Does it ever make sense to pay someone to get you a job?
If you've been out of the market since late 2008, and still can't get back in, despite what is apparently soaring recruitment and emergent skills shortages, you may be tempted to pay someone to help you get your next position. Equally, you may be tempted to pay for assistance if you're a student who wants to get into banking, or if you're currently stuck in the back or middle office and want to move to the front.
Will you simply throwing your money down the drain?
Maybe, if you're not careful. Career counselling company Bernard Haldane came in for criticism in the US several years ago for allegedly selling access to a secret jobs market, when all it had was access to standard jobs databases.
"The private outplacement business has a bit of a bad reputation," says Michael Moran, chief executive of outplacement provider Fairplace, which only offers its services on a corporate basis. "People will charge anything from 10k- 25k to help you find a new job, but the truth of the matter is that the person who gets you a new job is you."
One student at a top UK university complains of unscrupulous private careers advisors touting for business on campus: "Everyone's fighting for positions at investment banks, and some students are desperate enough to pay a lot of money for extra assistance.
"There's one guy in particular who tries to emotionally blackmail you into buying his services," he complains. "He points out how much your parents are paying for you to go to university and says his fees aren't much by comparison. The advice he then gives you really isn't any good and he can be very critical."
What's on offer?
If you're thinking of paying for someone to help you find a new position, the options range from simple CV writing services (costing around 250) to full handholding, interview preparation and introduction to headhunters. The more comprehensive the service, the more enormous the fee.
In the UK, the 1973 Employment Agencies Act makes it illegal for agencies to charge individuals to actually find new roles. InterExec, which helps senior executives earning more than 150k find alternative employment, and introduces them to headhunters, has 'special dispensation' from the government to do so.
When to pay?
If you've exhausted all other options and are planning to pay thousands of pounds to an individual or organisation to help you find your next role, Moran advises running through the following checklist:
Track record: Ask who else they've worked with in your sector; do they have any clients who've worked with them recently and who can give you testimonials on their efficacy? Who have they worked with in the past three months?
Process: Ask what the process will be? What are you paying for exactly? How will
they give you introductions to potential employers/headhunters?
Materials: Have they got a website, what are their online resources like?
However, Moran advises against paying people who claim they can get you a job or can introduce you to people in their network. "It's nonsense," he says. "You'll be much better off if you approach people directly."
Who's in the market?
There are various companies and individuals offering advice to people looking for new employment. They include the companies and individuals below. We can't vouch for their effectiveness:
Only works with people earning six figures. Doesn't usually work with investment bankers who want to stay in the sector. USP is its headhunter contacts and the fact that it's. 'informed of approximately a third of all assignments filled by headhunters,' which may not be advertised.
Declined to comment on fees, but thought to be substantial.
Not dissimilar to InterExec.
Run by ex-Goldman trader Peter Harrison, focused on students and junior bankers because, "experienced bankers need interviews rather than intensive interview coaching."
Helps with, "every single part of the job search process - apart from writing CV/resumes, cover letters and application forms." Has a 100% success rate, but will sometimes ask students to lower their expectations. Fees are a percentage of first year salary. Students say they can be considerable.
eFinancialCareers also offers access to paid-for careers assistance through the Careers Services area of the site.
