Consumer adviser Clark Howard is warning job seekers to exercise caution before paying fees to recruiters for job leads or interviews. Howard noted that a difficult employment market has led to an increase in people paying for professional hiring assistance.
The current job market has seen a slowdown in what is known as “velocity” as many employers remain hesitant to hire new staff. Additionally, employees who might typically leave their current positions for new opportunities are choosing to stay in place due to economic uncertainty.
The Wall Street Journal recently reported a trend of job seekers paying fees to recruiters to secure interviews. Some individuals are also paying commissions based on their future salary once they obtain a new position. Howard noted that these payments occur as people face increasing difficulty in their job searches.
Consumer adviser Howard advised extreme caution regarding these financial arrangements.
“I want you to be very, very careful before you start paying a job recruiter for a supposed lead because you don’t know if that lead is going to be solid,” Howard said. He explained that paying for leads does not guarantee a quality employment opportunity.
Furthermore, Howard stated that these upfront costs can exacerbate existing financial problems for those seeking work.
“It could bury you in more difficult circumstances than you were in just looking for a job,” Howard said. He noted that the uncertain nature of these leads could leave individuals in a worse position than when they started their search.
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