Working with a recruiter? Know this before you say yes.

How the process usually goes

First, know who you're talking to. An agency recruiter works for a staffing or search firm and is paid by the hiring company when they place someone. An in-house recruiter works for the hiring company itself. The steps below are the agency path; with an in-house recruiter, the representation step drops out.

1. A first call. Usually 15 to 30 minutes on the role, the pay, your background and your timing.
2. Permission to submit you. The recruiter asks for your OK to put you forward, often in writing. This is the "right to represent" (below).
3. Submission. The recruiter sends your resume to the hiring company, often called "the client."
4. Interviews. With the hiring company. A good recruiter preps you before each round and passes along feedback after.
5. Offer and paperwork. The offer often comes through the recruiter, who can also negotiate for you. Then you sign an offer letter, or for contract roles, an agreement with the agency.

Right to represent and exclusivity

A right to represent is your written OK for one agency to submit you to one specific company, for one specific role, usually for a set period of time. Many recruiters ask for it before they submit you, and that's a normal request.

Here's why it matters. If two agencies submit you for the same role, the hiring company may set your application aside rather than sort out which agency gets the fee. That's called a duplicate submission, and it can cost you a role you were right for.

Basic tools

• Before you agree, ask which company and which role. You're free to wait until you know both.
• Agree per role, not a blanket OK to submit you anywhere.
• Check how long the right lasts. A few weeks to a few months is common; open-ended is not.
• Say no to a second agency for a role someone has already submitted you to.
• Keep a simple log: date, company, role, agency, recruiter. Your neverapply tracking sheet already has most of it.

Contract and pay terms

The same number can mean different take-home pay depending on the arrangement. Ask which one a role is before you compare offers.

W-2

You're an employee, of the agency or the company. Taxes are withheld, and you may be eligible for benefits.

1099 (independent contractor)

You're paid without withholding and handle your own taxes, including self-employment tax. Benefits are usually not included, so a 1099 rate needs to be higher than a W-2 rate to come out even.

Corp-to-corp

Your own business entity bills the agency. Common for consultants who already run a company.

Contract-to-hire

You start as a contractor with the option to convert to a permanent employee. Ask when conversion is considered, at what salary, and whether the company owes the agency a fee to convert you.

Clauses worth reading closely

• Non-compete and non-solicit: limits on where you can work or who you can contact after the role ends.
• Conversion or buyout fees: what it costs the company to hire you directly, which can affect whether they do.
• Notice and termination: how either side can end the contract, and with how much notice.
• Intellectual property: who owns what you create, including anything outside work hours.
• Arbitration: whether disputes go to private arbitration instead of court.
• Benefits and start dates: what you're eligible for, and when it begins.

Questions worth asking

• Who is the hiring company, or when can you tell me?
• Is this direct hire, contract, or contract-to-hire?
• What's the budgeted range, and is it salary or hourly? W-2 or 1099?
• How long has the role been open, and why is it open?
• How many interview rounds, and who's in them?
• What happens after you submit me, and when should I expect to hear back?
• Is your agency the only one working this role?

Red flags

• A fee from you. Agency recruiters are paid by the hiring company. Anyone asking you to pay to be placed is a reason to walk away.
• Blanket permission. A request to submit you anywhere, without naming the company or the role.
• Sensitive details too early. Your Social Security number, bank details or date of birth before there's an offer. Background checks come after an offer, with your written consent.
• Pressure to sign today. A real offer survives a day or two for you to read it.
• A contract that doesn't match the conversation. Rate, role, location or dates that differ from what you were told.

Have a lawyer review the contract

Before you sign an employment contract, a contractor agreement, or anything with a non-compete, have an employment lawyer read it. Many review a single agreement for a flat fee, and your state bar association runs a lawyer referral service if you don't know one. A short review now costs far less than a clause you're held to for years.