Employment agency
Encyclopedia
An employment agency is an organization which matches employers to employees. In all developed countries there is a publicly funded employment agency and multiple private businesses which also act as employment agencies.
proposed an "Office of Addresses and Encounters" that would link employers to workers. The British Parliament rejected the proposal, but he himself opened such a business, although it was short-lived.
Since the beginning of the twentieth century, every developed country has created a public employment agency as a way to combat unemployment and help people find work.
In the United Kingdom the first agency began in London, through the Labour Bureau (London) Act 1902, and subsequently nationwide by the Liberal government through the Labour Exchanges Act 1909
. The present public provider of job search help is called Jobcentre plus
.
In the United States, a federal programme of employment services was rolled out in the New Deal
. The initial legislation was called the Wagner-Peyser Act of 1933 and more recently job services happen through one-stop centres established by the Workforce Investment Act of 1998.
as a response to the problems brought on by the 1906 San Francisco earthquake
and fire.
Many temporary agencies specialize in a particular profession or field of business, such as accounting, health care
, technical
, or secretarial
.
instead called for the establishment of public employment agencies. To prevent the abusive practices of private agencies, they were either to be fully abolished, or tightly regulated. In most countries they are legal but regulated.
Probably inspired by the dissenting judgments in a US Supreme Court case called Adams v. Tanner
, the International Labour Organization's first ever Recommendation was targeted at fee charging agencies. The Unemployment Recommendation, 1919 (No.1), Art. 1 called for each member to,
The Unemployment Convention, 1919, Art. 2 instead required the alternative of,
In 1933 the Fee-Charging Employment Agencies Convention (No.34)
formally called for abolition. The exception was if the agencies were licensed and a fee scale was agreed in advance. In 1949 a new revised Convention (No.96)
was produced. This kept the same scheme, but secured an ‘opt out’ (Art.2) for members that did not wish to sign up. Agencies were an increasingly entrenched part of the labor market. The United States did not sign up to the Conventions. The latest Convention, the Private Employment Agencies Convention, 1997
(No.181) takes a much softer stance and calls merely for regulation.
In most countries, agencies are regulated, for instance in the UK under the Employment Agencies Act 1973
, or in Germany under the Arbeitnehmerüberlassungsgesetz (Employee Hiring Law of 1972).
Some third-party recruiters work on their own, while others operate through an agency, acting as direct contacts between client companies and the job candidates they recruit. They can specialize in client relationships only (sales or business development), in finding candidates (recruiting or sourcing), or in both areas. Most recruiters tend to specialize in either permanent, full-time, direct-hire positions, or in contract positions, but occasionally in both. In an executive-search assignment, the employee-gaining client company – not the person being hired – pays the search firm its fee.
. Whilst the Employment Agencies Act 1973 prohibited employment agencies charging, in November 2008, there was a European amendment to (c. 35), in section 9 (inspection), subsection (4), of the act[4].
Public employment agencies
One of the oldest references to a public employment agency was in 1650, when Henry RobinsonHenry Robinson (writer)
Henry Robinson was an English merchant and writer. He is best known for a work on religious toleration, Liberty of Conscience from 1644.-Life:He was educated at St John's College, Oxford, and was a freeman of the Mercers' Company...
proposed an "Office of Addresses and Encounters" that would link employers to workers. The British Parliament rejected the proposal, but he himself opened such a business, although it was short-lived.
Since the beginning of the twentieth century, every developed country has created a public employment agency as a way to combat unemployment and help people find work.
In the United Kingdom the first agency began in London, through the Labour Bureau (London) Act 1902, and subsequently nationwide by the Liberal government through the Labour Exchanges Act 1909
Labour Exchanges Act 1909
The Labour Exchanges Act 1909 was an Act of Parliament which saw the creation of Labour Exchanges. The stated purpose was to help the unemployed find employment....
. The present public provider of job search help is called Jobcentre plus
Jobcentre Plus
Jobcentre Plus was a government agency for working-age people in Great Britain. The agency was formed when the Employment Service, which operated Jobcentres, merged with the Benefits Agency, which ran social security offices, and was re-named Jobcentre Plus on 1 April 2002...
.
In the United States, a federal programme of employment services was rolled out in the New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...
. The initial legislation was called the Wagner-Peyser Act of 1933 and more recently job services happen through one-stop centres established by the Workforce Investment Act of 1998.
Private employment agencies
The first private employment agency in the United States was opened by Fred Winslow who opened Engineering Agency in 1893. It later became part of General Employment Enterprises who also owned Businessmen's Clearing House (est. 1902). Another of the oldest agencies was developed by Katharine FeltonKatharine Felton
Katharine Conway "Kitty" Felton is a name that became synonymous with social work for her innovative reforms over the 40 years of her tenure as head of Associated Charities in San Francisco beginning at the turn of the 19th century....
as a response to the problems brought on by the 1906 San Francisco earthquake
1906 San Francisco earthquake
The San Francisco earthquake of 1906 was a major earthquake that struck San Francisco, California, and the coast of Northern California at 5:12 a.m. on Wednesday, April 18, 1906. The most widely accepted estimate for the magnitude of the earthquake is a moment magnitude of 7.9; however, other...
and fire.
Many temporary agencies specialize in a particular profession or field of business, such as accounting, health care
Health care
Health care is the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans. Health care is delivered by practitioners in medicine, chiropractic, dentistry, nursing, pharmacy, allied health, and other care providers...
, technical
Technical analysis
In finance, technical analysis is security analysis discipline for forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis incorporate technical analysis, which being an aspect of active management stands...
, or secretarial
Secretary
A secretary, or administrative assistant, is a person whose work consists of supporting management, including executives, using a variety of project management, communication & organizational skills. These functions may be entirely carried out to assist one other employee or may be for the benefit...
.
Legal status
For most of the twentieth century, private employment agencies were considered quasi illegal entities under international law. The International Labour OrganizationInternational Labour Organization
The International Labour Organization is a specialized agency of the United Nations that deals with labour issues pertaining to international labour standards. Its headquarters are in Geneva, Switzerland. Its secretariat — the people who are employed by it throughout the world — is known as the...
instead called for the establishment of public employment agencies. To prevent the abusive practices of private agencies, they were either to be fully abolished, or tightly regulated. In most countries they are legal but regulated.
Probably inspired by the dissenting judgments in a US Supreme Court case called Adams v. Tanner
Adams v. Tanner
Adams v. Tanner, 244 U.S. 590 , is a US Supreme Court case, which held that a Washington state law that prohibited employment agencies was unconstitutional.-Facts:...
, the International Labour Organization's first ever Recommendation was targeted at fee charging agencies. The Unemployment Recommendation, 1919 (No.1), Art. 1 called for each member to,
"take measures to prohibit the establishment of employment agencies which charge fees or which carry on their business for profit. Where such agencies already exist, it is further recommended that they be permitted to operate only under government licenses, and that all practicable measures be taken to abolish such agencies as soon as possible."
The Unemployment Convention, 1919, Art. 2 instead required the alternative of,
"a system of free public employment agencies under the control of a central authority. Committees, which shall include representatives of employers and workers, shall be appointed to advise on matters concerning the carrying on of these agencies."
In 1933 the Fee-Charging Employment Agencies Convention (No.34)
Fee-Charging Employment Agencies Convention, 1933 (shelved)
Fee-Charging Employment Agencies Convention, 1933 is an International Labour Organization Convention.It was established in 1933:Having decided upon the adoption of certain proposals with regard to fee-charging employment agencies,......
formally called for abolition. The exception was if the agencies were licensed and a fee scale was agreed in advance. In 1949 a new revised Convention (No.96)
Fee-Charging Employment Agencies Convention (Revised), 1949
Fee-Charging Employment Agencies Convention , 1949 is an International Labour Organization Convention.It was established in 1949, with the preamble stating:...
was produced. This kept the same scheme, but secured an ‘opt out’ (Art.2) for members that did not wish to sign up. Agencies were an increasingly entrenched part of the labor market. The United States did not sign up to the Conventions. The latest Convention, the Private Employment Agencies Convention, 1997
Private Employment Agencies Convention, 1997
Private Employment Agencies Convention, 1997 is an International Labour Organization Convention.It was established in 1997, with the preamble stating:...
(No.181) takes a much softer stance and calls merely for regulation.
In most countries, agencies are regulated, for instance in the UK under the Employment Agencies Act 1973
Employment Agencies Act 1973
Employment Agencies Act 1973 is a United Kingdom Act of Parliament and part of a wider body of UK agency worker law. It regulates the conduct of employment agencies which recruit and manage temporary and permanent labour. It applies to approximately 17,000 employment agencies operating in the UK...
, or in Germany under the Arbeitnehmerüberlassungsgesetz (Employee Hiring Law of 1972).
Executive recruitment
An executive-search firm is a type of employment agency that specializes in recruiting executive personnel for companies in various industries. This term may apply to job-search-consulting firms who charge job candidates a fee and who specialize in mid-to-upper-level executives. In the United States, some states require job-search-consulting firms to be licensed as employment agencies.Some third-party recruiters work on their own, while others operate through an agency, acting as direct contacts between client companies and the job candidates they recruit. They can specialize in client relationships only (sales or business development), in finding candidates (recruiting or sourcing), or in both areas. Most recruiters tend to specialize in either permanent, full-time, direct-hire positions, or in contract positions, but occasionally in both. In an executive-search assignment, the employee-gaining client company – not the person being hired – pays the search firm its fee.
Executive Agent
An executive agent is a type of agency that represents executives seeking senior executive positions which are often unadvertised. In the United Kingdom, almost all positions up to £ ($) a year are advertised and 50% of vacancies paying £ – £ are advertised. However 5% of positions which pay more than £ (with the exception of the public sector) are advertised and are often in the domain of around executive recruiters in the United Kingdom.. Often such roles are unadvertised to maintain stakeholder confidence and to overcome internal uncertainties. The executive agent would identify the various head-hunters or recruiters who have been given the brief in seeking a candidate. A senior executive would typically pay the agent a fee in a similar fashion to an actor paying a talent agentTalent agent
A talent agent, or booking agent, is a person who finds jobs for actors, authors, film directors, musicians, models, producers, professional athletes, writers and other people in various entertainment businesses. Having an agent is not required, but does help the artist in getting jobs...
. Whilst the Employment Agencies Act 1973 prohibited employment agencies charging, in November 2008, there was a European amendment to (c. 35), in section 9 (inspection), subsection (4), of the act[4].
See also
- Temporary workTemporary workTemporary work or temporary employment refers to a situation where the employee is expected to leave the employer within a certain period of time. Temporary employees are sometimes called "contractual", "seasonal", "interim", "casual staff", "freelance", or "part-time"; or the word may be shortened...
- UK agency worker law
- Talent agentTalent agentA talent agent, or booking agent, is a person who finds jobs for actors, authors, film directors, musicians, models, producers, professional athletes, writers and other people in various entertainment businesses. Having an agent is not required, but does help the artist in getting jobs...
- RecruitmentRecruitmentRecruitment refers to the process of attracting, screening, and selecting qualified people for a job. For some components of the recruitment process, mid- and large-size organizations often retain professional recruiters or outsource some of the process to recruitment agencies.The recruitment...
- Professional employer organizationProfessional employer organizationA professional employer organization is a single source provider of integrated services which enable business owners to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation and other strategic services, such as recruiting, risk/safety...
- American Staffing AssociationAmerican Staffing AssociationThe American Staffing Association is the trade association representing the U.S. staffing industry.ASA is headquartered in Alexandria, Virginia. Founded to promote flexible employment opportunities and ensure the quality of staffing services, ASA has been the voice of the U.S. staffing industry...
- Contingent workforceContingent WorkforceA contingent workforce is a provisional group of workers who work for an organization on a non-permanent basis, also known as freelancers, independent professionals, temporary contract workers, independent contractors or consultants...
- Payrolling
- ANPE, France'sFranceThe French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
national employment agency