Should you sign up with an advance-fee career-marketing company?
These organizations can promise to connect candidates with high-level
positions that haven't been advertised in return for receiving large fees charged
at the beginning of the process -- from $2,000 to as much as $30,000. The
companies' sales pitches may suggest that candidates will find good jobs in a
few months. Disappointed customers who don't receive the job leads they're
expecting rarely get back the money they paid.
But what really happens after candidates pay their fees? What do the firms
deliver? To what degree are the employees at such organizations involved in the
deception?
A former career counselor offered to give us a rare glimpse into the inside
practices at one such firm. The company has offices in multiple cities. This
professional resigned her job because she feared her reputation would be damaged
if she stayed with the company.
She has a master's degree and more than a dozen years' experience in the
field. She asked that her name and the name of her former employer not be used.
What did you do for this firm?
I was a career consultant. I evaluated clients' education and work
background, personal and professional situation and goals. I then worked with
them individually to develop their written materials, presentation,
communication, and interviewing skills. We also developed personal marketing
plans and worked on such issues as getting a prospective employer's attention
and interest. Other topics included determining their market value and
negotiating employment packages. Each client presented a unique set of
circumstances and problems, which made the work interesting.
How much did this firm's services cost?
To my knowledge, prices varied depending on the length of services a client
could select. I believe this translated to a choice of contracts of between one
and three years' length at a cost of between $5,000 and $10,000.
What made customers unhappy with the services?
Clients were unhappy whenever there was a discrepancy between their
expectations and the services that were outlined. For example, some clients
seemed to expect access to a special network of insiders in companies or to
unadvertised jobs. At first, some comments sounded like nonsense or wishful
thinking, but different customers at different times mentioned similar themes.
As time went on, the comments became more common, and complaints escalated about
the differences between the promises made during the sales process and the
reality of the services that we were able to deliver.
What were the salespeople saying to customers that made them expect this
special access?
Since I was never at any of the sales meetings, I don't know firsthand what
promises were made. I suspect it varied depending on what the salesperson
thought the client wanted or needed to hear. The salespeople seemed to be
consistently inconsistent in exactly what they said, so it was confusing for
clients as well as counselors. In my initial meetings with clients, I would go
through a checklist of activities and information that we would be covering.
Later in the process, clients would sometimes verbalize some previously unstated
expectations and the timing of results they had been promised. By this time, the
salesperson was usually out of the loop, so it seemed like either the counselor
wasn't performing or the client had erroneous perceptions.
When I first asked a salesperson what was said, I was reprimanded and shown a
sample dialogue that the salespeople were supposed to follow, informing clients
about our services. The reality was that whatever occurred in sales meetings
went on behind closed doors. I was told that it wasn't my place to question this
part of the organization if I hoped to keep my job. The best I could do was help
clients as much as possible. The vast majority were unemployed and needed a lot
of help. Most clients' written and verbal communication skills were surprisingly
inadequate.
How did this firm find or attract potential customers?
The sales and counseling personnel were distinctly separate departments, so
for a while I didn't know how customers were acquired. As time went on, I
noticed a couple of small ads in the help-wanted section of the newspaper that
included names of two of the sales people in our company. The ads were
recruiting "Executive Talent" with the salesperson's name and our fax number.
I later learned the firm collected resumes from Internet job-bank sites and
then sent e-mail messages to the resume addresses. Another method was a referral
technique. The company hired someone off-site to make the initial e-mail
contact. They would say something like: "I've seen your resume, and I know
someone who might be interested. You should call 'so and so' (a salesperson at
the given phone number) and mention my name." The off-site person's name was
fictitious, but the company and the salespeople knew how the lead was generated.
Why do unemployed executives seem to be sitting ducks for these types of
sales pitches?
The average working adult is never more vulnerable than when they have lost a
job. For men, work is a primary source of identity. Women base their identity on
relationships, and often their job and workplace is a source of emotional
support and enhanced self-esteem.
Without a job and steady income, the things we take for granted come into
question and jeopardy. Fear can run rampant. Relationships are under magnified
stress during unemployment as spouses and families struggle with lack of control
and can't help in a meaningful way.
Why did you leave?
Upper management was not responsive to my questions or sympathetic to any
dissatisfaction customers expressed.
Eventually, some clients would tell me what exactly was said in the sales
process. This obviously created many tricky customer-service problems
that I could not fix.
I felt top management's choices regarding customer service were not
consistent with professional career practices as well as my values and ethics. I
also feared for my professional reputation in the community, as well as eventual
and possible implication in legal action by clients (although I was not directly
responsible for the complaints and charges). The risks of staying outweighed the
returns.
What percentage of clients found jobs successfully within the time frame
they expected?
It's impossible for me to calculate. I would estimate approximately 30% to
40% of my clients found jobs within a year.
Can a customer get his or her money back? Why or why not?
It seemed to me that the contract was a device used to paralyze clients if
they became dissatisfied. The company would fall back on the response, "you
signed a contract, no refunds." Some clients were successful in getting their
money back if they were incredibly insistent and persistent and didn't give up,
regardless of the company's rhetoric.
The company seemed to provide as many delays, miscommunications and stalling
tactics as it could. I thought their business practices in this regard were
particularly unprofessional, unethical and demeaning. Only when clients
threatened serious legal action would it capitulate. In return, the client would
have to sign a nondisclosure agreement that would effectively hush the matter
and protect the company from future negative publicity.
What red flags should candidates look for when seeking career-counseling
services?
Be suspicious whenever you are asked to pay a large sum in advance for
professional services. Be wary if you're contacted by someone you didn't seek
out. Also be aware of salespeople who use pressure tactics. Question everyone's
motives. Pay attention to your initial impressions. Don't believe everything
they hand you.
I think it's important to do comparison-shopping and become informed
consumers about the types of career firms and services in your area and the
qualifications of their professionals.
You should get three to four personal references and run an Internet search
about a potential service. Don't make impulsive decisions or respond quickly to
pressured sales techniques. Ask lots of questions and write down the answers.
Find out where the company got your name. The Internet is a free-for-all zone,
and unscrupulous people can get access to materials you distribute that way.
Consider a company's overhead and how it manages to keep the lights on. You can
always hire a professional on an hourly basis rather than having to pay a large
fee in advance.
Finally, share your situation and questions with people you know well,
respect and can trust.
Are there ways to find out if a career-services firm is reputable? Is
checking with the Better Business Bureau sufficient?
Word-of-mouth is a worthwhile source. A highly reputable individual or firm
will provide references of satisfied customers. Salespeople at my former
employer rarely asked me to give names of satisfied customers to them for use as
references. The reason was that customers were shown a big book of written
testimonials from clients. These comments were solicited after a client's
initial meeting with a career counselor when their enthusiasm and energy were
high. Most prospective clients never thought to question these testimonials.
Find out what professional local organizations the firm is affiliated with.
As for the Better Business Bureau, my employer managed to get all customer
complaints to the BBB sent to the office in the city where the headquarters was
located. That way, complaints about some offices were never registered with that
city's BBB, and customers checking up on the firm there wouldn't know of them.