Agencies

Managing temporary agency labour spend is never easy.  Indirect costs need to be considered along with those of a direct nature when gathering marketplace spend data.  Implementing effective recruitment agency management strategies is paramount in an economy that is still struggling with recession and sustainability issues to prevent even further businesses going into administration.

Recruitment agencies are responsible for selecting and providing temporary agency workers that are the most appropriate candidates for the job.  

Organisations need to involve all relevant departments when determining which recruitment agencies will appear on their panel list of preferred agencies rather than the head office being the sole decision maker.  Detailed input from operations, procurement, finance and HR will all need to be obtained when considering which agencies are best placed to supply agency labour.

The recruitment industry is both highly fragmented and unregulated, this means temporary agency workers are provided by multiple agencies with varying business terms and quality standards across numerous locations.  Successful recruitment agency management is essential for organisations using temporary agency labour.  Inefficient management of recruitment agencies can result in poor quality spend, legal exposure and limited control over ongoing agency performance.

Market-driven pay averages for specific jobs are an essential element for consideration when it comes to recruitment agency management.  The job-specific margins, like the pay rate, will also need to be balanced in relation to industry trends. A margin that is too low will invite poor quality suppliers, whilst a margin that is too high is likely to attract the more unscrupulous agencies.

Many firms are unaware as to what they are spending on temporary agency labour, where it is being allocated or how costs are being calculated.  de Poel allow businesses of all sizes to analyse and manage temporary agency labour spend through the revelation of visibility and con­trol of costs at all levels.

de Poel also cater for large firms who use a large amount of temporary agency workers to supplement their work­force in response to seasonal and market shifts. Despite regularly planning for taking on extra staff to cope with increased demand firms still incur extra avoidable costs through additional administration, legal compliance and supplier performance costs.