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.
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.