Recruitment is a £2.4 billion industry responsible for 1.2 million contract workers out on assignment in any given week. The number of staff engaged on a temporary or contract basis has been increasing across the globe for the last 30 years.
The need to have a flexible workforce has been one of the key drivers cited for why companies are reducing permanent staffing levels and utilising contract labour in times of peak need or for particular key skills on a short-term project basis.
Contract workers present employers with different sets of employee challenges, so it’s important that you are up to speed with temporary employee legislation and that the investment, both cost and time, made to recruit contractors is effective.
Working with the right recruitment agency can help and below Kevin Harris, senior contracts consultant offers some useful advice when making your decision.
Always ask for copies of the agency’s insurances. Reputable agencies should have professional indemnity and public and employers liability insurances. It is important to check that these cover ALL the agency’s contractors. Without them you will have no recourse to damages if things go wrong.
Request a copy of the contract the agency sends to contractors. This details the terms on which the contractor supplies their service to you. It’s vital that it corresponds to what you are looking for, e.g. protection of confidentiality, right of substitution, level of control etc. You should review this contract to ensure that a contractor is unlikely to be viewed as your employee. Consider drafting a master agreement with all your preferred agencies so that they work on the same basis criteria.
Ensure the agency is a member of The Recruitment & Employment Confederation (REC), it’s the industry’s professional body and ensures that agencies operate in a clear and compliant manner regarding fees, handling candidates, grievance etc.
Consider agencies with ISO certification as it will ensure that procedures remain within the business, so even if consultants leave, tacit knowledge and levels of service are maintained.
Don’t get fixated on agency price. Margins are typically only 8% of the total cost and it is easy to think the remaining 92% of the cost is static - it’s not. A good agency will be able to negotiate a lower overall cost even if its margin is higher. So it may well be better to pay an agency an extra 1% if they can save you 3% of the total cost.
Don’t appoint too many agencies - you’ll get a diluted service from all of them as they will feel there’s too much competition. It’s much better to choose two or three strong agencies rather than four or five. Keep in regular contact with appointed agencies and update them on your vacancies.
Good payment terms are crucial - a maximum of 30 days is expected; any longer and you’ll be paying extra for extended credit.
