Pass the baksheesh

Wed, 24 Jan 2007 | Updated: Fri, 21 Nov 2008 10:59 am

Having just returned from a trip to the Middle East, where paying baksheesh is the norm, I wondered how this translates into the UK recruitment industry. (Editor's note: the term 'baksheesh' is defined by online service Answers.com as 'a gratuity, tip or bribe paid to expedite service'.) While we'd all like to believe that we receive recommendations based purely on levels of service, in the real world people have bills to pay and will take advantage of earning extra money just for passing on a lead or a name.

We've been asking clients and candidates their views on the matter: do they pay for referrals for business or for new candidates? If so how much or in what format? Without giving away any names, we found that recruiters in certain sectors seem to offer a referral reward more readily than others. For example, one construction recruiter admitted it had secured a £500,000 piece of business on the golf course. A regional manager for one of the national agencies told us she'd treated a particular client to a holiday in Florida. An IT/telco recruiter actually handed over £5,000 in cash to help smooth the signing of a major contract. A number of the job boards also offer cash incentives to help promote their services.

Currently most sectors are experiencing a severe skills shortage, rather than a lack of vacancies. The main issue is about having access to high-calibre candidates.

Here's what we heard: another IT recruiter has just arranged a weekend ski trip for the people who have referred the most lucrative new candidates in the last six months. Many high street agencies offer smaller incentives and rewards, such as shopping vouchers, for referring new candidates to the agency's books, and numerous accountancy Recruiters offer gifts, such as cases of wine, for access to candidates who are successfully placed. One executive search firm said it paid £10 for every new name added to their database, regardless of placement, plus £500 if the person was assigned within the next 12 months.

Some may take the moral high ground, refusing to pay for recommendations, but in the face of the realities, it seems more productive to show some tangible, fiscal method of thanks and appreciation. And why not!

Vic Chuntz
CEO
Aston Taylor