20 October 2016

Highly productive workers take more breaks (and other surprises)

I recently finished reading, and enjoying greatly, the memoir Shoe Dog, of Phil Knight, co-founder and CEO of Nike (thanks for the recommendation, Peter).

I am sure you won't be surprised to know that Knight worked incredibly hard, along with many other original and early-days Nike employees, to build a profitable business. Knight put in many long days, weeks, months and years in order to help Nike firstly survive then thrive.

This is a familiar story contained in the memoirs and speeches of entrepreneurs the world over; the long hours necessary to make their dream come true.

Although these hours are the necessary ingredient for entrepreneurs, what about normal employees?  When it's not your business yet you still care about doing a  good job and making a contribution to the overall company's success; where's the balance between working hard enough to deliver great results yet not burn yourself, or your direct reports, out?

This is a subject I have become increasingly interested in as I review my own productivity, both when I was an employee (as a recruiter) and now that I am running my own business (mostly from my home office, 30 minutes' drive from my sole employee, who works from her home).

The results of a recent company trail of a six hour work day in Sweden have been so conclusive that the rest of the country's employers appear to be taking note;

As The Independent reported earlier this year:

The Svartedalens retirement home in Gothenburg, Sweden's second largest city, conducted an experiment to determine whether cutting hours improved patient care and boosted employees' morale.

Nurses who worked six-hour days for the past year were found to be 20 per cent happier and had more energy at work and in their spare time. The 68 nurses also took half as much sick time as those in the control group and were able to do 64 per cent more activities with elderly residents.

They were also 2.8 times less likely to take any time off work in a two-week period

A Toyota centre in Gothenburg implemented shorter working hours over a decade ago, with the company reporting happier staff, a lower turnover rate and an increase in profits.

How did Svartedalens ensure that the six hours each work spent at work was productive? Among other things they ...
  • Banned staff from any form of social media during work hours
  • Reduced the number of meetings to the absolute minimum
Unfortunately it appears that in Australia we appear to be heading in the other direction with a report from November 2014 noting that on average Australian employees are undertaking approximately six hours per week of unpaid overtime.

Professional services firm EY have taken a substantial interest in this topic by publishing The EY Australian Productivity Pulse.

Here's what EY reported:

The workers within the Australian workforce who are highly productive (23%) have much in common. These are people whose skills are well aligned to their jobs, work in a supportive culture and are valued for their contribution. Money is not their main motivating factor. They rate satisfaction with the work they do and work/life balance as more important than salary or bonuses.

Contrary to popular belief, the actual time spent at work has little impact on productivity.

The difference is that highly productive workers spend less time travelling to work, take longer breaks, and more time on leisure and recreation. They also take less than five days of sick leave per year.

This aligns with my own experience as a recruiter. When I worked in Sydney I commuted by ferry. My aim was to catch the 6pm ferry each night as there was a 30 minute wait until the next ferry. This meant leaving the office by 5.45pm as it took me 10-15 minutes to walk to Circular Quay.

By arriving home by 6.45pm I had time to get to my local pool for a swim, have dinner and undertake some other form of relaxation before going to sleep.

I also was an active member of a Toastmasters Club which met fortnightly at 6.15pm on a Tuesday. As a regular participant in speech competitions I was often at another Toastmasters event or meeting each week.

As a keen SCUBA diver I regularly went diving on a weekend, often going away to my favourite location, Jervis Bay, for a couple of nights on a live-aboard.

I was able to be highly productivity at work by not working past 6pm and having a full life of sport and recreation outside of work. Both of these things kept me physically and mentally fit and fresh.

The recruitment industry is one with a high turnover and burn-out rate. One of the most important things owners and leaders can do is focus on productivity rather than hours in the office.

Maybe a six hour work day for recruiters is an attainable goal ...... by 2050.

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15 October 2016

A recruitment agency for beautiful people: focused or flawed?

If you are a regular social media user you may have noticed that London-based recruitment agency Matching Models, has come under fire for advertising for a personal assistant with "a classic look, brown long hair with b-c cup".
Discussing the controversial ad, Matching Group owner, Nathalie Jansen said: "The client who wants the specific cup size is an older gentleman - he has a specific outfit he designed with Christian Dior. He wants a "Jackie O" look. And he wants a lady with a smaller cup size to fit into the outfit."
Of course, you can’t blame the agency; I mean it’s a daunting proposition for the Matching Models consultant to face the wrath of an unhappy upper class Englishman who discovers his new PA can’t fit into her specifically-designed Jackie O outfit.
The Matching Models home page makes it quite clear who it caters for:

Matching Models is the first talent agency specialising in providing companies and private clients with the ideal candidates, both skilled and attractive.

We match the right person for short-term assignments and permanent roles such as PAs, hospitality staff, receptionists, flight attendants, as well as sales and promotional staff worldwide.

It is almost politically incorrect to request someone to work for you that is both attractive as well as professionally equipped with the right set of skills. However, our company understands the importance of having the right people representing your company, because after all, first impressions count!
Underneath are the logos of clients, who include Coca-Cola, Heineken, Renault, Louis Vuitton and MTV, among others.
Ms Jansen’s LinkedIn profile states:
My name is Nathalie and I was born in Belgium. I am of Dutch and Ukrainian descent. Having grown up under unique set of circumstances in my childhood, life has given me with a thirst for knowledge and a desire to travel across the world to try and make something of myself.

It wasn’t easy being a single mom to find a job without any formal education and on top of that have no family support in a foreign country. But, I persevered and set out to become an entrepreneur at the young age of only 20.
Ms Jansen’s LinkedIn profile also states she has (varying) proficiency in seven languages (English, Dutch, French, Hebrew, Flemmish, Afrikaans and German, since you asked).
Matching Models commenced business in 2007 and now The Matching Group states it conducts business in 43 countries by providing “services in events, media, PR, marketing and employment”.
Clearly Ms Jansen runs a very successful business and has proven herself to be an astute and highly successful entrepreneur. And, I am sure you won’t be surprised to learn, she is also very attractive.  
So what to make of the recent publicity about the job advert for the Jackie O dress-alike (and the recruitment ethos of the company publishing such an ad)?
The BBC’s report noted:
“Employment lawyer James Lynas, partner at Winckworth Sherwood, said the advert was "clearly unlawful", adding anyone could complain to the Equality and Human Rights Commission, who have powers to intervene.”
The Independent (UK) reported:
The Equality and Human Rights Commission (EHRC) called the firm’s practices "appalling, unlawful and demeaning to women" and the EHRC Chief Executive Rebecca Hilsenrath said it would be writing to Matching Models "asking for them to clarify their hiring practices immediately".
New Zealand’s #1 recruitment blogger, Jonathan Rice, offered his view last Friday.
I have written in detail about hiring on appearance in a previous blog.
Ms Jansen appears to be reveling in the publicity with her company’s Facebook page republishing articles on the controversy.
On Monday they clearly couldn’t help themselves have a little crow about the direct business impact of all the publicity.

Even though Ms Jansen is clearly risking the direct wrath of the (UK) law with her agency’s unapologetic discriminatory approach to hiring she ploughs straight ahead. Clearly she believes that any action taken against her company will be trifling compared to the upside she gains from the clear, and well-publicised, focus of her business.

I’d love to know more about Ms Jansen’s business but I suspect that if I put in a request for an interview, her ‘people’ would take one look at my LinkedIn photo and send me a very polite rejection.

I don’t know of any Australia or New Zealand agencies taking such an unabashed approach to ‘politically incorrect’ hiring but if you know of any please drop me a line or leave details in the comments section of the blog.

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06 October 2016

You won't believe the disruption the legal recruitment sector is facing!

Two years ago I posted a blog under the title Soft free kicks in the media continue for ‘internet recruitment entrepreneurs’ in which I bemoaned the incredibly soft journalism being offered up by the ‘broadsheet’ media with respect to the reporting of supposed technology-based recruitment disruptors.
Last week they were back to their old habits when AFR journalist; Misa Han, published a story on the latest shiny new thing (Route 1) in the world of legal recruitment. I know how excited you will be to hear what it is. I am sure every legal recruiter will be close to wetting their pants about this enormous advancement in legal recruitment that’s on the verge of sending their recruitment career to the wall.
Wait for it……..
Wait for it……..
It’s a ……..
It’s a job board!
Aren’t you terrified?
It’s not just any job board; it’s an app!
Wow, and get this piece of disruption; it’s an app that shows you jobs for which you are qualified because you enter your location, years of experience and specific area of expertise. Amazing, hey?
Golly, gosh, whatever will these ‘recruitment disruptors’ come up with next? I don’t know about you but this app sounds, like, a real bad boy.
And what does this bad boy do for lawyers and legal firms that is going to cause such massive ‘disruption’?
Well, according to Route 1 founder, Paul Simos, as reported by Misa Han in her AFR puff piece:   
"It's for busy lawyers who have got a lot on their plate," Mr Simos said, adding that the app would allow employers to bypass the traditional legal recruitment process, whereby recruiters screened and interviewed candidates before they introduced them.

Route1 streamlines the process for candidates by allowing them to apply for jobs directly, also bypassing the recruitment interview.
Aren’t they annoying; those pesky interviews where a recruiter has to make an accurate assessment of your skills and motivation to enable them to provide a suitable job recommendation to you and, then, an introduction to a law firm on your behalf?
Firms must be really frustrated that agency recruitment consultants feel the need to actually interview a candidate before recommending them. How the hell does that help anyone? It’s baffling, I tell you, simply baffling.
Let’s disrupt the legal recruitment industry by cutting out recruiter interviews; now why the hell didn’t I think of that? 
The AFR piece goes on:
Mr Simos said the app would offer a broad cross-section of lawyers, compared to traditional recruiters who only have a limited pool because they relied on their professional networks for candidate searching.
"Our network is everyone who downloads the app, so it should help law firms find better-qualified candidates more quickly," he said.
Wow, that’s just, like, amazing!
I mean agency recruiters proactively searching the market for the best candidates; versus an app that sends job descriptions on request (as long as they have downloaded the app, of course). I am sure all legal recruiters are searching for new jobs right now because they are so demoralised by this threat to their livelihood.   
Well, I don’t know about you good folks but I‘ve had about as much disruption in our industry as I can cope with (for this week, at least).
For starters I’m going to avoid the AFR from now on; their cutting edge stories about recruitment industry disruptors are just too demoralising for me.
And once I’ve talked to the owners of the major legal recruitment agencies I’ll let you know when, and where, the wake for the legal recruitment sector will be held.
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30 September 2016

Vale Marc Garside

Mark, Skye and WillowI was greatly saddened to hear of Marc Garside’s passing this week.
Although originally from the UK, the majority of Marc’s recruitment career was spent in Australia. Marc had leadership roles at Robert Walters, Recruitment Solutions and Chandler Macleod. He also established his own recruitment agency in the early 2000s and, more recently, established an online visa consultancy business.
In 2009 Marc was diagnosed with advanced oesophageal cancer and after treatment it was believed he had a good chance of beating the disease long term.
Earlier this year Marc and his family received the shocking news that not only had the cancer returned, it had spread to his pancreas and chest. The two tumours were unable to be removed and palliative chemotherapy was undertaken in an attempt to prevent further spread.
It was hoped that Marc may have had four or five more years more to live. A big fundraiser was held at the end of April to assist in the massive financial investment needed to have Marc treated with advanced new cancer treatments in Germany. Sadly Marc’s health rapidly declined and, as a result, he was unable to undertake all of the treatment.
Marc passed away last Tuesday, 20 September 2016 in the loving company of is wife of ten years, Skye and his 8 year old daughter, Willow.
A remembrance service was held at Tamarama Beach earlier this week. 
I only knew Marc briefly but he struck me as a passionate, optimistic and committed person who would be excellent company.
RIP Marc Garside; the Australian recruitment community remembers you and recognises your skill, character and commitment. We grieve with your wife and daughter and we want them to know that your fine contribution to our industry lives on through the impact you had on your employers, colleagues and employees.

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23 September 2016

At last, reference checking gets serious

Earlier this week the Australian Bankers’ Association (ABA) released its Reference Checking & Information Sharing Protocol stating “To help banks employ only competent and ethical financial advisers, the banking industry has today announced a new, improved way of hiring financial advisers”.
ABA Executive Director – Retail Policy; Diane Tate was quoted in the accompanying press release:

“… the banking industry has developed a protocol to make it easier to check how financial advisers have performed in previous jobs.

“This will better identify financial advisers who have not met the industry’s minimum legal and ethical standards, and help employers make more informed recruitment decisions,” she said.
The protocol sets minimum standards for checking references and sharing information, through a series of standardised questions and record keeping practices.”

The protocol was developed with input from regulators and other stakeholders. Subscribing licensees will need to make changes to their recruitment practices to comply with the protocol by 1 March 2017. AMP, ANZ, Westpac, Macquarie, Bendigo and Adelaide Bank, CBA, NAB and Suncorp, together representing 38 per cent of the financial advice market in Australia, have signed up to the protocol.  

Having read the twelve page protocol my conclusion is that it’s a heartening development in the importance of having a rigourous and consistent process in place for the reference checking of potential employees. The ABA have been compelled to act after recent scandals that have badly dented the credibility of both financial planners and the Australian financial planning sector.
Recruiting financial advisers is a tough gig (my search on Seek for Financial Advisor, $60k-$200k, all of Melbourne, generated 243 results). It’s very hard to recruit and retain decent ones.
Therefore whenever a financial advisor resigns or is fired, then starts applying for other jobs, they have little trouble obtaining interviews and, subsequently, offers of employment. As most recruitment processes call for reference checks to be done as the final step before an offer is made, there is a significant likelihood that the hiring manager is relieved to finally be at the end of an, almost always, long and frustrating process and, therefore, already emotionally committed to the candidate. This level of emotional commitment is likely to lead to an offer of employment almost regardless of what happens at the reference check stage.
This ‘relieved’ hiring manager, about to hire an ‘experienced’ financial advisor, most likely does one of the following: 
  1. Doesn’t bother conducting any reference checks (believing both what the candidate has told them and that they are a ‘good judge of people’).
  2. Intends to conduct reference checks but the referee (mostly, with good reason), doesn’t return their call(s) or email(s), consequently the reference check is never undertaken.
  3. Conducts reference checks with a person/people nominated by the candidate who is/are not relevant referee(s) (eg a colleague) or who are in not in a position to provide the depth of information that the ABA is clearly outlining in the Reference Checking and Information Sharing Protocol.
  4. Conducts a reference check with the right person but without undertaking the necessary preparation. Consequently few, if any, of the necessary questions to validate the person’s ethics or capabilities are asked. Without these questions very few referees will volunteer damning information that is likely to prevent the ex-employee from obtaining an offer of employment.
The predictable outcome of any of these four scenarios is that the candidate is hired; they deliver poor outcomes for their new employer; are fired or resign and the cycle starts all over again.
A recent example of the predictability of this pattern in any skills short market is the jailing of a payroll officer who stole $4 million from her employer, Visy, over a seven year period, having been employed by Visy shortly after being released from jail for (yes, you guessed it) stealing from two previous employers.
The rigour in the ABA protocol is to be found on pages 8 and 9 where the template reference check form lists a number of very specific, evidence-seeking questions to ascertain the facts of the financial advisor’s performance and conduct.
Overall I believe the ABA initiative is a welcome one. The reality is that all industry associations would be well advised to do something similar for their members as in my experience most reference checking, regardless of industry, is of poor quality and of little value to the prospective employer.
I’ll follow the outcome of the ABA Reference Checking & Information Sharing Protocol initiative with a great deal of interest over the next few years. Of particular interest is whether its implementation prompts other industry or professional associations to undertake something similar.
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16 September 2016

The best leaders do less, not more

Successful recruiters that consistently deliver high numbers do so because they are constantly in action. Every minute of every day of every week of every month is an opportunity to make more placements as quickly as possible.

To work in the same office as Graham Whelan or Andrew Marty was to witness an incredible level of personal productivity on a daily basis.

Once a recruiter reaches a certain level of success there is likely to be an opportunity to take a leadership role. Most recruiters accept this opportunity.

Then the real challenge begins. I don't just mean the challenge of being responsible for the development and results of other people, I mean the challenge of having to rewire your brain to truly get that your job now is to do less, not more.

To do less, not more, at first utterance sounds ridiculous. Most recruitment leaders reading this statement would be thinking "You have to be kidding! I still have a billing responsibility AND I have people responsibility. That's got to mean more work."

However the research on leadership, and the actions of some of the world's most successful companies, is unequivocal.

In July this year, Google, who are fanatical about using data to understand and perpetuate high performance in their business, were reported as follows:

The two fundamental things they found which drive the performance of their people include:
  • Ensuring goals are clearly written down.
  • Ensuring there are frequent conversations happening between the manager and the employee.

Early last month, GE, the benchmark for twentieth century corporate leadership development, announced that they were scrapping annual performance appraisals and replacing them with "a new system of feedback and coaching" that "will require managers to communicate better and more often with their staff and to act as coaches and facilitators."

At the recent RCSA International Conference I presented the CEB research on sales manager effectiveness that concluded that the two most important things that a sales manager can do with her time (in the context of recruitment) is to provide skills coaching to each team member and to work with each team member to ‘unstick' stuck jobs.

What does all of this tell us?

The most effective leaders prioritise spending time with each of their team members ahead of everything else. This time could be spent coaching (ie observing an interview or a prospect visit) or having a coffee with their team member or having a formal one-on-one.

All of these activities require something that many recruitment leaders find very difficult to do: allocate time for this type of interaction, be still, ask questions (resisting the temptation to tell) and just listen, in other words not doing very much but having a very large impact on that team member. Why? Because nothing demonstrates to a team member that their leader cares more than the time their leader spends with just them.

The addiction that recruiters-turned-leaders have to immediate results means that the investment in spending time with each team member, each day and each week, seems to generate little immediate or tangible return. Which in the short run, might be true but the real benefits accrue over the longer term as the time invested in each team member is returned via each team member's higher level of skill, greater commitment, higher performance and longer tenure.

The culture in most recruitment agencies is, typically:
  1. The leader spends the most time with the consultant who is performing the worst and the least time with the consultant who is performing the best. This creates the, unintended, message that any time a leader spends with a consultant signifies a problem.
  2. The leader should be billing or doing other (immediately) productive things rather than ‘waste time' or ‘distract' consultants by spending time with them. 
Smart companies know better.

The single biggest difference in leadership behavior between the High Performing Workplaces and the Low Performing Workplaces was that leaders in HPWs spend more time and effort managing their people than leaders in LPWs (29.3% higher).

Source: The Society for Knowledge Economics (from research involved interviewing 5,661 employees from 77 Australian organisations in order to understand what separated high performing workplaces from low performing workplaces (January 2011).

The single biggest obstacle to recruitment agencies adopting this leadership behavior is the core instinct of recruitment agency leaders is that they should be ‘doing' lots of things.

Leaders: do less, but have more impact where it really matters.

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08 September 2016

CareerOne's jump to our side of the recruitment industry: bad news or not?

"We’re not a job board anymore”: CareerOne
CareerOne has abandoned its job board in favour of a "skills marketplace" …….. the company is now actively working to change perceptions about its business.
ShortList, 11 March 2014
CareerOne strategy “Flipping 180 degrees”
CareerOne is refocusing on its core job board platform as part of a strategy and website overhaul, with renewed hopes it can rival SEEK's dominance.
ShortList, 7 July 2015
CareerOne launches “full recruitment service”
CareerOne has launched a new offering that it says will provide a full recruitment service for the same cost as advertising a job online.
ShortList, 3 August 2016
CareerOne on recruiter hiring drive
CareerOne is currently advertising for recruiters for its new service, offering a 30% commission rate for the first 100 people accepted as a "recruitment partner".
Its advertisements say the recruiters will be independent contractors, and it is appealing to seasoned recruiters, along with graduates, parents returning to the workforce, and mature-age workers with great networks.
ShortList, 31 August 2016
Indeed forays into full recruitment
Global job board Indeed is testing the waters with a full recruitment service.
Indeed Hire is a pilot project where employers can effectively outsource their recruitment to the job ad giant and bypass agencies…
ShortList, 2 September 2016
One thing about recruitment; it’s never boring. Nothing stays the same for very long.
The past month has seen the announcement of CareerOne (majority owned by Acquire Learning Ltd) moving from job board to recruitment agency (CareerOne Recruit) and Indeed (owned by Recruit Holdings, the fifth largest recruitment agency in the world, by revenue) on that same path in the US.
No doubt the executives of both CareerOne and Indeed have thought carefully about the change in their respective business models that both companies are undertaking and the impact that this change will have on their traditional core constituency, recruitment agencies.
I won’t make any comment on Indeed Hire until there is an announcement about its intentions for the Australian market. For the time being I’ll focus on CareerOne.
Recruit2Retail founder and director Stephen Moir has already made his opinion clearly known by sending CareerOne a terse email, after one of his referrals conflicted with a CareerOne referral of the same candidate to a mutual client:
This industry is already competitive enough, without having to compete with a job board, a job board that mind you, I pay a monthly fee to. 
I am happy to be told I am wrong, but CareerOne needs to make a decision, are you a job board or are you a recruitment agency?  The saying "Don't shit where you eat" comes to mind."
The CareerOne commercial model of a $3000 placement fee, payable as 12 monthly instalments of $250, minimum two placements, or one-off $4k placement fee, (you can view the CareerOne Recruit terms here) can only be sustainable  on a low cost base and high volume.
The low cost aspect is the candidate sourcing and screening service to be run out of Manila. The volume will come from sectors with a large volume of roles (hospitality, retail, health care would be the obvious ones) identified and pursued by a locally based sales force; who are licensees of the CareeOne product (much like the traditional insurance sales model of independent business owners being exclusive sales representatives of a specific insurance company). Whether this means we will be seeing CareerOne Recruit ads on Seek or LinkedIn remains to be seen.
CareerOne will undertake all the invoicing, remitting the agreed commission back to the licensee.
When I met Dorian Van Zyl, CareerOne’s recently appointed Head of Recruitment Services, it was clear that the goals were lofty. Van Zyl is aiming for CareeOne Recruitment Services to reach 200 employees by the end of the next financial year, only 22 months away and to break even before then. A road show is currently underway along the Australian east coast to kick start the company’s recruitment drive. Achievement of the growth target would, to my knowledge, represent the fastest growth of a recruitment agency, from scratch, in the history of the Australian recruitment industry.
Van Zyl wants CareerOne to deliver a world class recruitment service for the CareerOne clients.
The challenge will be doing this without a wholesale departure of their recruitment agency clients, sufficiently annoyed by CareerOne’s play for ‘their clients’, to withdraw their custom (as Stephen Moir has done).
What does this all mean for the traditional recruitment agency?
I choose to look at it through the prism of Treacy and Wiersema’s three value disciplines (modifications of Michael Porter’s Generic Strategies, 1980) that create customer value and provide competitive advantage.
These three value disciplines are: 
  1. Operational excellence (eg McDonald’s)
  2. Product leadership (eg Apple)
  3. Customer intimacy (eg Market Life, my local fruit & veg retailer)
CareerOne have chosen Operational Excellence to be their competitive advantage. The agencies likely to be significantly impacted will be those agencies that compete in that same ‘Operational Excellence’ space (ie the transactional recruitment market).
Hays are clearly the current market leader in the recruitment ‘Operational Excellence’ category in Australia. Given the Hays dominance in the mid-market category (say $60k-$120k annual salary), you would think the obvious path for CareerOne to take would be to aggressively target the under $60k SME market where they would be bumping up against the likes of Adecco, Manpower, Workpac, DFP Recruitment, Programmed/Skilled and parts of the Randstad and Chandler Macleod businesses. There’s a much larger volume in this segment of the market, compared to the mid-market, but the competitors I have named are well-established and formidable , let alone the many locally-owned regional or suburban specialists also operating in this segment of the market.
It’s pretty easy to see where traditional agencies will be vulnerable to the CareerOne offering – the localised writing and posting of job ads followed by the manual assessing and screening of both ad responses and database/online search results. This process is currently high cost and, mostly, inefficient. Continual improvement in this area, using both technology and human skill will be critical as margins continue to be under strong downward pressure from clients and competitors.
Any agency who genuinely focuses on Customer Intimacy as their value driver (as loosely identified through having an agency having large majority of exclusive and retained work at above-market fees and margins) will have little to be concerned about by CareerOne Recruit, they simply aren’t competing for the same clients.
The Australian recruitment industry has grown in size and relevance over the past sixty years or so because of the entrepreneurial spirit of the many thousands of recruitment agency owners who have provided a service to their respective clients and candidates.
This has been the case, regardless of economic cycles, government regulation, overseas competitors and, now, recruitment vendors-turned-recruitment-agency.
The next year or so will be another fascinating period in the evolution of the Australian recruitment industry.
Competition; bring it on.

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