REC report identifies changing client relationship for recruiters

Payment on the basis of client outcomes is likely to provide staffing companies with increased opportunities to build their businesses in the future, says a report by the Recruitment & Employment Confederation (REC).
Thu, 5 Dec 2013Payment on the basis of client outcomes is likely to provide staffing companies with increased opportunities to build their businesses in the future, says a report by the Recruitment & Employment Confederation (REC).

Released today, ‘The Client Paradox: The changing relationship between client and agency recruiter’ identifies this model as one way for staffing companies to add value to what they offer and to build new business opportunities.

The report highlights one company, Originem, an employment services and payroll provider that has embraced this concept. Its payment from employing graduates working through online global trading network Innovo Network is a share of the profits that those staff generate.

Another example cited in the report is Hubstaff.com, which provides clients with data on the productivity of remote workers.

The report identifies a number of specific areas where recruiters need to improve their service:

  • Demonstrating expert knowledge of the market
  • Improved candidate communication both before, during and after the recruitment process to optimise applicant volumes
  • The use of video and Skype to engage with candidates, already normal practice in some big employers
  • Harnessing the increasingly available sources of credible information about candidate performance in professional communities and online work platforms

REC chief executive officer Kevin Green says: “The relationships between clients and our members are becoming more complex.

“To succeed in this new environment recruiters have to up their game and offer more value to their clients. Recruiters need to be at the forefront of new sourcing approaches, able to provide market data their clients don’t have access to and demonstrate how they can deliver more value and better outcomes.”

Les Berridge, lead consultant at Connectus and member of the executive committee of the REC Technology sector group, which commissioned the report, says:

“The changes in the recruitment landscape that this report highlights are happening already in the technology recruitment sector, but other sectors will follow shortly.”

The reports findings were revealed at an REC Technology sector group meeting.

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