Recruiters and employers in the east call for master vendors to uphold new code of practice

Employers and recruiters in the East of England have shown their full support for a new Code of Practice for the industry, which sets out a professional code of conduct for Master Vendors. The new Code of Practice for Master Vendors is being developed by the REC, the biggest voice of the 24.5 billion recruitment industry and is currently the subject of consultation with recruiters. If approved, it is likely to be launched in the summer.

Master vendoring is a relatively recent phenomenon. It has developed in response to demands from employers who have increasingly found the logistics of dealing with multiple recruitment companies difficult to manage. By using a Master Vendor, an employer can consolidate all its recruitment needs through one point of contact, the Master Vendor. That way the employer only needs to be concerned with settling one invoice and adhering to one set of terms and conditions, both issued by the master vendor. The Master Vendor is then charged with managing the supply of labour and other recruitment solutions delivered by the secondary suppliers.

Many Neutral Vendors are not professional recruiters, but procurement companies whose aim is both to ensure efficiency for the client employer and to drive down the costs of temporary and permanent recruitment. The driving down of cost has caused concern amongst recruitment specialists because all too often it has compromised the obligations of recruiters to carry out the statutory checks and recruitment procedures required under the Employment Agencies Act Regulations and other recruitment related legislation.

A conference in Cambridge held by REC East at the end of February on Master Vendors and Service Providers, entitled ëThreat or Opportunityí, was attended by Master Vendors, recruitment agencies and client organisations from Norfolk, Suffolk, Essex and Hertfordshire. Attendees called for Master Vendors in the East to uphold a new Code of Practice to ensure that recruiters and employers in the East maintained the highest level of service standards for clients and candidates.

The new Code of Practice seeks to ensure that the process of Master Vending does not cause the quality of the services supplied clients to be impaired. It aims to ensure that suppliers do not agree prices below which they can reasonably supply a quality and statutorily compliant service, and that all parties in the Master Vendor relationship are treated fairly. REC East believes that the Code of Practice will ensure that clients receive the best quality and levels of staff.

Driven by the quest to manage down recruiting costs and management time, clients are increasingly using their procurement departments and Master Vendors to recruit staff, through consolidating the numbers of agency contacts and leveraging economies of scale.

Paul Finch, Chairman, REC East comments: ìWe have our clients and candidates interests at heart, so naturally weíre eager to work in equitable partnerships with Master Vendors. The ideal situation for REC member agencies is one that ensures all clients make informed and educated choices when formulating their recruitment strategies.î

Sharon Rix, Support Services Manager, MSXI Europe, Essex comments: ìMSXI has been a master vendor for the past ten years providing highly professional recruitment services to the automotive industry. We welcome a new Code of Practice as it will ensure that the very best standards of service are delivered to clients and candidates. We have an excellent relationship with the recruitment agencies we work with and have adopted many of the policies put forward in the new Code of Practice.î

Dale Smith, Director of KPC Global Resourcing Consultancy supporting the Financial Services, IT Consultancy & Telecommunications markets, Southend, Essex comments: ìMaster Vendors provide both a threat and an opportunity to the industry and they are undoubtedly here to stay. They make absolute economic sense for some client organisations. However, it is important that the employment and recruitment industry maintains the highest standards of service and that we are not caught in the trap of commodifying candidates and our service to drive down costs.

ìAt KPC we offer specialist and niche recruitment services for three core markets and as such have very few competitors, so we are in a fortunate position. We work directly with clients and through Master Vendors. I welcome the new Code of Practice as I believe it will protect the interests of clients, candidates and recruitment agencies.î

With almost 8,000 corporate members and 5,500 individual members, REC East represents employers and recruiters. All REC members adhere to the REC Code of Good Recruitment Practice, which has been developed to ensure jobseekers and employers receive the highest recruitment standards.

REC East is committed to raising the standards of the recruitment industry in the region and has sponsored the Suffolk Recruitment Awards. Set up in 2005, the Awards are designed to celebrate the achievements of the local recruitment industry. The categories including Consultant of the Year, Recruitment Company of the Year, Best Recruitment Website and the Ambassador for Suffolk Award, which rewards the company that has most effectively attracted employment in to Suffolk and/or has done the most to promote a positive image of Suffolk as a place to work.