In TTC’s latest AMA session conducted on Slack, In-house TA and agency recruiters exchanged insights into their practices, challenges, and perspectives on the evolving landscape of recruitment. The session covered topics ranging from negotiating terms and conditions, to adapting to technological advancements in recruitment, such as AI.
Negotiating Terms and Conditions:
The discussion was kicked off by TTC Founder Sean Allen, who inquired about the frequency and rationale behind signing client-issued terms and conditions as opposed to agency-defined ones. Arj Gillard, representing the agency side, explained that while he prefers to operate under his own terms, about 30% of his engagements require signing client terms, especially with larger companies. This often involves legal review, which he noted as a significant overhead now that he operates independently. Karl Penhale (from Wave Talent) echoed this sentiment, emphasising that terms are crucial for mutual protection and typically crafted to align with the specific legal and operational nuances of the agency. He also noted the practicality of using client terms to expedite agreement processes. Sam Boatwright, another agency recruiter from Alderson James, mentioned that only about 5% of their roles operate under client terms, mainly due to less favourable financial terms or constraints in the rebate period, although efforts are always made to negotiate workable terms for both parties.
Impact of Fee Percentages on Agency Engagement:
The next question shifted towards the impact of fee percentages on the engagement levels of agency recruiters with their clients. Here, different practices were highlighted, with Arj Gillard revealing an average fee percentage of 21.8%, influenced by factors such as role volume and exclusivity. Sam Boatwright pointed out a general working rate of 20%, showing flexibility depending on the duration and nature of the client relationship. The discussion underlined an implicit strategy among agencies to prioritise roles based on the fee percentage, acknowledging a direct correlation between fee potential and the intensity of recruitment efforts.
Candidate Representation and Conflict Resolution:
Parul Singh, Neurodiversity and Recruitment Marketing Consultant, brought up the issue of disputes over candidate ownership, a situation where multiple agencies might claim representation rights. Sam Boatwright described her approach to securing explicit consent from candidates via email, which clarifies representation rights and is communicated to the client to prevent conflicts - something echoed by Arj who shared his own go-to template. This practice underscores the agencies’ commitment to transparent and ethical recruitment processes.
Adjustments in Recruitment Post-Pandemic:
The next question from Charlene Simpson, TA Manager at Funding Circle, covered the significant changes in recruitment practices triggered by the pandemic. Sam Boatwright noted a shift towards more hybrid working models and stressed the importance of adapting communication and feedback mechanisms to align with these new working conditions. This adjustment is crucial for maintaining candidate engagement and ensuring efficient recruitment cycles.
Embracing AI in Recruitment:
TTC member Nelya Pearson queried about how agencies are preparing for AI innovations in recruitment. Arj Gillard shared that his strategy involves staying informed about emerging tech trends through discussions with hiring managers and developers. This proactive approach helps the agency align its recruitment strategies with the latest technological advancements, ensuring they remain competitive and effective.
Market Reports and Salary Negotiations:
A fantastic question that got folks talking was about the accuracy of market reports on salaries, and also around candidate expectations which was raised by both Parul Singh and Tony Payne (founder of ApplyPRO and former TA Director). Arj Gillard detailed his method of compiling these reports through comprehensive surveys, aiming to provide reliable data that informs both candidates and clients. The conversation highlighted the nuanced approach agencies must take in salary discussions, balancing candidate expectations with market realities.
Collaborative Networks and the Future of Recruitment:
Finally, the benefits for agency recruiters being part of networks like TTC were discussed. Karl Penhale expressed enthusiasm for the collaborative opportunities provided by such networks, which help bridge the traditional gap between internal and external recruiters. This shift towards cooperative engagement is seen as a positive evolution in the recruitment industry, fostering a more integrated and efficient approach to talent acquisition.
This session provided valuable insights into the current state of recruitment practices but also highlighted ongoing innovations that are shaping the future of the industry. It was a great session and thank you to everyone who took part: both panellists, moderators, and our amazing members getting stuck in with questions!