A Student's Guide to Interviewing
With Third-Party Recruiters
As you conduct your job search you will find that some employers hire third-party organizations to
assist them in identifying and hiring college students. An employer can hire a third-party organization to
do on-campus recruiting, represent the company at a job fair, screen job candidates who apply through
an Internet web site, or other hiring activities. The National Association of Colleges and Employers
(NACE) defines third-party recruiters as "agencies, organizations, or individuals recruiting candidates
for temporary, part-time, or full-time employment opportunities other than for their own needs."
Categories of third-party recruiters include:

Employment Agencies: Employment agencies list positions for a number of organizations and
receive payment when a referred candidate is hired. The fee for listing a position is paid either by
the firm listing the opening or by the candidate who is hired. If the job listing does not include
the phrase "fee paid," be sure to ask who pays the fee before signing any papers.

Search Firms: A search firm contracts with employers to find and screen qualified persons to
fill specific positions. The fee is paid by the employer. Search firm representatives will identify
the employer they represent.

Contract Recruiters: Employers hire contract recruiters to represent them in the recruiting and
employment function.

Resume Referral Firms: A resume referral firm collects information on job seekers and
forwards it to prospective employers. Data can be contained in resumes or on data forms (either
paper or electronic). The employer, job seeker, or both may pay fees. You must give the firm
written permission to pass your resume to employers. Your permission should include a
statement that expressly states to whom and for what purpose the information can be used.

Temporary Agencies or Staffing Services: Temporary agencies or staffing services are
employers, not third-party recruiters, and will be expected to comply with the professional
conduct principles set forth for employer professionals. These are organizations that contract to
provide individuals qualified to perform specific tasks or complete specific projects for a client
organization. Individuals perform work at the client organization, but are employed and paid by
the agency.

Outsourcing Contractors or Leasing Agencies: Outsourcing contractors or leasing agencies
are employers, not third-party recruiters, and will be expected to comply with the professional
conduct principles set forth for employer professionals. These are organizations that contract
with client organizations to provide a specific functional area that the organization no longer
desires to perform, such as accounting, technology services, human resources, cafeteria services,
etc. Individuals hired by the outsourcing or leasing firm are paid and supervised by the firm,
even though they work on the client organization's premises.
In most cases temporary agencies, staffing services, outsourcing contractors, or leasing firms will be
treated as employers. However, should these firms actually recruit individuals to be employees of
another organization, then the third-party professional conduct principles shall apply.
Third-party recruiting organizations charge for services using one of the following fee structures:
1. Applicant paid fee
The applicant pays the third-party recruiter a flat fee for services rendered or a fee based
upon the applicant's starting salary once the applicant is placed with an employer.
This handout is provided by the Academic Advising and Career Center at California State University, Sacramento and is intended for personal non-commercial use. 2013
Academic Advising and Career Center • California State University, Sacramento • (916) 278-6231 • www.csus.edu/careercenter • 2013
Third Party Recruiters
Page Two
2. Employer paid fee
Retainer: The employer pays a flat fee to the third-party recruiter for services performed
in the recruiting of individuals to work for the employer.
Contingency fee: The employer pays to the third-party recruiter a percentage of the
applicant's starting salary once the applicant is hired by the employer.
Fee for service: The employer pays a fee for specific services, e.g. job postings, access to
resumes, booth space at a job fair, etc.
Questions to Ask
A third-party recruiter may be helpful to you in your job search, but be a wise consumer. Read all
materials carefully. Ask questions. Ask your career services office staff for information. Ask a lawyer to
read any contracts you are asked to sign. Here are some general questions you may want to ask:
1. How many job openings are there for someone in my field? If you have the opportunity,
inquire about the positions being filled or the number of openings related to your field. These are
important questions because, in some instances, recruiters may not really have the type or
number of openings they advertise. They may be more interested in adding your name to their
candidate pool as a means of attracting more employers or clients to their services. Or they may
be collecting resumes from students for potential job opportunities. (Name of your
institution/career center) does not allow third-party recruiters to interview students unless they
are trying to fill actual job openings.
2. How is this information being used? A third-party recruiter is allowed legally to share your
resume with the contract employer for positions that you are actually seeking. The recruiter must
tell you, in clear terms, that your materials and information will not be shared outside the
organization or used for any purpose other than with the company they represent at the time they
interview you. The third-party recruiter cannot sell your information to anyone else. You may
choose to authorize the recruiter to share your data elsewhere, but your authorization should be
given to the recruiter in writing.
3. Are candidates treated equally and fairly? If you are qualified for the job opportunity, the
third-party recruiter must pass your information to employers without regard to your race, color,
national origin, religion, age, gender, sexual orientation, or disability.
4. Who pays the fee? Before you agree to anything or sign a contract, ask the recruiter who will
pay the fee.
For assistance with these questions or other related topics, contact the Academic Advising and Career
Center, Sacramento State, Lassen Hall 1013, (916) 278-6231.
Copyright © 1999 National Association of Colleges and Employers, Reviewed May 2006.
Students and alumni are responsible for all necessary precautions when submitting a resume, interviewing and/or accepting
positions with third part recruiters. It is the user's responsibility to check the accuracy and reliability of information provided as
well as the credentials and integrity of the organization. In addition, users are encouraged to check references provided by the
organizations. 2013
This handout is provided by the Academic Advising and Career Center at California State University, Sacramento and is intended for personal non-commercial use. 2013
Academic Advising and Career Center • California State University, Sacramento • (916) 278-6231 • www.csus.edu/careercenter • 2013