The world and beyond – Surviving in the economic jungle

Advice, tips and tricks on how to engage with the UK jobs market and commercial environment, from a female executive's perspective

I am not often at a loss for words … But is this a confllict of interest?

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conflict-of-interest

The recruitment industry in the UK is an interesting economic place. Totally unregulated, it is driven in the main by commercial demand and financial means, both by the corporate recruitment fraternity and the major large employers. The smaller agency players in the market have no choice but to go with the flow, if they want to remain competitive. And candidates have to try and find relationships with agencies they can trust if they want to progress their careers. Its a free market economy in the true sense of the word.

But there is one issue that wants me to leap onto my band wagon at the moment: Conflicts of interest in the business relationships recruitment agencies have with their clients.

I recently dived back into the automotive engineering recruitment pool, after spending some years on the periphery in the automotive aftermarket. What I am finding consistently as I begin to engage with past and potentially new clients, is a slightly disturbing situation that defies common sense in business.

The engineering industry in the UK is enjoying a resurgence after being severely hit by the recession, and the demand for scarce skilled candidates is at an all-time high. There is real competition for people with good qualifications, stable career paths and functional expertise in core technical and commodity areas. These candidates have a luxury of choice when it comes to job opportunities, and I have heard of bidding wars between competing potential employers to obtain and retain the most sought after engineering abilities.

You would think that, given the state of the economy and the skills shortage that has raged in this industry for years, employers who use agencies for recruitment would recognise the need to protect their resourcing and human capital strategies in the same way they would protect their technology or their intellectual property. After all, the people they employee are the keepers of these secrets.

They don’t.

And the reason I know they don’t, is that the same small handful of agencies seem to own Preferred Supplier Agreements with most of the major employers. Sometimes the same agency has PSA’s with directly competitive companies, in exactly the same geographical and technology  areas.

If I was an employer, this would worry me.

I am not an employer, and it worries me. How are these companies protecting the vested interest they have in their staff? Why are they allowing competition for their own staff through their current supply base? And why are they paying a (highly negotiated, remember its a PSA) fee for the pleasure?

Not much leaves me speechless. But I am certainly at a loss for more words regarding this subject. For now, that is!

 

 

 

 

 

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