20 January 2011 | Adviser Q&A
What do I need to take into account when buying permanent and temporary recruitment? Is there any current or future legislation that is pertinent?
Procurement manager, West Yorkshire
Kevin Moore, Interim procurement manager
This is a complex category so you must involve your stakeholders in detailed definition of the business needs. They will include HR and legal but may also involve IT or manufacturing – especially if your business utilises seasonal or project labour requiring definition of standard job profiles.
Understanding the total cost of ownership for the recruitment process is key in defining the true baseline for current spend and developing transparency for your tender. In particular you need to understand the costs of administration especially if you are a large user of temporary labour.
Only then can you select the best service model for your organisation and start your sourcing process. Models vary from a simple preferred supplier list through a master vendor to full recruitment process outsourcing with systems to manage the process and reduce administration costs. Ensure you understand the services, merits and limitations of each model.
You should consult your legal adviser on the impact of the Agency Workers Regulations due this year which seeks to clarify the rights of temporary staff.
Matthew Sanders, CEO of consultancy de Poel
When purchasing temporary and permanent recruitment through an agency, keeping costs down and ensuring the quality of workers is key.
Introduce preferred agency ‘panels’ or preferred supplier lists according to those who provide the best quality of workers at the lowest cost, in line with your recruitment requirements. Obtain visibility and control of spend and worker distribution so resources and budgets can be allocated efficiently and cost-cutting opportunities can be identified.
Temporary agency recruitment has emerged as a strategic response to the need to control costs; a strategy which is undoubtedly here to stay.
However, you must be prepared for the Agency Workers Regulations. Temporary workers will be entitled to equal treatment to permanent colleagues after being employed for 12 weeks.
But tracking when a worker has been employed for this period will mean significant changes to your internal recruitment processes. Software is one way to track this, but the real key is preparation.
Jes Ladva, London regional director, Recruitment and Employment Confederation
We have seen a rise in the number of businesses moving to a preferred supplier list model rather than hiring ad hoc. Managed service provision is also on the increase. This is largely because working in partnership with an employer enables agencies to respond quickly to changes in business needs, market trends or a potential crisis.
The key questions to consider are:
• Are my recruitment needs short, medium or long term? Often the best fix is not the quickest fix.
• What are the reasons for seeking a recruitment agency? If you share as much information as possible at the outset, you may be surprised with the range of solutions available.
• Am I seeking permanent or temporary support? Or both? Often permanent recruitment sits within HR, and temporary recruitment within procurement. Are these two aspects as aligned as they should be?
Recruitment partners are often in the best position to advise on legislation, such as the Equality Act or Agency Workers Regulations, their impact and how others are approaching compliance.
Key points
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Analyse your administration costs
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Establish your short, medium and long-term needs
- Seek advice now regarding imminent legislation
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Send you questions to adviser@supplymanagement.com
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Please note: responses can only be given on this page, represent
writers’ personal views and should be regarded as general guidance only.
