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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.

Cost-effective

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.

Better Business

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.

PRAASA Conference

Subic Bay Freeport, Philippines – April 22, 2018 – Rensol Recruitment and Consulting attends the Joint Phil-KSA Industry Conference on the Welfare and Protection of Overseas Filipino Workers.

In line with protecting the welfare of OFWs in Saudi Arabia, the Philippine Recruitment Agencies Accredited to Saudi Arabia (PRAASA) board and POEA licensed recruitment agencies all over the country gather for a three-day conference held at Subic Bay Travelers Hotel and Events Place from April 22 to 24.

The conference theme “Working Together on a Common Vision for a Better Protected Overseas Filipino Worker” is so relevant to the issues and challenges on the welfare of OFWs today. Many propositions have been put forth as solutions to improving the welfare and protection of OFW’s in the middle east, specifically, the Kingdom of Saudi Arabia; but inequity and injustice to Filipino workers are still rampant, hence, the need for the government and licensed recruitment agencies to unite, consolidate their best practices, and move forward with most favorable resolutions.

Rensol's BDM with OWWA Officers

Rensol’s Business Development Manager John “Genz” Del Rosario with OWWA Deputy Executive Director V, Mr. Arnell Ignacio and Former OWWA Administrator, Dr. Carmelita S. Dimzon

PRAASA Conference with Congressman Aniceto "John" D. Bertiz III

Genz with Congressman Aniceto “John” D. Bertiz III

The rapidly growing association had speakers ranging in topics from Dr. Carmelita S. Dimzon, speaking on OFW Rights, Lito Soriano speaking on Ethical Recruitment, Mary Victorino on her presentation on hiring Filipino workers, Noel Litan and John Torres speaking on priority issues on worker protection; Abdullah Shamsi Alfrijy, Atef Al Jehani, and Mazen Al Humaidan spoke on behalf of Saudi Recruitment Agencies and their role in protecting OFWs, and Prof. Jean Encinas-Franco giving a workshop on forming a Technical Working Group for this endeavor.

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.

 

Partner

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. The first blog emphasized the importance of “People.”  Here’s an in-depth look at how fairness and ethical practice benefits recruitment agencies themselves, which serves as “Partner,” both for the People and for the last corner of this pyramid- the Principal.

Partner or recruitment agencies play the crucial role of facilitating labor mobility by matching People to the Principal and vice versa. A good recruitment firm impacts the people and their communities (https://rensol.com/ethical-recruitment-agencies-people/) and their clients, but how does a recruitment firm win in an industry where zero placement fee is a minority in the competitive field?

Recruitment agencies have to generate profits yet the motive of having too much of it is the root of evil in the industry. Many resort to unethical practices of excessive fee charging – one month’s worth of the worker’s salary is acceptable as a placement fee under the Philippine law. Anything over that is considered illegal. Unfortunately, practices such as this where the partner has more initial gain are more patronized by a larger base of clients because of cheaper costs and impelled to be accepted as a norm.

Unethical practice can make a company gain big by deploying workers with a lesser incentive to a decent employer or deploying decent workers to an abusive employer.

Above the advocacy of protecting the rights of expatriates and client companies in every service agreement signed, recruitment agencies, being the powerful sector in the migration process, are expected to position themselves as ethical duty bearers for all the stakeholders involved. Ethical recruitment has many facets but the cornerstone of it, as it was broadly used, is the non-fee charging scheme to workers.

Approximately 9 out of 1,500 recruitment partners in the Philippines don’t charge placement fees from their workers. The advocacy of ethical business practices is in the works to level the competitive field fairly and to limit unethical companies from making billions of dollars out of illegal profits.

Even if the Philippine labor laws allow collecting of placement fee, few recruitment agencies took the initiative to apply the “employer pays model,” even if this might not be appealing to the Principal sector because of higher costs, believing that this is the ethical way of doing this business.

The Employer Pays Principle reflects the “Dhaka Principles for Migration with Dignity” that states that no worker should pay for a job. This principle has been widely adopted by many companies across varying range of industries in the world.

Here are the corresponding impacts of this ethical practice to Partner agencies:

Build and preserve company brand and reputation as an ethical company. Ethical business is a smart business while an unethical one is damaging to the industry’s image. By offering zero placement fee, consumers can be given a choice not to deal with unethical ones. Ensuring ethics in all the activities of the agency enforces a strong brand reputation. Recruitment processes essentially reflect brand communication and flaws in it may risk brand perception and may seriously impact customer satisfaction.

Gain trust and boost company’s market value. Global brands are very much keen with reputational concerns as this will surely affect the public opinion against them. This builds stronger client relationships and even increase the number of “repeat” customers. Coincidentally, these led to building lasting relationships with Principals.

Marketing Advantage. Zero placement fee is also a marketing advantage in talent attraction. Being ethical is attractive in all its sense. Being honest with all the processes builds trust and brand loyalty from your target market. Respect for the dignity of every worker and safeguarding their human rights give them security. Establishing a positive jobseeker morale brings higher efficiency in their respective job sites. Their successes significantly bounce back to recruitment agencies.

Ethical recruitment differentiates themselves in the market. This helps them gain a competitive advantage over their competitors in the industry. Zero placement fee is a compliance to the International Labor Organization (ILO) General Principles and Operation Guidelines for Fair Recruitment. Apart from being a CSR initiative, ethical recruitment is a human rights principle reflected in the international law. Abiding such is an indicator of a company’s competitiveness in the market as a global industry.

Ethical practice lessens the risk for recruitment firms from losing their business. In an industry where illegal recruitment and human trafficking have been a threat that ruins the image of the industry, ethical recruitment is the future in the works. This also entitles an agency for a distinct relationship with the government being a decent provider of jobs to the competitive workforce. This helps them avoid facing legal liabilities, civil, and criminal litigation, and prior administrative penalties.

The ethical practice has been a fueling agent for small-medium recruitment firms to be the fastest- growing in the industry. Good reputation and customer satisfaction are the ultimate “win-win” for a recruitment agency with ethical practices. Ethics maintains their high corporate standards and their commitment to social responsibility where real profits rebound to the partner agency.

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.

Rensol Advocary

While the Philippine Overseas Employment Administration (POEA) allows recruitment agencies from charging placement fees from candidates, 9 out of 2,000 firms oppose the tide as an ethical practice to serve Filipinos.

Even if the no-placement-fee system may cause indifference to some foreign clients because of the inevitable higher cost, these agencies brave to pursue ethical recruitment with integrity in mind assuring that this is the way of fulfilling everyone’s goal for success.

Here are the main reasons why “zero placement fee” is the future of the Philippine staffing and recruitment industry:

  1. Technical Skills minus Financial Capacity equals High Ethical Corporate Standards

Skills over money

Workers should be selected and screened based on their technical skills and qualifications rather than their ability to pay placement fees to get endorsed for a job. No placement fee allows the partner recruitment agency to only factor out candidates based on their capabilities and experience, and not their financial ability to pay to get a job.

Employers who shoulder the cost of recruitment of workers abroad can be assured to receive a more ethical recruitment process from their partner agency. Paying this on behalf of their future employees give them the leverage to choose what kind of workers they need. They can also be insured with due diligence from their strategic manpower partner. They can be guaranteed that recruiters will work for the client’s best interest by not putting poor candidates just for the sake of extra commissions.

  1. Magnet to Best-Performing Candidates

Rensol Ethical Recruitment - No Placement Fee

The “no placement fee” tag on recruitment advertisements is an effective tool for talent attraction. Most qualified and experienced candidates are wise enough not to patron agencies which will just make money out of them.

While there is no doubt, availability of candidates in the Philippines, one would also have to understand that opportunities are being presented to them left and right.  The common factor among the most successful recruitment agencies is their unwavering policy of not passing on the cost of the recruitment and processing on the candidates. If a candidate is presented 5 opportunities, and 2 of them are for companies who are professional and will not allow their agent nor their companies to burden the candidate any cost, the said 2 opportunities will be the one that the candidate will surely focus on.  

Predominantly, the promise of ethical recruitment is the main selling point of each job order.

  1. Avoidance of Exploitation of Skilled Workers

No to Worker Exploitation

Some recruitment agencies tend to charge high recruitment fees. This practice is already categorizable as illegal recruitment and is already an exploitation to their vulnerability even before they arrive at their job destination. In cases of maltreatment and abuses, migrant workers are subjected to “forced labor” when they find no way out of their job because of the debt bondage they had incurred to attain it.

Additionally, a worker not charged with a placement fee is in a better position to contribute effectively to the job he signed up for because he no longer needs to worry about loans to pay. The Institute for Human Rights and Business attested that “zero placement fee” will surely fortify the company with better workers. This scheme guarantees every worker’s financial wellness, which will, in turn, maintain their happiness and productivity at work. (Read more: https://rensol.com/ethical-recruitment-agencies-people/)

  1. The Philippine Government Encourages Fair RecruitmentPOEA
    With many reports on abuses and financial ruins to families of OFWs because of placement fees, government’s efforts to minimize victimization to exorbitant fees and fraudulent recruitment by means of overcharging was given the highest penalty under the law.
  1. A Commitment to Social Responsibility

Rensol's Corporate Social Responsibility

The reputation and integrity of an employer is measured by how committed they are with their public service to provide opportunities that the less privileged, yet globally-competitive ones could afford. Coca-Cola, Hewlett-Packard Enterprise, IKEA, and Unilever are some of the employers that believe they should pay on behalf of their hired workers.

Anel Grup, a global Mechanical Electrical Plumbing company in the Middle East and Renaissance Heavy Industries, the construction branch of Ronesans Holdings – is a leading construction, oil, gas and power generation company in the Commonwealth of Independent States also promote the fact that shouldering the service fee of workers is a long-term investment and an element for their successes.

The report from IHRB reflected that zero placement fee works effectively for starting companies but for the case of Rensol Recruitment, this has been the aromatic scent, the word of mouth, and the integrity that makes these small companies, the fastest-growing in the industry.

 

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.