Pressganged by the maritime headhunters

Shipping will not be immune to the growing practice of using recruitment consultants in locating suitable job candidates, writes Deep Singh

Shipping is shaping for a closer partnership with the recruitment industry, as consultancies look to bring the disciplines that have been successful in the wider business into the maritime industry. So what can they deliver that makes using them as recruitment partners worthwhile?

Like any service provider, recruitment companies come in many forms. There are hundreds of generic agencies that try to cover large swathes of the market with limited resources. Their inability to serve their target market gives rise to articles in the press accusing this sort of agent of using unsavoury business practices. In a survey of FTSE 100 companies, recruitment consultancies were described as being "pushy", "pestering" and "dishonest".

Yet this perception contrasts starkly with the fact that most of those companies quoted use recruitment consulting firms to find their staff, and a huge growth in consulting has taken place over the last decade. In the last 5 years, employers in the U.S. have more than doubled their spending on executive recruiters - from $3.5billion in 1993 to an estimated $7.9billion in 1999. Bruce Hatz, corporate staffing manager at Hewlett-Packard, believes "The use of executive recruiters will undoubtedly grow. With the jobless rate at its lowest level in 30 years, finding talent for companies (is) going to get much more difficult in the next decade." Shipping will not be immune to this.

The need to have a structured approach to recruitment has been recognised lately by the "Big 4" management consulting companies who have branched out into executive search and selection. This foray into provision of niche recruitment solutions is starting to creep into the shipping industry. Human resource departments are noting a sea change in the benefits to be had by running with a specialist-consulting firm on a partnership basis. Using professionals from within the shipping industry to source and filter ideal candidates saves time and energy. It also provides a comfort zone where the Client can make judgement on the candidates unburdened by the process until s/he is ready to interview the chosen few.

This process is further enhanced if the recruitment agency has invested in the appropriate recruitment software and back office infrastructure. This heavy investment creates a win-win-win situation for Clients, Candidates and the recruitment company since the right Candidate will be sent to the right Client every time. The shortlist for vacancies should be shorter and higher quality as a result of the sophistication of the software, tempered with the industry insider knowledge of the specialist recruiter.

A huge amount of work that goes into sourcing the right Candidate for each role. For a company looking for the ideal employee, they should ask their recruitment agency what approach they will take to source the elusive ideal Candidate. The best agencies will have a multi-pronged approach which should actively use the internet as a tool (not just the recruitment consultants own website but other recruitment sites as well - 45% of Fortune Global 500 firms actively use the net for recruitment - Source: Fortune Magazine, July 5, 1999), highly targeted trade press adverts and of course the quality of the personal network of the recruitment consultant company. One of the major drawbacks for a recruitment company is cashflow. Most of the advertising is placed without recompense from the Client. This is not a problem if a suitable Candidate is found, but clearly fast turnaround of invoices is a critical success factor for specialist recruitment companies.

We, the Directors of Headway, looked at the issues that underpin relationships between clients and consultants, prior to launching the company in February this year. We decided that we would adopt a more bespoke approach to each Client's individual needs, for a variety of good business reasons. It makes eminent sense in an industry like shipping where the personal touch is crucial to good business practice. Additionally, we realised that in shipping you cannot adopt the broad-brush approach that is evident in other industries. We have concentrated on the areas in the maritime sector that we have direct experience in. This approach ensures that we are able to offer a service to Clients that they can be sure is based on ability and not luck. The best endorsement for this operating method is the fact that in the short time since our launch some of the best-known names in the shipping industry are currently relying on us for their recruitment solutions.

However, despite the best will in the world it is not possible for all client / consultant relationships to go smoothly all of the time. Whilst recruitment consultancies are inherently flexible in trying to adjust to the demands of a Client, Clients themselves need to consider their own role. They should have a clear idea of the type of person they are looking for in terms of qualifications and experience and have a realistic understanding of the remuneration and benefits they are prepared to offer the prospective employee. In addition, Clients need to be sure that they really are looking for staff when they approach a recruitment consultancy. This might appear a surprising point to make, but companies that, after their initial brief, have shown no interest in following through their recruitment requirements have approached us. Also, a clear line of communication and command needs to be established between the Client and consultant so all are clear as to the final decision- maker. Again, this may appear to be obvious but we had a recent case whereby a director of a well-known company approached us for a specialist vacancy. We organised a list of half a dozen quality candidates but then discovered no clear lines of command existed within the client company for this to proceed further.

So what is the solution? Commitment seems to be the key from both sides. Clients need to be committed to the idea of using a recruitment consultancy and that includes paying the agreed fees. Agencies need to provide a more complete service, which includes post-placement and enter into a tighter relationship with the Client. This in practice means they become an extension of that organisation and its interface with its would-be-employees. For example, we are on the verge of offering psychometric testing as an additional option to our clients. They are then in a better position to assess the suitability of the candidate and also in the best position to offer the candidate a real insight into the ethos of the company they may be joining.

And the thing to remember is whatever way you to look at it, it is equally in the interest of all parties in the relationship - Client / Consultant / Candidate - to ensure that the right Candidates are placed in the right job. This might require some pushing and pestering but needs no dishonesty because many of our Clients are friends or shipping colleagues we have known over many years. Finally, shipping is a big, little business in which those who do not work ethically are soon exposed. That guarantees commitment, openness and quality from all and is the basis for shared success.

ENDS

Deep Singh is a Director of Headway Recruitment Limited, a premium maritime recruitment service based in London.

Headway currently focuses and specialises in the following major areas of the industry: Bulk and Liner Shipping; Ship and Commodity Broking; Maritime Law; Maritime Insurance and P & I; Offshore and Transport-related I.T

Headway's other directors are Paul Smith, Jonathan Bygrave, and Jonathan Moore, who together have over five decades of experience of the shipping industry.