The most successful recruitment agencies incorporate the principles in which the triple bottom line of People, Partner, and Principal work together hand in hand to achieve the maximum benefits on respective ends. It was established in the first two installments of this series how ethical recruitment mutually benefits People and Partner (agencies). The last sector, on the other hand, shoulders the high cost of ethical recruitment. Is it beneficial for a foreign Principal to invest in manpower agencies with high standards of ethics considering the cost? To cap off this series, here is how ethical policies could be beneficial in the last corner of the triple bottom line, the Principal.
Investment to Human Capital
Ethical recruitment is an investment to human capital, which is the most precious asset of a company and the most critical first step to tap the unnoticed potential. “The workforce is the primary way to drive revenue,” says Scott Pollak, a principal at PwC’s Saratoga practice. Ethics in recruitment will set the company apart in any industry. He added that having an ethical acquisition of the right people, at the right time, and at the right price will surely position themselves to a sustainable competitive advantage.
Even if ethical recruitment costs higher than placement fee-charging agencies, this protects the principal from the much damaging cost of resignation, retraining, and recruitment. Ethical manpower agency is legally contracted by the government to assist the Principal in the recruiting and hiring process. Even with a higher cost of investing to ethical recruitment, this ensures the company with better quality of candidates.
Compliance with Legislation and Regulation
Being ethical equates to being legal. Dealing with ethical recruitment agencies can make companies less likely run into legal difficulties. Compliance with national, international, and local laws can reduce potential costs of fines and sanctions and other damages in terms of resources, time, brand image, and even customer/employee loyalty. Long-range damage to reputation is even more costly than legal fines.
Commitment to integrity, honesty, and sustainability can essentially create a better business. A company built along ethical lines is rewarding and is most likely to survive financial pressures year by year. Having honest and transparent processes and policies for all workers could ensure the efficient optimization of human resources. Ethical reputation can also benefit the company by attracting investment capital effectively.
Survival and Profitability
A study by The Business Roundtable reported that ethics and a strong corporate culture are “vital strategic key to survival and profitability.” Apparently, many studies have proven how values and practices of ethics in recruitment have been correlated to financial performance. The corporate commitment of a company to ethics let them do better financially. It was also reported that in a span of six months, unethical behavior in a corporate setting could easily pull-down stock prices.
Confidence and Peace of Mind
Working with a reputable manpower agency guarantees a Principal with a good deal out of every recruitment agreement. Ethical consultancy firms work hard to line up only the best candidates for every vacancy. Being ethical assures Principal with a rigorous screening process that will lead them to hire only the best candidates who have the right qualifications and most fitting capabilities.
The end goal of ethical recruitment is to achieve a win-win scenario where expatriates are less vulnerable to exploitation while making employers less vulnerable to reputational damage.
ABOUT THE COMPANY: Rensol Recruitment and Consulting, Inc. is the fastest growing recruitment agency in The Philippines. A career consultant that aims to go above and beyond the level of expectations of both the aspirations of the candidates and the dream team standards of employers through providing exceptional opportunities and unparalleled quality-driven recruitment services.
Upon finishing a journalism degree with flying colors, he has discovered his niche as a freelance journalist in a health and lifestyle journal, a travel magazine, a science blog, multiple news websites, various advocacy blogs, and a social entrepreneurship network. His innate affair with writing eventually brought him to the business of recruitment and human resource. A writer and an advocate at heart, serving people through his capacity for words has been his passion.