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Words of Whizdom

Considerations For Contractors Choosing A Recruitment Company

Posted on 22nd March 2019 by John McCluskey


Well, this is a question that comes up a lot, and everyone has a different view of what makes a good Recruitment Company and why choose one over another. I am sure if you ask any recruiter who is the best, they will respond with the obvious answer they are.

Depending on what people are evaluating a Recruiter on, this may have some truth, but it does not mean that recruiter is best you, so you should always do your own due-diligence when making such an important decision.

Many candidates come to Recruiters and simply want to base their choice on lowest margin/cost the Recruiter will do. Now the individual maybe gets a few extra dollars initially and not bothered by the service but what about the ongoing care, management, future extensions, wage increases and future career management. What people need to consider is when you are choosing a Recruiter you are choosing a partner to assist and help you manage not only your current role but ideally a career. A good recruiter will want to build a long-term relationship with you, so they get to know you and be in a position to facilitate future career changes through either another contract or permanent role. Having a healthy relationship with a good recruiter will allow them to understand what is important to you in a role and be more accommodating and targeted to presenting contractors for roles and environments that are in tune with contractor’s DNA.

Some of the questions I would be considering when making such an important career choice in choosing a Recruiter are listed below.

  1. If margins/commissions were equalized across Recruiters who would you choose (based on Service and Relationship)
  1. Would I recommend this Recruiter to friends and family for no financial gain?
  1. How will this Recruiter represent you to a client, does he have a good relationship with the client, sometimes this is worth asking Recruiter clients for validations or at least other contractors that worked for the recruiter if they would recommend them.
  1. See if the Recruitment organization has high internal staff turnover, this can mean poor management or disengaged employees that might be looking to move on, and not be there to assist you down the track.
  1. Read any contracts prior to making a decision as you won’t be able to get changes once you sign. Some recruiters will have ongoing employment restrictions in their contracts that might affect future work choices.
  1. How and when do they pay if you are contracting? If they only pay when they get paid by the client, the recruiter might be either be just establishing themselves, cashflow poor or struggling financially.
  1. How long have they been around, what clients do they have, do they have the role direct, or acting as an agent?
  1. How many other companies potentially have this role, if it is many you need to be aware that the competition for the role could be high and success low, and maybe effort is best placed elsewhere?
  1. Is the Recruiter a member of an Industry body such as APSCo Australia, RCSA or others, so they are bound by a Code of Conduct and Ethics. If not why not?
  1. Always ask what is covered in Recruiters fees/margins, so you know if there are any add-on costs as many recruiters run a different model. For instances Workers Comp should be covered by the recruiter, is this extra or included.
  1. Many states require Recruitment and Labour hire companies to be registered and licensed in that state, verify this as it could mean having an invalid contract or engagement.
  1. There are 3 main options a contractor can be engaged through a recruiter, and each has its own pros and cons, this is a blog in itself but, I have outlined them below, and more information is available on our website or by contacting one of our Career Account Managers. There are reasons for choosing each, and the recruiter should provide you with the flexibility for the option that is best for you.

1. Directly – (Simplicity) Paid directly by the Recruiter maybe a small additional charge

2. Payroll Company – (Advanced Packaging Options) – Usually more expensive than using the Recruiter direct (2-3% typically)

3. Own PTY Company – (Very Complex) Time consuming and expensive and high level of compliance required.

The recruiter is an extension of your career, and they are representing you to the client and often managing your financials. There are many great Recruiters out there that will have your best interests at heart; others may simply be looking at you as a number for their own financial gain and targets. Choose wisely, and I hope this helps in the decision in choosing your partner for employment.

More information is available on our website, or follow the Whizdom LinkedIn Company Page for regular updates and insights.


Written By: John McCluskey – Whizdom Recruitment

John has over 20 years in Recruitment, Current APSCo Australia Board Member, Member of RCSA

References Used: None (life experiences)

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