Recruitment industry days are numbered in Oz

Australian employers are following their US and UK counterparts and giving recruitment agencies the flick, as management accountants and the unemployed toast their demise.

Employers have finally realized they can hire staff themselves or appoint internal recruiters at one tenth of the cost of the fees charged by recruitment ticks, who have fed off corporate Australia for more than 30 years.

Recruitment agencies have been making anywhere from 10-30 per cent of a candidate’s annual salary and about one-third of the fee goes to the recruiter, on top of their base salary. What for? For checking out a couple of databases, placing a $400 advert on Seek and short-listing candidates. The industry is wracked with over charging, incompetency and devious practices.

This is not a story about internal HR folk who monitor workplace safety, who do the hiring and firing and ensure people are paid and who keep the organizational wheels of a business turning. This is a story about private recruitment salesmen and women, the bottom feeders of organizational life.

Think I’m exaggerating. Then read this:

http://www.news.com.au/finance/work/former-recruitment-agent-spills...

That story is a rarity. The reason is that print media generally don’t run negative reports on the recruitment industry is because recruiters pour millions of dollars in to their coffers with job advertisements. Even the media can smell the stench of death and are circling for the kill.

To read more go to:

http://www.onlineopinion.com.au/view.asp?article=16068

Views: 245

Comment by ross clennett on March 3, 2014 at 9:31

That story you refer to, Malcolm, was one of the poorest pieces of journalism I have read in a very long time. As I note in my blog  http://blog.rossclennett.com/2013/11/business-editor-botches-recrui... the person responsible for that article breached her own company's Professional Conduct Policy a minimum of four times.  It was pure click-bait journalism. Pathetic on every level.

Comment by Malcolm King on March 7, 2014 at 13:25

I'll stand by her article as it was sourced. Seems a bit much a recruiter lecturing her and me (both journalists) about the code of conduct. Recruitment is in deep trouble for the reasons stated in my article. Until you get your house in order and flush out the bottom feeders, articles such as hers and mine will keep appearing.

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