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Discussion:
Your Thoughts and Suggestions

Our recent discussion forum---"Are Recruitment Agencies Bad?"---has generated a good deal of discussion, both positive and negative. As a result, one of our members has suggested that, in addition to a general discussion of the merits and flaws of recruitment agencies, we might also canvas some practical ideas for their improvement. To kick things off, we've posted his contribution below. If you have other ideas, or want to take issue with the suggestions made here, please use the mail link below.

You can find the original discussion forum here.

[If you would like to contribute to the discussion, please e-mail your thoughts to us at: contact@contractworld.com.au.]

On 29 June 2009, Electra wrote:
    Here is my suggestion for redressing the massive imbalance in the recruitment/contractor industry:

    1. Legislate that all recruitment firms MUST use a standard form engagement contract. This contract would be the result of negotiation between peak bodies to ensure that all sides (recruiter, contractor, engager) rights and obligations are represented. Such a system exists for the sale of land, cars, finance which were once plagued by shonky operators. These contracts MUST make both the recruiters and engagers liable for their actions if such action could harm contractors.

    2. Advertised positions MUST exist and MUST contain the details of the engager, the rate range on offer and any salient details about the role; not sales stuff but real attributes of the position. If we have laws to force sellers to disclose details in other areas then it should apply to the work force as well. There is more relevant information on a muesli bar than there is on a $100,000 contract.

    3. ALL parties with an interest in applying for a role should be entitled to apply for a role. The current system of engagers establishing "panels" of recruiters is like a legalised form of collusion. Many contractors are businesses and they should be entitled to apply for positions as businesses. If this places too much work on engagers then employ a recruitment person!!

    4. Apply the same principles of wage fairness to contractors. Recruitment firms pit contractor against contractor until they obtain the best margin and this should be stamped out. The mechanisms exist to determine a "fair" remuneration range, or at least a minimum level, and this should be commonly available.

    5. Establish a government supervisory role to monitor the recruitment industry and investigate complaints. This body should also register the agencies and ensure that they meet a minimum standard for working in that industry. If a gym instructor has to have a cert 3 or 4 just to show someone how to exercise then why is the recruitment industry devoid of regulation?

    6. Enable the ability for contractors to "list" their skills on a system that allows engagers to find what they want rather than use recruitment firms. The technology exists to create a system that provides a repository of available labour.

    7. Contracts for a term should be for that term. If an engager wants someone for 6 months then they commit to that 6 months or pay the balance.

    8. Legislate to eradicate the practice of engagers hiding behind recruitment firms to avoid workplace relations law. This should include government!!!

    9. Establish a code of conduct for the recruitment industry that has penalties attached to violations. Recruiters that persistently or knowingly violate the code should be deregistered.

    There is probably more but if the Minister for Independent Contractors had any influence over his Department or was even the slightest bit interested in doing something about this issue he would have the legion of public servants do this work rather than us.

On 1 July 2009, Diane wrote:
    Thank you for the opportunity to submit some practical solutions to this issue.

    My proposed improvements are:

    Restriction Clause to be refined:
    On my last 2 contracts both Agents used a standard form which has a Restriction clause of 12 months on Contracts regardless of duration, e.g. 3 month contracts. I recommend that the restriction is related to the contract duration. Current clause is:

    • The Contractor and the Consultant agree that they shall not at any time during the terms of this Agreement or for a period of 12 months after the date of termination of this Agreement, provide services (in any capacity) to the Client.


    Increase Competition:
    If the Contractor was of the opinion that their current Agent failed to fully represent them during contract renegotiation, the right to switch Agent on contract renewal would be more competitive. This could take the form of the right to request a 'renewal quote' from another Agent on the Clients preferred supplier list. Currently the Contractor has no alternative than to accept or decline, because of the Restriction Clause (see above).

    (PS I think this is on a dream list to ever happen)

    Improve Transparency:
    Where the Agent has entered into a fixed margin Contract with the Client, it should be possible for all parties to see both sides of the Contract, particularly on Government contracts where 'value for money' is a key driver. This could be managed by the Client issuing a notice to the Contractor detailing both rates, the Agents charge out rate to the Client and the rate to the Contractor.

    This would improve transparency and satisfy all parties that the arrangement has been adhered to.

    As I mentioned in my original thread I've been an ICT Contractor for 20 years and the issues raised on your forum are the same issues I've heard and raised from day one. Surely we can make some changes now.

[If you would like to contribute to the discussion, please e-mail your thoughts to us at: contact@contractworld.com.au.]