Digitalisation is transforming the job market extensively. While many businesses are reshaping their business model, many businesses are struggling to build an online presence for themselves. This rapid transformation has opened gateways of opportunities for various sectors. One such sector that has been growing rapidly since the past few years is the recruitment sector.
Every business, be it new or old needs talented individuals to drive the business forward. And this in turn comes as an opportunity for recruitment agencies. However, being a recruitment agency means that you’ll have to work with various businesses and suppliers as your recruitment partners like Umbrella companies, Accountancy providers, etc. This is where PSL comes in!
Here in this article, our main focus will be on ‘how you can create a PSL?’, but before we get into its details, here’s an overview of ‘what is a PSL?’
What is a PSL?
PSL stands for preferred supplier list. It is a directory of suppliers and ensures that businesses you are involved with are high-quality service providers and have an efficient and value driven recruitment model. A PSL helps agencies to filter out the unnecessary and spam emails and calls since you only deal with the ones that are on your PSL.
A preferred supplier list (PSL) will ensure that the agencies you engage with as your recruitment partners will provide a high quality, service-centric and value driven recruitment model. By operating in a smaller pool of competition for your business, these agencies will be incentivised to maintain and deliver enhanced service satisfaction for longer-term gains as your recruitment partner of choice. Recruitment agencies can also apply to be on the PSL for a company which usually works on a contractual basis. A PSL ensures that you are using only suppliers that are compliant providers.
Creating a PSL-Points to be noted:
Too many is never wise
Yes, if you are involved with too many suppliers, it may get pretty tough to manage all these suppliers since different suppliers have different working practices, different policies , different costs and so on. This will only create ineffective supplier management and may further damage your business.
Also, it is wise to review and update your PSL once in a while as it ensures effective and robust processes are in place that can help boost your overall service quality.
Compliance is the priority:
Working with compliant Umbrella companies and Accountancy is one of the main reasons you need to have a PSL since if you are in any sort working with non-compliant suppliers, then it may put your agency in risk under the Criminal Finance Act.
Before working with any supplier, make sure that they are well-aware of the industry laws and regulations and that they are fully compliant with them.
Make sure they fulfill the below criterias:
- Find if the supplier is accredited - FCSA, Professional Passport, APSCo etc.,
- Financial Stability - credit rating of the suppliers, last filed accounts, HMRC payments
- They should be established in UK
Cost matters too:
Cost is a major factor and a priority for many recruitment agencies out there. Instead of wasting your time on other processes, start with negotiating the costs first and then move onto further verification. It won’t do you any good if a supplier is compliant but doesn’t fit your pricing mode/ budget. Add a supplier on your PSL only after you have established a fair deal with them.
Research never goes in vain:
This is one important aspect that shouldn’t be overlooked. Self-research is a great way to build healthy and strong term relationships. Before you add a supplier to your PSL, conduct proper research.
- Consider reviewing supplier work history.
- Consider the fact that if they have worked(or working) with any of your direct competitors.
- See if the supplier has experience working in your area
Conclusion:
Ever since the Criminal Finance Act was announced in 2017, recruitment agencies need to safeguard the rights of their staff, suppliers and clients. A PSL can be a way for recruitment agencies to ensure this and avoid any legal troubles.
