The recession has had many effects on business — recruitment freezes, bonus holds and the tightening of purse strings being three major reactions. So, with every industry feeling the strain, I’ve been shocked and appalled at the recent trend rearing its head in the recruitment arena — the appearance of pre-pack agencies.

Pre-packs are recruitment agencies that, after falling on hard times, have filed for bankruptcy, only to re-open the next day under a new trading name. Pre-pack agencies are unstable in their very nature, and the last thing customers need at this time is more uncertainty. These pop-up companies may appear legitimate, but with an unchanged board, similar business model and little capital banking, they are unlikely to last for long. With everyone in the same boat, a trend such as this has the potential to rock the industry to the core — bringing it down, in customer’s eyes, to the low standards of a few rogue agencies. What customers are looking for today is stability, loyalty and consistency: the absolute
opposite of what a pre-pack offers.

Losing money, reputation or custom during a recession is simply not an option for any company. Customer relations will be critical in getting through these turbulent times, and if the actions of a few tarnish the reputation of others, it could have serious implications for the future of the working world.

If pre-pack agencies are to continue to cause upheaval in the industry today, the rest will need to work more closely than ever with their customers to retain confidence. By implementing good business practices — listening and responding to specific client needs — and thus becoming a trustworthy advisor, agencies can retain custom during the tough times and into the good.

Essentially, a wolf in sheep’s clothing is still a wolf — untrustworthy, unpredictable and out for themselves. It is critical for our industry to prove its worth, now more than ever, pulling away from the immoral practices of the minority and showing support to customers when they need it most.

Alan Rommel
Managing director at Parity Resources