The ups and downs of working with Agencies

Riley Taylor has a healthy suspicion of staffing agencies, even though he's been working with them for 15 years. Riley's a freelance programmer. In his industry, you generally have to go through an agency to get work, because client companies don't have the time or the inclination to hire programmers directly. We asked him to fill us in on the ups and downs of working with agencies -- and how he avoids the pitfalls: http://www.guru.com/channel/tech/portrait/P11811.jhtml

Database developer Riley Taylor

Although Riley Taylor has a healthy suspicion of recruiters, he's been working with them for 15 years. Riley's a freelance programmer. In his industry, you generally have to go through a recruiter to get work, because client companies don't have the time or the inclination to hire programmers directly. We asked him to fill us in on the ups and downs of working with recruiters -- and how he avoids the pitfalls.

Why use agencies instead of finding clients on your own?

If I'm lucky, I do get work on my own, usually through old clients. However, as a programmer, I typically work on an exclusive basis with one client for the duration of a contract, which can be from 18 to 36 months. That means it's unlikely that a former client will have a contract for me at the same time that I need a job.

Programmers often have to work through agencies because IS clients are overworked, outgunned, undermanned, and they don't want to deal with the hassle of placing a contract body. What's more, most managers don't have the technical background needed to evaluate a candidate's skill set.

So companies go through recruiters because they don't have the time or the expertise to hire programmers directly?

And because they don't want to be exposed to any liability. IS clients like to keep an intermediary between themselves and the consultants. Preferred vendor lists are another reasons companies use recruiters. I got my current client because I'd worked with the manager before at another company -- and he still went through a recruiter! He had no choice. The company has a preferred vendors list and you have to be on that list to do business with them.

What makes a good recruiter good?

They're straight up with you about the rate. They'll tell you what the markup is -- so you know what you get and what they get. Keep in mind that there are consulting companies out there and then there are what we call "body shops." It's pretty easy to tell the difference between the two. With a body shop, the person you talk to on the phone knows nothing about the project or the rate. Their real mission is to get a resume from you so they can use your work history to get leads on potential clients.

They want to know who you worked for so they can solicit your former manager at the client company?

Yes. That's why I only include the name of the company I worked for on my resume. I don't provide any contact information -- so it's absolutely worthless to them.

How can you tell if a recruiter is legit?

I ask a few questions: Is this a current opening? Do you have a firm grasp of the client rate? Tell me what the job is -- what am I going to be doing? If I can't get straight answers to those questions, I know I'm dealing with a body shop.

What percentage of the client fee do recruiters generally take?

In today's market, taking 25 percent is generally considered middle of the road. Recruiters always try to get a big cut of the rate for themselves up front. Then, when the consultant negotiates, they try to beat down the consultant's rate instead of getting more money out of the client. They'd rather make the consultant mad, because we're the expendable quantity.

I'm confused. There's a big labor shortage in the IT industry. I'd think there'd be far more clients needing programmers than programmers needing jobs.

Perhaps, but agencies can typically find contractors more easily than they can find customers. If you advertise even fleetingly on the Internet for a job, you can raise a few programmers. You can't find clients that way. You've got to visit them in person, press the flesh, and buy the lunches.

Large recruiting companies actually have separate recruiters and account managers. The account manager is the salesperson who deals with the client companies. Since that's their customer, they're oriented toward clients' interests. The recruiter tries to act as a buffer between the contractor and the account manager.

Do recruiters do anything for you besides provide job opportunities?

The good ones do. They have a good understanding of the kind of technology the client company is using and what the interview will be like: who's going to be there, what they're looking for, what they're afraid of, and what they've been through in the past, good and bad. If the recruiter hasn't done the homework and can't tell you anything about the project or prepare you for the interview, then what good are they?

As a contractor, you walk into an interview and you've usually got two minutes to decide who you are going to be. Are you confident? Or are you on the verge of being arrogant because these people are scared and they need help? Are you talented but demure and submissive because they've had jerks before? If the account manager is any good, they'll have done that research already.

With all the hassles of job hopping and dealing with recruiters, why stay a contractor? Why not take a fulltime job?

As a contractor, I get to write code. I get to accomplish things. I wouldn't be able to as an employee. I'd have to go to meetings, I'd have to fill out paperwork, I'd have to manage people. Companies bring contractors in for a very specific purpose, and that's what they want you to do. I like what I do. That's the main reason I'm self-employed. This is the only way I get to do it.