Client panel gives frank views on what they expect from staffing industry at ATSCo conference

A panel representing a typical corporate decision making group, including procurement, HR, IT and legal experts, gave their views on what end-users expect from the IT staffing industry at the Association of Technology Staffing Companiesí (ATSCo) 2004 conference at Londonís Caf Royal.

The panel, consisting of John Cullen, Head of Barclays HR Services, Alan MacKinnon, Recruitment Manager, of T-Mobile, Guy Deterding, IT Director, of Modis International, and Kevin Barrow, Joint Managing Partner, of lawyers Tarlo Lyons debated key issues effecting the future of the recruiter-client relationship.

Ann Swain, Chief Executive of ATSCo commented: This was a very frank and open debate and it was interesting to hear from the panel that, despite what recruiters may feel, margins are not the principal factor in the tender process.

Companies look at a range of criterion when choosing a staffing supplier, from the quality of the candidates to the agenciesí track record and knowledge of the employment and regulatory issues effecting the end-user. Price is a critical factor, but none of the panel ranked it number one.

The future for staffing companiesí margins ñ will fees rise?
The panel took a mixed view on this, but the general consensus reached was that recruiterís margins could rise if the market experienced strong, sustained growth. This was qualified, however, by the observation that recruiterís margins are highly reflective of competition within the industry. A flurry of M&A activity in the sector could reduce the competitive pressures on margins in the longer term.

The panel agreed that low-end, bulk skill work would probably continue its offshore drift but that recruiters with expertise in supplying senior level niche skills could be better positioned.

What innovations and added-value services should recruiters be offering?
The panel said that recruiters should be looking to provide end-users with more information benchmarking and other performance measurement data.

The panel also highlighted diversity management as a particular area where staffing companies could be looking to expand their range of services.

Another suggestion was that managers needed more visa information from recruiters to enable them to implement better resource planning.

However, the most controversial idea put forward was that recruiters could add value to their services by incorporating some outsourcing role. Recruiters could help clients, it was suggested, by identifying which IT functions should remain in-house and which should be outsourced. The recruiter could then look at supplying and managing UK and offshore support desks.

Should recruitment consultants work to commission?
The panel was asked to consider whether the impact of low margins on recruitersí staff, many of who are remunerated on a commission basis, could prove de-motivational, effecting the quality and efficiency of delivery.

End-users need to know more about how individual recruitment consultants are paid, said the panel, so that a frank and honest discussion about margins and their impact on service delivery could be tabled with the staffing industry.

The panel warned that some end-users were starting to insist that, in order to ensure a greater consistency of delivery, key account handlers should perhaps be remunerated on a non-commission basis. Most, however, still saw value in a well-planned commission structure.

Summary
Ann Swain says; With over 200 delegates this was a hugely successful event and the biggest staffing conference in several years. It is vital that recruitment, HR and procurement professionals have opportunities like this to learn more about each others jobs.