An employment agency is an organization which matches employers to employees. In

developed countries A developed country, or advanced country, is a sovereign state that has a high quality of life, developed economy, and advanced technological infrastructure relative to other less industrialized nations. Most commonly, the criteria for eval ...

, there are multiple private businesses which act as employment agencies and a publicly funded employment agency.

Public employment agencies

One of the oldest references to a public employment agency was in 1650, when Henry Robinson 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, which was short-lived. The idea to create public employment agencies as a way to fight unemployment was eventually adopted in developed countries by the beginning of the twentieth century. In the United Kingdom, the first labour exchange was established by social reformer and employment campaigner

Alsager Hay Hill Alsager Hay Hill (1 October 1839 – 2 August 1906) was an English social reformer active during the late 19th century, influential on poor law reform and employment issues. He founded one of the first labour exchanges and, in 1871, a newspape ...

in London in 1871. This was later augmented by officially sanctioned exchanges created by the

Labour Bureau (London) Act 1902 The Labour Bureaux (London) Act 1902 ( 2 Edw. 7. c. 13) was an Act of Parliament of the Parliament of the United Kingdom, given the royal assent on 22 July 1902 and repealed in 1973. It authorised the establishment of labour bureaux by boroug ...

, which subsequently went nationwide, a movement prompted by the Liberal government through the

Labour Exchanges Act 1909 The Labour Exchanges Act 1909 ( 9 Edw. 7. c. 7) was an act of Parliament which saw the state-funded creation of labour exchanges, also known as employment exchanges. The stated purpose was to help the unemployed find employment. Prior to th ...

. The present public provider of job search help is called

Jobcentre Plus Jobcentre Plus (; ) is a brand used by the Department for Work and Pensions in the United Kingdom. From 2002 to 2011, Jobcentre Plus was an executive agency which reported directly to the Minister of State for Employment. It was formed by th ...

. In the United States, a federal programme of employment services was rolled out in the

New Deal The New Deal was a series of wide-reaching economic, social, and political reforms enacted by President Franklin D. Roosevelt in the United States between 1933 and 1938, in response to the Great Depression in the United States, Great Depressi ...

. The initial legislation was called the Wagner-Peyser Act of 1933 and more recently job services happen through one-stop centers established by the

Workforce Investment Act The Workforce Investment Act of 1998 (WIA, ) was a United States federal law that was repealed and replaced by the 2014 Workforce Innovation and Opportunity Act. Purpose The Workforce Investment Act is a federal act that "provides workforce inves ...

of 1998. In Australia, the first public employment service was set up in 1946, called the

Commonwealth Employment Service The Commonwealth Employment Service (CES) was an Australian Government employment agency that was established in 1946 with the introduction of the ''Re-establishment and Employment Act 1945'' under the Curtin ALP government. It was designed to i ...

Private employment agency

The first known private employment agency Robinson, Gabbitas & Thring, was founded in 1873 by John Gabbitas who recruited schoolmasters for public schools in England. In the United States, the first private employment agency was opened by Fred Winslow who started an 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 Felton Katharine Conway "Kitty" Felton (July 7, 1873 – August 8, 1940) was the head of Associated Charities in San Francisco at the turn of the 20th century. Felton was born in Oakland, California, on July 7, 1873, the daughter of a prominent San Fra ...

as a response to the problems brought on by the

1906 San Francisco earthquake At 05:12 AM Pacific Time Zone, Pacific Standard Time on Wednesday, April 18, 1906, the coast of Northern California was struck by a major earthquake with an estimated Moment magnitude scale, moment magnitude of 7.9 and a maximum Mercalli inte ...

and fire.

Status from the International Labour Organization

The

International Labour Organization The International Labour Organization (ILO) is a United Nations agency whose mandate is to advance social and economic justice by setting international labour standards. Founded in October 1919 under the League of Nations, it is one of the firs ...

'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) 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 Private Employment Agencies Convention, 1997 is an International Labour Organization The International Labour Organization (ILO) is a United Nations agency whose mandate is to advance social and economic justice by setting international labo ...

(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 The Employment Agencies Act 1973 (c. 35) 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 ...

, or in Germany under the ''Arbeitnehmerüberlassungsgesetz'' (Employee Hiring Law of 1972).

Executive recruitment

An executive-search firm 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 more than one. 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, only 5% of positions which pay more than £ (with the exception of the public sector) are advertised and are often in the domain of around 4,000 executive recruiters in the United Kingdom. Often such roles are unadvertised to maintain stakeholder confidence and to overcome internal uncertainties.

Staffing types

Contract - Contract staffing refers to a type of employment arrangement where an individual is hired by a company for a predetermined period to work on a specific project or task. Contracts can vary in duration and may be short-term or long-term. This arrangement often benefits employers by providing flexibility in staffing for temporary needs. In contract staffing, individuals, often referred to as "contractors" or "consultants," bring specialized skills and expertise to tackle short-term projects or address specific organizational needs. This staffing model is prevalent in industries like IT and engineering, where demand for specialized skills can fluctuate. Contract employees may be called independent contractors, 1099 employees, or freelancers, and are considered self-employed workers who operate on a contract basis for clients Contract-to-hire - Contract-to-hire, also known as temp-to-perm, is a staffing model where an employee initially works for a company as a contractor or temporary worker with the possibility of being hired as a permanent employee after a trial period. This arrangement allows employers to assess an employee's skills and fit for a role before making a long-term commitment. Contract-to-hire arrangements, sometimes termed "try before you buy", allow companies to evaluate a candidate's cultural fit and performance before committing to a permanent hire. This approach can mitigate hiring risks and ensure a better match between the candidate and the organization's long-term goals. Temporary - Temporary staffing involves hiring individuals for short-term positions to meet immediate staffing needs. Temporary workers are typically employed by staffing agencies and may work on assignments ranging from a few days to several months. This provides flexibility for employers to manage fluctuations in workload. Part-time - Part-time staffing refers to employment where individuals work fewer hours than full-time employees. Part-time employees often have a set schedule but work fewer hours per week or month. This arrangement is commonly used in industries with variable workloads or to accommodate employees seeking work-life balance. Full-time - Full-time staffing is the traditional employment model where individuals work a standard 40-hour workweek. Full-time employees typically receive benefits such as health insurance and paid time off. This type of staffing is common in many industries and offers job stability. This model is standard across many industries, fostering loyalty and long-term commitment. GAP staffing (graphic arts professional) - GAP staffing, specific to graphic arts professionals, may involve hiring individuals with specialized skills in graphic design, illustration, or related fields on a temporary or contract basis to fill gaps in creative teams. This staffing type is essential for companies with fluctuating design and creative needs. This term is not widely used but is niche within the recruiting space.

Terms of business

Many agencies offer partial refunds on their fees if appointed staff do not remain for long in employment, if invoices have been paid within seven days of issue. This allows the agency and employer to share risk. In 2006, the

Court of Appeal for England and Wales The Court of Appeal (formally "His Majesty's Court of Appeal in England", commonly cited as "CA", "EWCA" or "CoA") is the highest court within the Senior Courts of England and Wales, and second in the legal system of England and Wales only to ...

ruled that the loss of such a refund in circumstances where invoices had not promptly been paid did not amount to a " penalty charge" under the

English law English law is the common law list of national legal systems, legal system of England and Wales, comprising mainly English criminal law, criminal law and Civil law (common law), civil law, each branch having its own Courts of England and Wales, ...

which then applied, because the legal issues regarding penalty clauses only arose in circumstances where a

breach of contract Breach of contract is a legal cause of action and a type of civil wrong, in which a binding agreement or bargained-for exchange is not honored by one or more of the parties to the contract by non-performance or interference with the other part ...

was potentially being penalised. The issues in the case of ''Euro London Appointments Ltd. v Claessens International Ltd.'' did not amount to a breach of contract. This ruling enabled UK recruitment agencies to maintain this practice within their

terms and conditions A contractual term is "any provision forming part of a contract". Each term gives rise to a contractual obligation, the breach of which may give rise to litigation. Not all terms are stated expressly and some terms carry less legal gravity as ...

.The Keith Jones Partnership (2006)
Euro London Appointments Ltd -v- Claessens International Ltd [2006
/nowiki> EWCA Civ385">/nowiki>2006">Euro London Appointments Ltd -v- Claessens International Ltd [2006
/nowiki> EWCA Civ385 archived 15 January 2014, accessed 10 May 2024