How Much Does Old Employeer W-2S Cost From Irs From Ancient Greece to WWII – A Look at the History of the Recruiting Industry

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From Ancient Greece to WWII – A Look at the History of the Recruiting Industry

An interesting look at the history of the recruitment industry

Conscription began with the military and dates back to ancient Egypt, Greece and Rome. The birth of the modern recruiting industry, however, did not occur until the 1940s as a result of World War II. Employment agencies began to advertise for workers who were not required to serve in the military in an effort to fill the job gap left by those who were called to service. The end of the war brought an influx of workers returning from the military, many with new skills that could be applied to the burgeoning field of technology. Headhunting firms became popular in response to the growing workforce. Headhunting agencies worked to serve job seekers until the strong economy of the 1970s led to a shift from working for the employee to working for the employer. Enjoying a period of relative prosperity and growth, large corporations began to outsource their recruiting efforts to recruiting companies. Due to IRS employment taxes, recruiters only placed for full-time executive positions.

The headhunting industry continued to operate this way until labor laws began to change and the line between employees and independent contractors blurred. In 1986, Congress eliminated the safe harbor for certain technical workers, thereby affecting the way engineers, draftsmen, systems analysts, designers, computer programmers, and other professionals in similar lines of work are classified. The Revenue Act of 1978 had previously allowed employers to appeal an employee’s reclassification if the industry had classified certain types of workers as independent contractors in the past. However, this was changed with the 1986 amendment by preventing employers from appealing the reclassification if the employee had been placed by a third-party agency.

In response, corporations simply started doing what the IRS had accused them of failing to do in the first place. Large companies began reclassifying all of their employees, changing their status from 10-99 to W-2. As web and technology-based companies began to flourish with the rise of the Internet in the 1990s, the way had been opened for recruiters to place programmers, systems analysts, designers, draftsmen , computer programmers and engineers, as well as senior and executive level positions during the hundred. of new and prosperous companies.

By the 1990s, headhunting had begun to take on new forms and adopted a variety of buzzwords and specialized strategies such as “synthesized” recruiting, “broadband” staffing, recruiting strategies “convergent” as well as something that came to be known as MARS, or “Multidisciplinary Advanced Rapid Manpower”. At the height of the Internet boom, companies were desperate for staffing solutions to help meet the demands of a growing economy and a seemingly endless supply of wealth.

Unfortunately, the economic crisis has been tough on the recruitment industry. Not only are unemployment rates high, but companies that are hiring often make an effort to save money by doing their own staffing and HR management. It can be predicted, however, that when the economy begins to recover, the recruitment business will again be in high demand.

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