Is the Australian Recruitment Market more Sophisticated than the UK?

Tim Henry, Manager, Frazer Jones, Sydney

'Recruitment is recruitment' some might say, but having spent almost ten years specialising in HR recruitment both in Australia and in the UK, I would have to disagree. In my view, not only is there a vast discrepancy between the large high-street recruitment firms and the more specialist boutiques, but also amongst the hiring organisations themselves and the way they go to market when they are acquiring new talent. Interestingly, I have noticed a particular difference in the way that Australian and UK companies approach their recruitment practices.

As a 'POM' in Sydney, I would say I am as English as they come and vehemently support England in everything, particularly when it is against the Aussies! So this is certainly not some form of confession that I am switching allegiances when it comes to The Ashes! But it strikes me after almost four years recruiting in Australia that clients here in Sydney work far more collaboratively with their recruitment partners.

First of all, a far higher degree of assignments are given to consultancies on an exclusive basis here in Australia. Across the Frazer Jones Sydney office, well over half of the roles we work on are only given to us. And of the remaining roles it would be rare to find yourself in competition with more than one or two others. Furthermore, a good number of the mid-to-senior level roles we work on will be retained, with a third of the fee paid up front (the remainder only on completion). This is very different to my experiences in the UK, particularly in the London market. There, it is not uncommon to find yourself on a PSA ("preferred" supplier agreement) with four other similar businesses also specialising in HR. Reflecting back on this set up, there really was very little that made this a "preferred" relationship...

The most frustrating aspect of this arrangement is that by being one of five suppliers working on the same job, it significantly devalues the offering of the consultancy. It almost becomes a race as to who can cover candidates the quickest. Conversely, when working on a role exclusively, it allows the Consultant to actually do their job properly. You can afford the time to thoroughly search the market and speak to your network, and then present the absolute very best candidates to your client. It is a win-win for everyone. Furthermore, the fees that recruitment businesses charge here are noticeably less than in the UK. Yes, that's right - the clients here pay less money and get a more proactive/consultative service as a result. Who wouldn't want to work that way?!

Of course, we aren't simply comparing apples with apples. There are as many people working inside the M25 each day as there are living in the whole of Australia. The sheer volume of people in the UK, and therefore job vacancies, means that the two markets are never going to be able to operate in exactly the same way. That said there is no reason why there can't be some sort of middle ground. As the economy recovers, there is a real opportunity for organisations of all shapes and sizes to go back to working in true collaboration with their recruitment partners and doing it Aussie-style.