Tuesday, July 19, 2011

The Folly of Charging Placement Fees

One of the saddest realities in the Philippine Recruitment Industry is the policy of some to place the burden of the cost of the recruitment and processing on the shoulders of the candidates.   Worse than this, recruitment agencies find no problem in working with employers who are more than willing to deduct the salaries of their hired workers.   

And, the worst of the worst, are those "opportunities" where a recruitment agency not only asks for placement fee, but also when the employer charges the cost of the ticket and visa on the candidates.

This is nothing but modern day slavery.

While it is reasonable for any company to cut cost by shaving of some corners in their process, employers are wrong to think that they can get the best results by putting the burden of the recruitment and processing cost on their hired workers.  This policy is actually the root cause of many problems between the employer and employees.  (In fact, the only winner here is the recruitment agent.)

To begin with, when a foreign company plans to hire workers, they will first create a hiring plan.  A timetable and budget is prepared.  They work with their agent in Manila, and the latter in turn tries to identify the candidates they require.

The first problem an employer will encounter is the competition for talents.  I have encountered many Human Resources Managers who complain that their agent is not able to pool in the candidates they require.  It is quite obvious that if you are the candidate and you are searching for a job abroad, you will tend to gravitate to those opportunities that are presenting the best offer.  A foreign company and its partner agent in the Philippines that hold a policy of deducting the salaries of the candidates or charging them with a placement fee will logically have a harder time convincing the job seekers to apply for their vacancies.  It's also open knowledge that job seekers do not just apply at one agency, but go "shop" at different recruitment offices in Manila to find which will offer him the best package.

This again poses another problem.  Let's say a candidate signs the job offer, but then as he is being processed for his mobilization to his work site, another opportunity arises.  No doubt, the candidate will drop the application with the agency and employer, and go for the better one.

Now let's say the candidate somehow becomes convinced by the recruiter and the employer to absorb the cost of the fees, and then begins his new career abroad.  The problems do not end there.

If we take a survey of those distressed Overseas Filipino Workers (OFWs), and ask them what is the main reason they have left their employer, it will of course come to dissatisfaction.   If we analyze this dissatisfaction deeper, we will find out that all of this has been rooted to the mishandling of information.  Agencies will try their best to convince the candidates to accept a job, because this will mean money in their bank.  And so, they will try to give the candidates heaven and earth to convince him to sign the job offer. 

When reality sinks in, the employee realizes he has been had twice over: by his recruiter, and by his employer.

I always ask myself this question, what guarantee will a worker have from an employer that they will uphold a very positive employment standard given that this employer will charge the cost of the recruitment on the employee?  That is indeed a hard question to answer by employers who deduct the salaries of their hired workers.

So it all starts there: the issue on the placement fee or salary deduction.  

My best suggestion to candidates, do not go for recruitment agencies that will charge you for a single peso for the cost of the recruitment or processing.  You want less headache and heartache in your life, go with agencies that do not charge any fees, and take on opportunities with employers who will really invest the money to get your skills, talents, and experience on board. -KLP (7/19/11)


No comments:

Post a Comment