Is it common to recommend candidates that I interviewed or received their CVs to other recruiters and get paid for it. What about the candidate's confidentiality, should I ask every candidate before I refer his/her CV?
I think it's ok to share credentials and if you receive an interest to then get back with the candidate to get their approval before sharing their resume. As recruiters we must remember we have a responsiblity to our candidates to handle their information professionally. Just my thoughts....
You'll probably get a variety of responses to this question, but only because there are no formally established standards. My perspective is that it is rude and presumptive to share a resume without specific permission of the candidate, and doing so perpetuates the image of the Ugly Recruiter. It is such a small courtesy to ask the preference of the candidate, and sends a clear message that you acknowledge the candidate is in control of his or her own job search. It also takes you out of the spam loop by ensuring that you're making meaningful connections in your network.
But how passive candidates sourcing will work if we need to make sure all candidates approve their referral. Sometimes I am paid to provide the contact information for 50 candidates in a specific industry, I can’t call everyone to make sure that they are willing to share their information or not. I don’t see any harm if the other recruiter contacted them to offer them a job position, which might be their dream job.
It is not ethical to pass along someone's credentials without their permission. In the world of VMOs, or MSPs, this action often results in double submissions. Many people do this with out the candidates knowledge, while they are working legitimately with someone, speaking to them about positions and this could potentially prevent them from getting an opprtunity the fair way.
Ok, so are you talking about passing around a resume, or sharing someone's name and email address with a recruiter you know and trust, or making lists of candidate information available to recruiters in the public domain? You can see how each of these scenarios has its own set of landmines relating to privacy and consent to disclosure.
The most sensitive issue for the passive candidate may be related to this: the implication that they are in active job search mode when they did not consent to be there. At best, this can be an irritant to the candidate; at worst, it can cause professional embarrasment leading to loss of personal credibility or even their job (and yes, I saw this happen once along the way -- and no, it wasn't pretty for the candidate or the recruiter who caused it).
I recommend you go the extra mile to build and keep a stellar reputation as a recruiter. Share information intelligently with others, and assume as little as possible about the desires and motivations of everyone in the loop (this means candidates, hiring managers, and other recruiters). When in doubt, ask a question; it won't hurt you, and may lead to more business than you know what to do with.
I love that you're asking these questions, Rami -- it shows that your "internal compass" is pointing in a good direction.