Staffing Firms

[vision33r]

Staffing firms basically acts as an agent but in most cases they aren't performing any negociations like you see in sports. They're simply working to extract the most out of either side. When I was a manager, a recruiting firm would approach me, take me out to lunch often and send their nicest and best looking people to persuade me to sign exclusive hire deals so I can't just go through another firm or I can't talk directly to a candidate directly. Certainly they won't allow any candidates to discuss salary with us directly which is the game they play. They would seek out all candidates that you may want to pursue but have them all represented under their firm so you have no time to find other candidates then try to pull the salaries up so they can charge a very good fee.

These firms today are setup for most contract jobs, they would go on Linkedin or Monster and pull candidates out and with authorization submit them to their clients. Then they will act as "traders" try to negociate hourly rates with both parties and make a cut on whoever they can exploit.

A company paying $100/hr, the agency could get someone for $40-60 so they make $40-60 depending on the market.

Since I am a contractor, I often approach a client and ask for direct 1099 contracts but often they tell me they have a non-compete agreement they cannot sign any independent contractor or agencies not on their list.

Obviously someone up in the establishment chain setup these rules and are getting paid for these arrangements.

[new_to_jersey]

sometimes the staffing firms say , for a contract say A, I can only offer W2 but for contract B we can offer 1099 .
Assuming both contracts are with same client.


Does anybody know how does staffing firm decide which contract can go W2 or 1099 ? Is it driven by client or entirely upto staffing firm ?