Should all recruiters implement more thorough PSL and ASL review processes?
Maintaining an umbrella PSL Risk aversion gone mad, or an absolute necessity for recruiters? We all know the importance of maintaining a preferred or approved supplier list, but with the volume of umbrella companies and their (in some cases) unreliability and potential financial instability, recruiters really should increase the importance on a comprehensive selection process to protect their temporary and contract workers.
There is a growing requirement for recruiters to spend more time producing detailed RFI and RFP (request for information/proposal) papers. This should also include a full financial review. A good recent example is Elan, who have just completed a rigorous review process to reduce their umbrella supplier relationships from 85 to just 15 approved Umbrella companies. Other recruiters should be looking at a similar consolidation process to protect themselves against Umbrellas that may go bump in the night!
Chris Futcher MD of Pulse comments Elans recent Umbrella Company review is one of the most meticulous and detailed weve seen recently and I think they are right to put Umbrella companies under extra pressure, to deliver important details around financial strategy and stability. The bottom line is that if an umbrella company goes under, and cant take steps to protect their payroll commitments then the impact can be widespread, including significant reputational risk and operational overhead for the recruiter. We are very proud to be one of the few umbrella companies selected by Elan as an approved supplier
Chris Futcher also said Our first priority is to deliver a reliable, flexible and quality service to both our customers and agency partners and to ensure our business model is based on sound financial planning. We understand how critical this is to both recruiters and contractors.