| An Interesting Look At The History of The | | | | contractors in the past. However, this was changed by |
| Recruitment Industry | | | | the 1986 amendment by preventing employers from |
| Recruiting began with the military and dates all the way | | | | appealing reclassification if the employee had been |
| back to ancient Egypt, Greece and Rome. The birth of | | | | placed by a third party agency. |
| the modern recruiting industry, however, did not take | | | | In response, corporations simply began doing what the |
| place until the 1940's as a result of WWII. Employment | | | | IRS had accused them of failing to accomplish in the |
| agencies began to advertise for workers who were | | | | first place. Large companies began reclassifying all |
| not obligated to military service in an effort to fill the | | | | their employees, shifting their status from 10-99s to |
| void in the workplace left by those who were called to | | | | W-2s. As web and technology based businesses |
| duty. The end of the war led to an influx of workers | | | | began to blossom with the Internet boom in the 1990's, |
| returning from the army, many with new skills that | | | | the path had been cleared for recruiters to place |
| could be applied to the blossoming technology field. | | | | programmers, system analysts, designers, drafters, |
| Headhunting companies became popular as a | | | | computer programmers and engineers as well as |
| response to the growing workforce. Headhunting | | | | senior and executive level positions for the hundred of |
| agencies worked in service of those seeking | | | | new and thriving companies. |
| employment until the strong economy of the 1970s led | | | | In the 90's, headhunting had begun to spring into new |
| to a shift from working for the employee to working | | | | forms and took on a variety of trendy names and |
| for the employer. Enjoying a period of relative | | | | specialized strategies such as "synthesized" recruiting, |
| prosperity and growth, large corporations began | | | | "broadband" staffing, "converged" recruitment |
| outsourcing their hiring efforts to recruiting companies. | | | | strategies as well as something that became known |
| Because of IRS employment taxes, recruiters only | | | | as MARS, or "Multi-disciplinary Advanced Rapid |
| made placements for full time, executive positions. | | | | Staffing." At the peak of the Internet boom, companies |
| The headhunting industry continued to operate in this | | | | were desperate for staffing solutions that would help |
| way until labor laws began to change and the line | | | | meet the demands of the swelling economy and the |
| between employee and independent contractors was | | | | seemingly endless supply of wealth. |
| blurred. In 1986, Congress eliminated safe harbor for | | | | Unfortunately, the economic downturn has been hard |
| certain technical workers, thus affecting the way | | | | on the recruiting industry. Not only are unemployment |
| engineers, drafters, system analysts, designers, | | | | rates high, but those companies who are hiring usually |
| computer programmers and other professionals in | | | | make an effort to save money by doing their own |
| similar lines of work were classified. The Revenue Act | | | | staffing and human resource management. One can |
| of 1978 had previously permitted employers to appeal | | | | predict, however, that when the economy begins to |
| reclassification of an employee if the industry had | | | | get back on its feet, the recruiting business will be in |
| categorized certain types of workers as independent | | | | high demand once again. |