care. A placement agency is any person who conducts in whole or in part a business in which a fee is exacted or attempted to be collected for procuring or attempting to procure permanent or temporary help or employment or engagements; or registering individuals seeking such help, employment, or engagement; or giving information as to where and of whom such help, employment, or engagement may be procured, but who: (a) employs such individuals for the purpose of furnishing part time or temporary help; or (b) does not assess job placement fees to any job applicant or worker; or (c) conducts a business which consists solely of providing employers or prospective employers, by electronic means, biographical information, background and experience of applicants for temporary employment, help or engagement.

Agencies that procure or provide temporary or part time employment to any individual who then works under the supervision or direction of a work site employer are staffing agencies. There is not a “staffing agency license” or “staffing agency registration;” staffing agencies must always be either licensed as employment agencies or registered as placement agencies with the Department of Labor Standards. Staffing agencies are also subject to the Temporary Workers Right to Know Law (TWRTK) (M.G.L. c. 149, sec. 159C).

Job placement is a service that educational institutions, employment agencies and recruiters offer to help individuals find work. Examples of placement programs include a university helping students find internships and practice interviewing, an employment agency offering vocational counseling and job leads to job seekers, and the military helping prepare soldiers for suitable careers during and after their service. Depending on where you receive placement services, the program may be free, or you may be responsible to pay for some or all of the cost.

Colleges and universities typically have a placement program, meaning a placement officer will meet with students prior to graduation to discuss employment strategies. This placement offers helps you develop an appropriate job-seeking approach, depending on your education, skill levels and personal circumstances. This usually includes writing a resume, practicing interview techniques and going out on job leads the placement officer has already vetted. Employment placement departments may also help students and graduates secure internships, work-study opportunities and part-time employment.

Employment Placement Agencies

Employment placement agencies work to create relationships with a number of large employers for whom they screen and place employees for both temporary and permanent positions. Signing up with an agency to help with your job search usually means working with a placement representative to discuss your career goals and objectives. Based on the information you supply and your credentials, the agency will arrange for you to interview with suitable employers they have contracts with for positions for which you’re qualified.

Recruiters and Headhunters

Recruiters and headhunters are people and companies that specialize in finding appropriate employees for high-level positions in different industries. A corporate recruiter may come seeking you with a placement opportunity, based on past performance or recommendation. You also have the option of approaching headhunting companies or executive recruiters and asking for representation.

Social Services and Military

Some government and social service agencies provide job placement assistance for displaced workers and unemployed individuals. This can include people who are transitioning from one line of work to another due to injury or disability; formerly incarcerated people reentering the workforce; or those who are receiving state assistance and must seek employment as a condition of receiving financial compensation. The U.S. military provides a form of job placement when assigning new recruits to branch positions for which they are best qualified. The military, as well as some private placement firms, also assists veterans and those leaving the armed forces transition to civilian life by offering career counseling, training and employment referrals.

Paying for Job Placement

Most educational institutes offer job placement assistance as part of their overall tuition agreement. Employment agencies typically bill employers for the cost of finding them appropriate employees, but in some cases the job-seekers are required to pay a portion of their initial salary back to the agency. If a recruiter comes looking for you on behalf of an employer, you may or may not be solicited for a fee; however, if you hire a company to help with a high-level position you’re likely to pay an upfront or post-placement fee. Government and social services are typically free of charge.

See also

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