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HRM CA | 31 Aug 2016, 03:08 AM Agree 0
Research suggests professional recruiting firms are contributing to rising earnings inequality
  • Wayne Forster | 01 Sep 2016, 08:59 AM Agree 0
    Not that I'm trying to defend headhunters, but this seems a bit of a stretch. Like the old adage in statistical analysis goes "Correlation does not imply causation".
  • Ted McNicol | 01 Sep 2016, 06:19 PM Agree 0
    My first reaction to the idea that headhunters are driving up wages for skilled workers is "so what?". In the 90s there was a push by companies towards the "new deal" where employees were laid off and told to offer their skills in the market. Many people's lives were disrupted by this and unskilled workers struggle today to find steady, long term employment.

    Headhunters or rather professional recruiters don't drive up wages unless there's a demand for the skill and a company willing to pay for it. In the case of executives, there have been far too many studies that have found the link between pay and performance (using skills?) is lacking, so recruiters certainly aren't to blame for that.

    If we are going to increase taxes to benefit lower-income (presumably unskilled) workers let's ensure they are spent to upskill everyone. We are competing globally and many countries don't offer even the meagre social programs we do today.

    As far as a higher top rate of tax, let's first ensure that we eliminate individual and business loopholes so a minimum tax rate is paid by all. High-paid individuals tend to also consume and spend at a higher rate, stimulating the economy (creating jobs) whereas corporations are driven by shareholder returns to minimize investments and, like Apple, to find havens where they can legally avoid paying taxes.

    This is a very complex problem and singling out recruiters for blame seems to be unjustified, even if there is some correlation. But the wage gap certainly is an issue and I applaud the writer for seeking a solution.
  • John Brandwagt | 03 Sep 2016, 02:54 PM Agree 0
    The simple fact the recruiters are expected to find the top 10% of course those prospects earn the higher incomes. Candidates dictate the income, what they need to consider making a move. You get what you pay for.
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