Title says a lot of it, but it's something I've noticed while stuck in the vortex that is the current job market.
EDIT: ...I can't edit the title, because Reddit lol....but just realized how wonky the last of that ended up phrased. New Title:
Anyone else feel like staffing firms have taken over too much of the market, charge too much to justify what they actually do, and basically leech off of people because companies have gotten too dependent on being too cheap to hire their own hiring teams? "
And it's not as harmless as people let on...actually feels like it's instead really gotten outta hand.
Got an email I'm pretty sure I wasn't supposed to get, and haven't been able to frame my thoughts on this differently, because of how "like clockwork" things played out. Was working for about $45/hr, wage-contract. Definitely was excited, as that's the most money I would've ever made.
But then the welcome email hit, and they left an email in the chain that they weren't supposed to: "Is [my name] approved for the hourly rate of [hourly rate] and 40hrs per week?"
...the hourly rate that the staffing company was charging was $110/hr. for my work. ... while paying me $45. The reason that bothers me isn't what you think...
Stepped back before reacting, because I was also new to staffing arrangements, so I was like "okay...maybe this is one of those moments where it's completely normal and ends up making itself worth it in the end. Don't take the "ugh why are you making more than me off my own work?"
It didn't bother me that they were charging nearly 2.5x my pay... but what immediately popped into my head was "I have to justify $110/hr with my work...as soon as things start to go weak here, I'm the first gone." and I watched it play out like clockwork.
Busted my booty trying to provide as much value as possible. But inevitably, within 2 months, they lost one big client, and then suddenly no budget to pay me anymore. Wasn't even my fault, and yeah I get people get let go frequently for similar reasons.
But I can't stop thinking about the fact that that wouldn't have happened if it weren't for the $110/hr that they couldn't pay...and had one of their managers even say that they could otherwise afford a regular developers rate
That should've been my moment to be able to say "I could work for $40/$45 per hour." (what I was being paid anyway)
But I can't, because staffing companies go an extra level of lockdown greedy, and put NCA/Non-solicits in their contract.....even if they're the ones failing to provide the service, I can't take it over at a lower rate.
And I'm just stuck in this cycle knowing that that staffing company did absolutely nothing to justify the margin. All they did was facilitate the initial interview, and then occasionally they call or text (as in once every 1-2 months) to ask me "how ya doin?" "Still no job...how do you think I'm doing..." "oh..well go look on our in-house job board and let us know if you find anything you're interested in."
Yet I know I could get that previous client to say yes to me. The entire team loved the work I was doing, and even though they knew I was contract-based, at least once a week I'd get a message from some random team member going "Are you sticking around?"
Yet I can't...because of staffing firm greed.
And now that I'm back in the job market, I'm not touching anymore staffing / recruitment / talent firms, yet now that I know what to look for, I see them everywhere, and shake my head every time. People like Dice, Robert Half, Insight Global, and then a few companies trying their hand at AI versions of it...It's like now it's incredibly hard to simply talk to the actual business that's hiring (or at least ti feels like it) and everything's getting proxied through staffing/talent firms.
It's all built around needlessly inserting themselves between clients and employees, and then taking a massive cut of the pie in the process, while they do absolutely nothing to justify needing that, nor do they provide ANY of the job-securities that they promise during on-boarding.
And then you look at their linkedin profiles and whatnot? All they do is talk about account managers and recruiters, etc. That's all their personalities are....are injecting account managers and recruiters into the ecosystem, needlessly and without actually doing what they're meant to do.
All they do is make the initial meetings happen and then expect a 150% markup of what they pay you, ad-infinitum, while providing none of the benefits they promised, and while actively blocking everyone from otherwise getting the job fairly by trying to hoard exclusivity with clients.