What most people don’t know is that recruiters get an average of 20% of the first year’s 1 salary for anyone they place in a job, adding up to $150+ billion dollars a year in the USA, and $638 billion globally. That impact comes directly out of companies’ bottom line profits. Instead of potentially re-investing in their business with sales programs, training initiatives or even larger salaries and bonuses, those billions are going into the pockets of recruiters. Recruitment firms ask for a lot of information - personal contact details, work history and skillset. The current industry incentivises gathering and storing of candidate’s private data to be later resold to third parties. But perhaps that’s unfair. Perhaps recruiters provide a valuable service that pays for itself in the long run? The reality is that too often agencies provide zero or minimal feedback to anyone except to the top 5% who recruiters earn their revenue from and even those candidates could be badly served. Recruiters value the elite candidates and do everything in their power to keep their clients a secret. If a candidate realises a household name has a lucrative vacancy, they could circumvent the recruiter and go direct. That’s why some recruiters write the vaguest possible job descriptions, even going so far as to use fake addresses and information just to throw jobseekers off the trail. Recruiters have also been known to post fake jobs to help build up their resume database but candidates unknowingly still spend time applying, hoping to get a job that never even existed. This is an industry ripe for disruption. In fact, it deserves it.
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