Is the death of the Preferred Supplier List in recruitment closer than we think?
Time and time again we hear the simple phrase “PSL”, now there is nothing wrong with having a preferred supplier list to help you with your recruiting needs, however if it is your sole source of recruiting the talent required to grow your business then it is time to open your eyes and smell the fresh air because things are about to get rough for you!
Let’s put things into perspective. Imagine you were the owner of a large commercial fishing business and you hired the best fisherman that pulled in fish upon fish until one day the lake you were fishing in dried up and you had no where else to go, what happens?
BOOM business fails and off you go!
Many International organisations rely on their preferred supplier list to deliver the best talent to help them grow their business, which is great, but with that said they are open to other sources to ensure that they recruit the best candidates. With a large portion of agencies on preferred supplier lists fishing in the same pond time and time again there comes a point when the candidates they are delivering are simply not good enough and the market becomes saturated! When this happens, many organisations will turn to other forms of recruitment such as recruitment market places – with this they tend to save both time and money without hindering candidate quality.
As a recruitment marketplace we have seen a huge shift in the way companies are carrying out their recruitment process – no longer do they believe a strict PSL with an annual review should be their sole provider of recruiting activities.
Why do companies love recruitment marketplaces?
Recruitment marketplaces are rapidly over taking the preferred supplier list approach simply due to the following reasons:
1. Ease of use:
The beauty of a recruitment market place such as ourselves is that we do all the hard work for you, your job post is sent to our vetted specialist recruitment agencies whom have an invested interested in finding the right candidate for your role.
2. Reduced recruitment fees:
As we deliver your live job vacancy straight to the specialist agencies they can afford to accept a lower recruitment fee as they are not having to spend hour upon hour searching and cold calling for their business.
3. Saving time:
You have a job to fill and we have the resource at hand to ensure that you get only the best candidates – as we have the network of agencies whom receive your job role as it is published we can ensure that we deliver the 3 best recruitment agencies within 3 days.
4. Companies are not isolated to a single recruitment option:
With a preferred supplier list, organisations are often tied into contracts which limits their candidate reach as most agencies tend to source their candidates form the same pool of talent time and time again which can quickly become stale.
In conclusion as a recruitment marketplace we are not insinuating that a preferred supplier list is going to destroy your recruitment needs, however we strongly advise that you should not have to rely solely on your PSL. In fact, our suggested solution is to have a PSL running in parallel with a recruitment marketplace that can be called on at any time.