Blatant gift inducement practice 'needs to stop'_2
17 September 2012
Some recruiters are saying "No thanks" to gifts being offered by composite companies to either individuals or entire firms for steering business their way.
Trips to New York, England sports wea
Trips to New York, England sports wea
Some recruiters are saying "No thanks" to gifts being offered by composite companies to either individuals or entire firms for steering business their way.
Trips to New York, England sports wear and cash are among the goodies dangled by some firms that provide tax and payroll services for contractors, according to recruitment industry executives.
"It's so blatant," said Paul Clark, managing director of Penta Consulting. "We must have a dozen England shirts come through the door every week. The worst I've heard is a New York trip for the weekend. You have to stop it."
"Accepting inducements [from the companies] is strongly discouraged and seriously dealt with," said Isaac George, MD of Xansa Recruitment. Xansa either routes contractors' requests through the company's 'Best Practice' team or directs them to a list of such companies that have been accepted as affiliate members of the Association of Technology Staffing Companies (ATSCo).
George told Recruiter that the issue really centres on providing the best contractor care because it is ultimately contractors who are affected by referrals. "Sometimes contractors end up paying much more for the services or do not receive the appropriate level of advice… or [the companies] may not be compliant with regulations and legislation."
Paying 'disproportionate commissions' for contractor referrals can lead to ATSCo rejecting a managed service company's (MSC's) application for membership, said chief executive Ann Swain. MSCs applying for affiliate membership must answer questions about the type of incentives they offer recruiters for referrals and if their incentives are offered as part of an HMRC-approved 'Taxed Award' scheme.
The REC does not admit composite companies to corporate membership. However, the practice of offering inducements would be "broadly viewed as unethical", external affairs manager Anne Fairweather said.
MSC Charterhouse Group International's Graihagh Mylchreest, group finance director, commented: "We deplore the use of cash incentives to recruitment consultants and any other practice that is not agreed openly with the directors of our business partners."
Trips to New York, England sports wear and cash are among the goodies dangled by some firms that provide tax and payroll services for contractors, according to recruitment industry executives.
"It's so blatant," said Paul Clark, managing director of Penta Consulting. "We must have a dozen England shirts come through the door every week. The worst I've heard is a New York trip for the weekend. You have to stop it."
"Accepting inducements [from the companies] is strongly discouraged and seriously dealt with," said Isaac George, MD of Xansa Recruitment. Xansa either routes contractors' requests through the company's 'Best Practice' team or directs them to a list of such companies that have been accepted as affiliate members of the Association of Technology Staffing Companies (ATSCo).
George told Recruiter that the issue really centres on providing the best contractor care because it is ultimately contractors who are affected by referrals. "Sometimes contractors end up paying much more for the services or do not receive the appropriate level of advice… or [the companies] may not be compliant with regulations and legislation."
Paying 'disproportionate commissions' for contractor referrals can lead to ATSCo rejecting a managed service company's (MSC's) application for membership, said chief executive Ann Swain. MSCs applying for affiliate membership must answer questions about the type of incentives they offer recruiters for referrals and if their incentives are offered as part of an HMRC-approved 'Taxed Award' scheme.
The REC does not admit composite companies to corporate membership. However, the practice of offering inducements would be "broadly viewed as unethical", external affairs manager Anne Fairweather said.
MSC Charterhouse Group International's Graihagh Mylchreest, group finance director, commented: "We deplore the use of cash incentives to recruitment consultants and any other practice that is not agreed openly with the directors of our business partners."
