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"The customer
doesn’t want to sign a contract for many reasons. He doesn’t need to cheat you.
There are perfect contracts, under which nothing was paid. And at the same time
a lot of services were paid simply on parole.
However, the future belongs to clear and firm contract relations. The
good-developed documentary base is an element of your technology, an indicator
of your agency’s solidity. Putting his seal the customer select reliability,
prestige and quality…Probability to close an order ‘without contract’ is lesser
by 30% against the contract de jure. The ‘urgent’ vacancies (‘Fire! Get the
resumes, quick! We close them at once!’) are being closed, as a rule, in
relation of 1:10 and not ‘at once’ but after 1-2 months of the heavy moroka (troubles)” [85].
The
agency shall ascertain and fix in the contract the following: the schedule
framework; obligation of the customer on nominees hired after the contract’s
expiration and/or to another vacancy; factors of the contract’s termination or
modification; obligation not to pirate the agency’s nominee or any customer’s
employees within an agreed period; confidentiality agreement [116, 117].
The agencies are trying to include the
prepayment requirement into a contract
[2, 5, 23, 47,
68, 70, 71 and 75]. Here the mutual reproaches and distrusts clash with each
other. On the one hand – "I don’t make prepayment being not convinced in
quality” (some agencies did not close a position though having the prepayment)
[23]. On the other hand - "an erroneous standpoint exists…that deception of the
agency through non-payment of an order is not an indicator of low
business-ethics and business-culture” [16]. I personally prefer a pragmatic, without excessive emotionality, wording
of the answer to the question – why the agency asks a prepayment? [19]: "…in order
to be convinced of the client’s seriousness of intentions. The client shall
undertake that we will not run free. The
prepayment shows also that the client respects the agency solving a problem
essential for him. Why the client is ready to make the prepayment? He ensures
his peace of mind, since he will be serviced in the first place. Many recruiters
apprehend the prepayment as an emotionally and psychologically discomfort condition
increasing their personal responsibility. The received money has to be worked
off by all means. So, not all of them are too eager to ask the prepayment”.
Before effecting
a deal finally, the parties stipulate thoroughly for the guarantees. At sourcing
and recruiting without agencies
participation about 30% of all newcomers meet with failure within the first
year [80].Having first-hand knowledge of this fact and paying for rather expensive
services of high-professional recruiting, certain employers would like either
to guarantee free replacement of unsuitable nominee or get back part of the payment
(the whole payment if possible) [6, 13, 19, 23, 27, 38, 48, 57, 65, 70, 71, 73,
74, 85 and 86]; moreover, some of them may require the "missed profit” percentage
from the agency plus unlimited number of replacements. As a result, only 5% of the
"heads” leave their companies before expiration of the guarantied time [116].
At composition of
this review many versions of guaranties were met. The most powerful and
comprehensive one is developed by the Canadian Agency AMROP: free replacement
of dismissed/resigned/deceased nominee or return of the fee within 2 years; at
the same time the fee totals 35% of the total package (salary, car, bonuses
etc.) plus payment of all the technical expenses of the agency during work
under the order (17% of the fee amount) [19].
Another example
is described in [80], where the money paid to the agency for sourcing of an
officer executive was equal to the sum to be paid for replacement of the whole
sale department in amount of 30 people through the leading, i.e. not cheap,
agencies.
The usual
salary-guarantee ratio is a single replacement within 3 months at the fee
amounting 20-25% of the nominee’s year salary (2.5-3.0 month salary).
The cost of
services and unreadiness of employers to pay for them is a separate, very
favorite and very sensitive theme of recruiters. I would like to restrict
myself by the following citation from [77]: "Sometimes the consumers are
becoming ‘deafened’ by opening that not all agencies make their living at expense
of people getting job, and they receive this news inadequately. Some of them
remain in a state of psychological trauma and respond in the following manner:
‘we don’t work with agencies because of our negative experience in similar
collaboration’, ‘your fee within the framework of a single salary is quite
enough’ or ‘show me the resume, and I think over, if this resume deserve such
money’., ‘for me only the result is interesting, but I don’t want to know how
it was reached. It is great that you have mastered the direct sourcing, however
I had an experience in inviting the agencies of standard methods for finding
managerial personnel - and their services were cheaper”.
Development of any agency consists in constant professional growth of
its employees. The leaders "perform training every three months for cultivating
habits of effective interaction and sharpening professional skill”[68], they
elaborate their own training methodologies [52, 76], participate in projects dealing
with preparation of professional recruiters on the basis of specialized
faculties in high school [87] and at training facilities of personnel
associations [115].