"I have the perfect opportunity for you!"
Delete.
If you are in tech, your LinkedIn inbox is a graveyard of generic messages from 22-year-old recruiters who think "Java" and "JavaScript" are the same thing.
Staffing firms are a necessary evil. They control access to about 40% of the job market, especially for contract roles. But let’s be clear: they don't work for you. They work for the client. You are the product.
The Real Numbers
Let’s look at the economics of a Staffing Firm.
| Who Pays? | Who Gets Paid? | The Markup |
|---|---|---|
| Client (Company) | Pays the Agency $150/hr | - |
| Agency | Keeps $50/hr | 33% Margin |
| You (Talent) | Gets $100/hr | - |
1. The "Middleman Tax"
You do the work. They buy the boat.
The Scenario
You are hired as a contractor at a bank. You sit next to a full-time employee doing the same job. You find out the agency is billing the bank $200/hour for you. You are getting paid $80/hour. Where is the other $120 going? "Overhead." "Account Management." "Payroll." The Fix: Negotiate your rate based on the bill rate. Ask them: "What is the bill rate for this role?" They will lie. But ask anyway.
2. The "Resume Spray and Pray"
They don't read your resume. They scan it for keywords.
The Scenario
You are a Python Developer. You get an email: "Urgent need for a Senior Java Architect!" Why? Because the recruiter did a Ctrl+F for "Backend" and blasted 500 people. The Fix: Ignore generic emails. Only reply to recruiters who mention a specific detail from your profile. "I saw you used Flask at Company X" = Real Human.
3. The "Ghosting" Culture
They are your best friend... until they aren't.
The Scenario
Monday: "You are the perfect candidate! The client loves you! When can you interview?" Wednesday: You interview. It goes well. Friday: Silence. Next Monday: Silence. You follow up. The email bounces. The recruiter quit. The Reality: If the client says "No," the recruiter moves on instantly. They don't have time to give you feedback. It’s a sales funnel. You are a dead lead.
4. The "Exclusivity" Trap
"Can you sign this Right to Represent?"
The Scenario
A recruiter asks you to sign a document saying only they can submit you to Client X. Two days later, a different recruiter calls with the same job, but paying $20/hr more. You can't take it. You signed the paper. You played yourself. The Fix: Never sign a Right to Represent unless you have a confirmed interview slot.
5 Steps to Using Recruiters Without Getting Used
- Treat Them Like Brokers: You wouldn't tell a car salesman your "lowest acceptable price." Don't tell a recruiter your "lowest acceptable salary." They will use it as the starting point.
- Ask for the Client Name: If they say "Confidential Financial Client," say "I can't submit without knowing the client. I might have already applied."
- Check Their Tenure: Look at the recruiter's LinkedIn. Have they been there for 3 months? They are desperate. Have they been there for 5 years? They have real relationships.
- Don't Do Free Work: If they ask for a "Code Challenge" before you even speak to the client, say no. It’s a waste of time.
- Keep Your Resume PDF Locked: Send your resume as a PDF, not Word. Unethical recruiters will edit your resume to add fake keywords without telling you.
See our guide on Partnering with Recruiters
Frequently Asked Questions
Why do they ask for the last 4 digits of my SSN?
It’s a unique identifier for the client’s Applicant Tracking System (VMS). It prevents duplicate submissions. It’s usually legit, but never give the full SSN.
Can I negotiate with a staffing agency?
Yes. Their margin is flexible. If they offer $80/hr, they can probably do $90/hr. Every dollar you negotiate comes out of their commission, so they will fight you. Fight back.
Should I work with multiple agencies?
Yes. Loyalty gets you nothing. Work with 3-4 reputable firms. Let them compete for you.
What is the difference between Retained and Contingent?
Retained: The client pays them upfront to find a specific executive. These recruiters are professionals. Contingent: They only get paid if they fill the seat. These are the ones spamming you. Avoid the spammers.