In the United States, so-called "reverse recruiting," in which office job seekers pay headhunters to land jobs, is spreading. Analysts say the traditional hiring structure in which corporations paid fees to recruiters has flipped, creating a new market where job seekers shoulder the expense.
According to the Wall Street Journal (WSJ) on the 8th local time, the labor market's deterioration is fueling this shift. The U.S. Bureau of Labor Statistics said that as of the end of last year, for the first time since the COVID-19 pandemic, the number of unemployed exceeded the number of job openings. The average job search period also approached about six months. As restructuring continued at large tech corporations and logistics corporations, thousands of office workers poured into the job market at once.
In this environment, some job seekers are choosing recruitment outsourcing services to survive the competition. Job seeker Daniel Bejarano, 36, found a job through the reverse recruiting platform "Refer." Refer's artificial intelligence (AI) agent connected Bejarano with the executives of the volunteer management corporations "Golden," and Bejarano was hired after several interviews. As soon as his first month's salary was deposited, he paid 20% of his pay as a fee. Bejarano told the WSJ, "The biggest advantage was that I didn't get buried among countless applicants."
Reverse recruiting models take various forms. Some firms collect a percentage of pay as a fee once hiring is finalized. Others charge a flat fee to submit resumes on behalf of job seekers or contact corporations' HR managers directly. It goes beyond simple career counseling or resume editing to handle the entire pre-application process.
Andre Hamra, Refer's chief executive officer (CEO), said, "If you don't pay, you become the product," adding, "Making job seekers the customers is what motivates the service." The company is currently offering services primarily to job seekers from elite universities and plans to expand across the tech sector. According to Refer, the daily average number of job seeker introductions has risen to more than 20, and the number of client corporations is about 2,000.
But skepticism is widespread. Traditional headhunters question the ethics of charging fees to job seekers. Ken Jordan, co-founder of headhunting firm Purple Gold Partners, said, "Vulnerable job seekers may be exposed to excessive marketing," and advised, "Job seekers should make sure who controls their login information and how applications are actually submitted."
Effectiveness is also in dispute. Sean Cole, who was laid off from Netflix, used reverse recruiting services via the freelance platform Fiverr. Over two weeks, he paid $400 (about 580,000 won) to apply to about 50 places, but none led to an interview. Some even connected him to senior-level postings, but they did not translate into actual results.
Premium services have also emerged. "Reverse Recruiting Agency" charges $1,500 a month (about 2.18 million won) for tailored resume writing, mass applications, and outreach to current employees. The company said 20 out of 44 clients were hired, but concerns are rising over the high expense and how personal data is used.
Experts say the spread of reverse recruiting illustrates the structural instability of the white-collar labor market. Some also argue that the burden of recruiting expense has shifted from corporations to job seekers. Others note it remains unclear whether reverse recruiting will be a temporary trend or take root as a new hiring method.