The recruitment industry exists to provide employers with access to a 'pool' of candidates fitting a certain specification or to assist in identifying and securing individuals with a particular skills or industry profile. Fees are paid by the client organisation and typically are calculated as a percentage of the candidate's gross remuneration package.
The recruitment industry is effectively 'tiered' into three groups of businesses. These are high-street employment agencies, search & selection firms and top-level search firms.
The recruitment industry is of highly variable quality in terms of both ethical and capability considerations. Problems relating to employment agencies typically arise when the parties fail to specify clearly the arrangement regarding payment for services rendered or how fees are deemed to have been calculated. It is important to review all agency terms and conditions of business submitted to your company. You should also insist that any exceptions or contingencies be spelled out in writing. Request reimbursement of the fee or a free replacement if the employee only works for you for a short time and make sure that any guarantee is in writing for your protection.
The Employment Agencies Act 1973 requires agencies to forward Terms and Conditions to the prospective employer prior to introducing candidates to it. Agencies are also governed by the Conduct of Employment Agencies and Employment Businesses Regulations 2003. To protect your company from these and other problems, the following guidelines are recommended whenever engaging the services of a recruitment firm: