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Survey "a wake up call" to recruitment firms

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“This research is a definite wake up call for our industry to prove its worth”, says Albert. Over the past 18 months the recruitment industry has become a margin conversation as employers looked to drive down costs.”

That’s according to Jim Albert, Managing Director of Modis International, who has issued a rallying call to the recruitment industry to promote the value recruiters collectively bring to the recruitment process.

Albert’s comment come in light of research carried out by Modis International that shows 72 percent of companies do not believe recruiters currently delivered value for money. The research also showed that 1 in 3 companies want to develop deeper relationships with their recruitment consultancies and focus more on developing true business partnerships, rather than employing low cost transactional recruitment models.

As we recover from recession, employers are once again demanding that recruiters deliver a true value-added service. As an industry, we need to shift our focus from a cost-based cycle to a value based approach going forward. We are at a point where we have a terrific opportunity to re-frame the conversation with our clients.”

As the economy continues its path to fragile recovery, the role of recruiters will become increasingly important as organisations look to attract the highest calibre people to help their business grow and develop. High touch recruitment consultancies will once again help drive that activity and become the standard bearer for the recruitment conversation.

“By focusing on the core concerns of our clients around quality, the effective use of time, and growth, we will be able to open the door to deeper conversations around the value of recruitment. Those conversations will inevitably translate into more productive and effective relationships, and ultimately a greater reputation for our industry,” he concluded.

Tough times increase court time

Baxter Caulfield, the Huddersfield based legal practice, says the long recession has led to an increase in litigation. The firm’s thriving commercial and employment litigation department has been busier than ever in the last 12 months.

An analysis of the firm’s cases reveals five top reasons for disputes leading to the instruction of solicitors: Disputes between owner-managers within private businesses, the collection of debt, changes in terms and conditions of supply employment issues and breach of confidentiality.

Stephen Newman, senior partner at Baxter Caulfield Solicitors, said: “Private businesses are still finding the going really tough. They often need to make changes to reduce costs but are hindered by issues arising from contracts that were drawn up in more certain economic times. When incomes and profits are reduced business owners invariably reassess the long term viability of commercial relationships. This often creates tension in those relationships.

“There is no doubt that the diminished economy has contributed to the escalation of disputes and lawyers are being instructed more often than would be the case in times of greater prosperity. Tighter money means that all avenues are being pursued to maximise income or reduce costs.”

He concluded: “In the rush to law people sometimes forget that lawyers can also be used to mediate or arbitrate on disputes. Alternative dispute resolution can sometimes prove to be a relatively quick and less costly means of settling disagreements, and it should not be ignored.”

24 February 2010

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