HELP WANTED ... FINDING A JOB
I saw an ad in the newspaper
for jobs in corporate finance. I faxed my resume to
the 800-number listed and got a call from a woman who
said her company works with businesses to find employees
to fill their positions. She said the service would
cost me $495, but the fee was fully refundable if I
was dissatisfied or found a job on my own. She guaranteed
me interview opportunities and told me that if I found
a job through her company, there was a good chance my
new employer would reimburse me for the fee.
I never got any interviews, let
alone a refund, and now I can't even get the company
to return my calls.
—paraphrased from
a sample complaint letter to the FTC.
If you're looking for a job, you may
come across ads for firms that promise results. Although
many of these firms may be legitimate and helpful, others
may misrepresent their services, promote out-dated or
fictitious job offerings, or charge high up-front fees
for services that may not lead to a job. Some ads may
direct you to call a toll-free 800-number. Once you're
connected, you may be switched to a pay-per-call 900-number
without your knowledge, or you may be asked to call
a 900-number without a proper fee disclosure. Both practices
are against the law.
The Federal Trade Commission (FTC)
sues businesses that fraudulently advertise employment
openings and guarantee job placement. Consumers who
respond to these ads think they're contacting a bona
fide placement service that's seeking candidates to
fill specific jobs. Instead, they're reaching a business
that rarely helps consumers get employment through its
"services." To make matters worse, these businesses
invariably charge advance fees — ranging from
several hundred to several thousand dollars —
for their "services," typically imposing the
fees without consumer approval, or promising —
falsely — that most or all of the fees ultimately
will be refunded.
Types of
Employment Service Firms
When you're looking for help in finding a job, it's
important to understand the differences among employment
services. Many terms, such as employment agency, personnel
placement service, executive search firm, or executive
counseling service are used interchangeably. Find out
what services a firm offers, how much the services cost,
and who pays. If you're required to pay the fee, find
out what you'll owe if the employment service fails
to find you a job or any leads.
Six basic types of service companies/agencies
offer consumers help in finding a job. They include:
public employment services; employment agencies; executive
search services; temporary help services; executive
counseling services; and job listing services.
- The federally-funded and state-operated Public
Employment Service, also known as the Job Service,
operates in all 50 states, the District of Columbia,
Guam, Puerto Rico, and the Virgin Islands. The Employment
Service provides Internet access to America's Job
Bank (AJB). On any given day, this national resource
lists hundreds of thousands of job opportunities.
It also provides links to numerous employment and
training programs in each state, including programs
for people with disabilities, minorities, older workers,
veterans, welfare recipients, and young people. There
are some 2,300 points of service nationwide; about
1,700 of them are full-time, full-service offices.
The Employment Service provides its services free
to both employers and job seekers. Openings range
from entry level to technical and professional positions.
Visit www.ajb.dni.us
for more information.
- Employment agencies or personnel placement services
work to fill specific positions available within companies.
Their purpose is to bring applicants and employers
together. Often, the hiring company pays the placement
fee, but when state law permits, you and the employer
may share the fee or the fee may be billed to you
after you've been hired. Employment agencies usually
are licensed in the state where they do business.
- Executive search firms or executive recruiters
are hired by businesses to find the "right"
person for a particular job within an organization.
Recruiters sometimes are referred to as "headhunters."
The executive who is hired doesn't pay the fee; it's
part of the agreement between the hiring business
and the search firm. Executive search firms usually
subscribe to a code of ethics established by industry
members; some firms are licensed by the states where
they do business, as required by state law.
- Temporary help services supply workers
to businesses on a temporary or as-need basis. Businesses
pay an agreed-upon wage to the temporary service for
work performed by the employees. The temporary service
firm pays the workers, not the temporary employer.
- Executive counseling services or career counseling
services help job seekers with career directions
and decisions more than with job placement. They may
offer services like skill identification and self
evaluation, resume preparation and letter writing,
and general information about companies or organizations
in a particular location or job field. Fees can be
as high as $4,000, and payment often is required before
services are provided. You'll probably have to pay
this fee even if you don't find a job. Placement is
not guaranteed. State law dictates whether executive
counseling firms are licensed.
- Job listing services or advisory services
sell information about getting a job in the U.S. or
abroad. They often use pay-per-call 900-numbers to
do this. They do not provide actual job placement.
Information may include lists of job openings, general
tips on conducting a successful job search or interview,
and broad guidance in resume writing. These advisory
firms often require an up-front fee for their listings.
Protecting
Yourself
Before you spend any money responding to job ads or
completing job placement contracts, the FTC suggests
that you:
- Be suspicious of any employment-service firm that
promises to get you a job.
- Be skeptical of any employment-service firm that
charges up-front fees, even if it guarantees refunds
to dissatisfied customers.
- Don't give out your credit card or bank account
information on the phone unless you're familiar with
the company and agree to pay for something. Anyone
who has your account information can use it to commit
financial fraud against you.
- Get a copy of the firm's contract and review it
carefully before you pay any money. Understand the
terms and conditions of the firm's refund policy.
Make sure you understand what services will be provided
by the firm and what you'll be responsible for. If
oral promises are made that don't also appear in the
contract, think twice about doing business with the
firm.
- Take your time reviewing the contract. Don't be
rushed into paying for services. Avoid high-pressure
sales pitches that require you to pay now or risk
losing out on the opportunity.
- Be cautious about purchasing from a firm that's
reluctant to answer your questions or gives you evasive
answers.
- Be aware that some listing services and "consultants"
may place ads that seem to offer jobs when, in fact,
they're selling employment information.
- Follow up with the offices of any company or organization
listed in an ad by an employment service, to find
out if the company's really hiring.
- Be wary of firms promoting "previously undisclosed"
federal government jobs. All federal positions are
announced to the public.
- Check with your local consumer protection agency,
state Attorney General's Office, and the Better Business
Bureau to see if any complaints have been filed about
a company with which you intend to do business.
In addition, federal law prohibits
the use of a toll-free number for pay-per-call 900-number
services. This means that anyone calling a toll-free
number cannot be charged simply for completing the call,
and that a toll-free number call cannot be transferred,
or connected to, a pay-per-call 900-number service.
Federal law also prohibits any telephone message that
solicits calls to a pay-per-call 900-number service
from failing to disclose the cost of the call.
For More
Information
A variety of free and low-cost resources are available
to help you in your job search.
- Job Service offices post vacancies and
offer counseling and referrals to other job resources.
- Local and county human resources offices
provide some placement assistance. They can give you
the names of other groups that may be helpful, such
as labor unions or federally-funded vocational programs.
- University, college and community college career
service offices usually limit their help to students
and alumni, but some may let you look at their current
job listings.
- Local libraries can direct you to information
on writing a resume, interviewing, or compiling a
list of companies and organizations to contact about
job openings.
- The Internet, through major online services
and electronic bulletin boards, has information and
options to help you, including classified ads and
resume postings.
Where to
Complain
If you have a problem with an employment-service firm,
contact your local consumer protection agency, Better
Business Bureau, the appropriate state licensing board,
or your state Attorney General.
If you have problems with charges
on your phone bill for 900-number calls to fraudulent
businesses, contact your telephone company immediately.
No phone company is obligated to delete the charges,
but you should ask. Call your carrier or the Federal
Communications Commission for policy information.
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