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The Boon, The Bane, and The Busy: An Overview of the “No Placement Fee” Policy

Placement Fee

According to Asianjournal’s ‘2017 Philippine Recruitment Outlook’, the recruitment industry will be experiencing a stable growth of 4% in the next five years. For that matter, new and old agencies are expected to take part in the game. As competition intensifies, there will surely be more overseas professional opportunities available for Filipinos. The challenge for trusting job seekers is to properly identify a reliable recruitment firm providing the right recruitment service, to help them find that perfect job for their great pursuit of a better life.

Employment

The Philippine Overseas Employment Administration (POEA) allows licensed recruitment agencies to collect placement fees from their candidates as payment for successfully securing them a position abroad. As per Workabroad.ph’s compiled data on recruitment fees, placements are commonly calculated to be at 1 months’ worth of the candidate’s salary. Some Manila recruitment agencies use a 50-50 payment system to lessen the burden on both the candidate and principal. While this method may seem to be the most cost-effective approach for everyone, there are still some unseen factors that need to be considered.

World-PSI states that placement fees, regardless of the job grade, can deteriorate the quality of a worker’s disposition before he even starts working for the employer. Due to the pressure brought by raising the needed amount to get the job, as well as straightaway providing for his family back home, he is immediately impacted mentally and emotionally. Another good example of an adverse effect of placement fees is the “debt trap”. From an article written by Ana P. Santos and Sofia Tomacruz of Rappler, debt trap is the usual situation OFW’s get into when they deal with placement fees. Poor Filipinos wanting to get a shot at working abroad will go to a bank or a lending company to get a loan. When their initial earnings are not enough to pay their debts on time, high-interest payments are factored in; it becomes difficult or impossible for them to repay what they borrowed. This results in the loss of employee morale leading to a subpar service for the employer; after which they’d come to a realization that they have a growing mountain of debt that even their job abroad won’t be able to compensate for. Thus, having to prematurely leave their employer.

Although taking placement fees is a common practice in the industry, there are a few that implements the reverse. Selected recruitment firms administer a more humanitarian approach in conducting their business processes by employing a “no placement fee” policy resulting in a more positive impact not only for candidates but also for the employer. A no placement fee agency forwards the would-be expenditures of the candidate to the hiring company. Although this seems to be less attractive to employers as they will shoulder all fees, it is, in fact, the opposite. If Filipino candidates can pursue their careers without paying any fees and they will not encounter any of the negative points raised above, everyone can ensure the candidate’s longevity with their employer. Retaining talented and loyal employees is an absolute win for any company.

employers

“The International Labor Organization (ILO) has named the Philippines as one of the pilot countries for its global program for promoting migrant workers’ protection, citing the country’s improving policies on ensuring safe and fair recruitment.” – Tomoko Nishimoto, ILO Regional Director for Asia and the Pacific

There have been arguments from the ILO Organization regarding ethical recruitment and the motion to scrap placement fees completely. There are also many indicators that suggest the recruitment industry should shift completely towards this policy. When that happens, it will most definitely reduce, if not completely wipe out recruitment scams in the Philippines and it will impose the goal of ethical recruitment to prioritize helping less fortunate Filipinos get better chances in life.

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Rensol Recruitment and Consulting, a POEA licensed agency, has been advocating a no placement fee policy, since its inception in 1999. Focusing on opportunities that incorporates the same vision and values and upholds ethical recruitment practices beneficial for all parties of People, Partner Agency and Principal.

For more information on how to conduct an above and beyond recruitment campaign in the Philippines, please connect with our Business Development Team at [email protected]. We will be ready to sit down with you and understand your concerns and configure a recruitment plan to ensure better success.

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.

High Employee Turnover as a Silent Construction Manpower Crisis

Human capital is one of a company’s largest asset. Today, in order to succeed and achieve operational efficiency, overseas construction companies rely heavily on reliable, productive and competent labor force. These employees play a crucial role in the success of the company. As Alfred Marshall once said, “The most valuable of all capital is invested in human beings.”

Losing an employee may not hurt your business but losing a dozen more may cause your company to stumble. Furthermore, losing a bad employee can give way to a better one, however, not all loss of employee can bring back good to your company. You may find and hire new people to work for you, but are you willing to sacrifice your company’s delay in production?

Replacing your employees can be damaging to your company. According to an article written by Heather Boushey and Sarah Jane Glynn, HR experts of Center for American Progress, replacing your employees may hurt your business’ productivity for it all results to increasing direct costs and turnover costs.

Now, despite the unpopularity as a career choice, the construction industry is one of those labor markets struggling to get along with the continuously growing demand for output. Apart from skills shortage, the ADP Workforce Vitality Index 2017 reported that one of the major but unnoticed problems that affect construction companies and contractors is the high turnover among employees. Turnover refers to the rate at which workers voluntarily leave the company. This has a negative impact most especially in a specialized industry like the construction sector.  Turnovers pose risks from losing a skilled machine operator to a top engineer.

Finding and retaining the best employees is a competitive edge in the construction industry. However, addressing turnover has been not prioritized and was deemed normal by some human resource managers. Executives should be reminded that turnover is a sign of unhappiness in the workplace. It is beyond cancerous.

In a journal entitled “Investigating Employee Turnover in the Construction Industry: A Psychological Contract Perspective” published in 2016, authors identified what predicts employee’s turnover in the construction industry. Apparently, emotional exhaustion emerged as the top reason for the younger construction workers to suffer greater levels of exhaustion and who are more likely to exit the construction site.

Other causes of turnover included; conflict with management, toxic work environment, and job dissatisfaction. This problem constitutes unprofessional management, poor compensation, insufficient recognition, or even isolated cases like discrimination in the workplace and bullying among workers.

 

The Cost of Turnover

This industry long suffered from workers who keep on looking for better working environment, salary increases, and shorter working hours. Persistently high workers turnover affects operational efficiency and morale of employees. Without efforts to keep employees, a company may find it hard to establish a lasting culture within the organization if people continuously come and go.

High turnover hurts productivity and revenue due to constant hiring and training of new employees. This greatly affects continuity of services which is vital for a company to compete.

Based on a study of the Society for Human Resource Management, the cost of losing a salaried employee can cost as much as twice as their annual salary. This is a summation of the exit and separation costs; cost of recruiting a replacement; training and onboarding costs; lost expertise; administrative costs; and cost of lost productivity. This doesn’t include all the intangible and untracked costs prior to resignation and recruitment of vacated position.

Turnover may also push other employees to follow suit and leave you crippled with impaired human resources.

 

Effective Recruitment and Employee Retention

Managing employee turnover and exerting efforts toward employee retention is not just a tough job among contractors but among construction recruitment agencies as well where the burden of attracting skilled professional starts. Retaining employees and reducing employee turnover could be managed as early in the recruitment stage.

Turnovers, which may not be an issue within the workplace, might be an issue on recruitment when we initially hire the wrong person. Successful recruitment practice in construction should not just involve finding capable and qualified workers, but also those who can fit your work environment and could stay for a longer term.

Recruiters can easily spot job hoppers by simply looking at their resumes and by checking their references. During the recruitment stage, employees who are most likely be committed is easily detectable.

As soon as they landed on the job site, employers should find time to check out to their employees to pre-diagnose any chance of turnover. Establishing a comfortable environment and an ambiance of mutual respect among supervisors and workers could also cut issues that lead to turnover.

Finding a good employee is tough, and it will be more difficult if we have to lose the ones we already got. We can no longer extinguish the bills once it gets burned. We can no longer take them back once they walked out your door.

Seasoned recruiters will always have an eye for star performers. Learn more of our best practices in talent acquisition and let us collaborate to achieve your business goals.

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 Recruitment & Consulting Bolsters its job offerings by launching the Rensol Job Site

Quezon City, Philippines, February 21, 2018 – Rensol Recruitment and Consulting, the fastest growing recruitment agency in The Philippines is happy to announce the launch of our job site for aspiring Overseas Filipino Workers – https://rensol.com/jobs/

Rensol’s Job Site has been designed to offer the ultimate user-friendly experience of overseas job hunting to filipino professionals with improved navigation settings and functionality. Created with the user experience in mind, the site includes features to help users navigate the site quickly and find what suits their credentials with ease.

Some of the tool’s special features include:

User Login – Jobseekers could sign up to freely explore the site and maximize all its helpful features.

All Jobs – Have an easy access to wide variety of jobs being offered by Rensol. Search toolbars are provided for fast search. Each item includes all the necessary information like job descriptions, country designation, number of vacancies available, status of recruitment, qualifications, and an accessible button to apply and to instantly send applicant’s resume.

Resume Submission – Aspiring candidates could craft their resume in the job site by simply filling up all the required information on the form provided. Jobseekers could also attach a soft copy of their resume for their future employer’s perusal. Rest assured all information will be treated with utmost confidentiality.

Accredited Employers/Companies – Features a gallery of all our partner agencies abroad where qualified candidates will be deployed. This also features the pool of global partners which Rensol had helped in their manpower and consultancy needs through the years.

Featured Jobs and Latest Jobs – Easy access to the most in-demand job postings and the most recent opportunities available.

With just fewer user clicks, job seekers can easily apply for the job they seem fitting. The site was also made compatible with all major browsers and leading mobile devices.

The job site has a direct link to the main website which features more of the services being offered by Rensol and rich blog contents on recruitment practices, news articles and case studies.

We are formally inviting Filipino job seekers to explore our available overseas opportunities.

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.

4 Critical Factors When Recruiting Quality Manpower in the Philippines

Whenever there is a shortage of talents in the local population, a company faces the question where to import skilled workers.  More than ever, businesses in the oil & gas, construction, engineering, healthcare, retail and other industries have looked towards the capabilities of the recruitment agencies in the Philippines as a source of quality talents to meet their staffing needs.

The challenge faced by foreign employers is to sift through the information and understand what will make a recruitment campaign successful.  Here are 4 critical factors which an employer should consider when recruiting quality manpower in the Philippines.

 

1.     Timeframe 

For a recuitment agency in the philippines, time is gold.Nothing is more critical than preparing a recruitment plan with a realistic timetable. If local recruitment will require an HR practitioner a lead time of 2-3 weeks to fill vacancies, recruiting from outside the country entails a longer timeframe.  While the speed of recruitment is important, one should remember that cutting corners will increase the risk of failure. A thorough work on processing applicants must be done by the employer and its accredited recruitment agency in the Philippines.  Sourcing candidates will be a standard of 2-3 weeks, depending on their category, companies interested to recruit from the Philippines should consider two other factors: Accreditation (Pre-recruitment) and Documentations (Post-recruitment). For the Accreditation Process, your company will be required by the Philippine government to be accredited by the Philippine Overseas Employment Administration (POEA). This alone will take from 2-4 weeks depending on the documents made available. While the Documentations procedure will take another 3-6 weeks, depending on the availability of documents from the selected candidate’s end, and the host country’s process. Overall, from the date you confirm your recruitment campaign, one should allocate around 3 months lead time when it comes to the acquisition of manpower from your recruitment agency in the Philippines. 

 

2.     Completeness of Information 

Information are needed by a recruitment agency in the philippines to go through its processes.The distance between the employer and his target talents creates a gap regarding how information is channeled for each party to make better decisions. Local recruitment gives the talent easy information with regards to the employer. In the same way, local recruitment entails employers to have more predictability regarding the quality of its applicants as the local psyche and attitudes are assessed better in the local context. This is not the case when recruiting outside the country. Both employers and the accredited recruitment agency in the Philippines should have clarity in the transfer of information so that each one can make a proper assessment of what adjustments and final decisions should be done during the recruitment campaign. This means the employer should provide all necessary information regarding the project, the company, its philosophy, and even the job description and compensation package details. The partner recruitment agency in the Philippines should also advise employers of local conditions so that the recruitment campaign can be personalized ensuring better success. Staffing solutions should always be tailored according to the employer’s standards balanced with local recruitment conditions. Remember, a candidate that is well informed is in a better position to make the right decision.

 

3.     Reliable Recruitment Vendor

Employees of a Recruitment Agency in the PhilippinesCheap doesn’t mean savings and expensive doesn’t mean quality. The primary question an employer should ask before commissioning a recruitment agency in the Philippines is “Are they a reliable recruitment vendor?”. Reliability transcends cost. While it is usually thought of as capability, in the Philippine recruitment space, it plays one major factor – reputation. The reality is there are more than 400 land-based recruitment firms in the Philippines – all of them dipping into the same finite job market, and all of them trying to attract the same candidates for opportunities. The candidates, on the other hand, have a field day in choosing which opportunity to pursue. This is where the manpower agency’s reputation is critical. An unknown agency representing a Forbes 500 company will simply raise eyebrows. Then again, an unknown employer working with an unknown representative will be an uphill struggle in attracting applicants. Candidates are more confident to pursue opportunities with those POEA-licensed agencies who have a very good track record of representing professional and global standard companies.

 

4.     Final Interview

Man and Woman from a Recruitment Agency Shaking HandsNothing works best when both employer and employee can build confidence between each other. The partner recruitment agency in the Philippines is only there to map their relationship. While in a world of interconnectivity allows us to talk and chat with someone on the opposite side of the globe, it cannot replace actual personal engagement. It is true during a personal meeting when both the employer and the employee can build confidence with each other. The biggest mistake an employer will make is to rely on the partner to make that decision on who gets hired. So as part of a recruitment plan, an employer should be ready to send a representative or a team to meet the shortlisted applicants.

For more information on how to conduct a recruitment campaign in the Philippines, please connect with our Business Development Team at solutions@rensol.com.
 We will be ready to sit down with you and understand your concerns and configure a recruitment plan to ensure better success.

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.