A major step forward for the recruitment supply chain with launch of new code of conduct for RPO and MSP

APSCo has launched a new code of conduct representing the best interests of all parties involved in the Recruitment Supply Chain. Announced at the second Asset Based Finance Association (ABFA)/APSCo Recruitment Supply Chain Business Forum last week, the APSCo Code of Conduct already has major RPO and MSP signing up including Adecco, Alexander Mann Solutions, Allegis, and Advanced Resource Managers, with several other notable providers going through the final checks with their legal representatives.

The Code seeks to address the uncertainty recruitment industry stakeholders have experienced regarding the contractual relationships between RPO and recruitment firms. Of particular importance were clauses such as 'pay when paid' and 'non assignment of debt' which were causing cash flow funding problems for recruitment companies. The new code of conduct marks a huge step forward for staffing companies engaging with RPO and MSP says Swain, Chief Executive of APSCo:

"The Code of Conduct asks that any contract drawn up between a recruitment firm and an RPO/MSP includes a backstop date at which payment to the agency must be met or allowing staffing companies to contact the end user client for direct payment. This is vital for recruiters who, as it currently stands, must generally wait for payment until the RPO/MSP has been paid".

The new Code was launched at the 2012 Business Forum with representatives from RPO, MSP, invoice financing providers, recruitment firms and end user clients. Of particular importance was the announcement from Matthew Griffin from the Government Procurement Service that detailed his organisation's commitment to not only eradicate 'pay when paid' clauses, but that it will also ensure contracts are no less favourable. Griffin said:

"The Government Procurement Service will be supporting the Code of Conduct as it aligns with much of what the Government is trying to achieve with regards to transparency and fairness for all parties in the supply chain. We will be asking those Managed Service Providers that we engage with to support the Code. We will also be working on a sustainable model to speed up payments to days rather than months".

The panel also included Erica Briody from GE Energy Europe who invited 2nd tier recruitment firms to directly engage by attending pre-selection events to give them a chance to voice their opinion. The RPO and MSP present saw no threat from this proposal and suggested that that a successful Recruitment Supply Chain was a triangular relationship.

Attendees at the event were asked their opinion of the Code and whether their business would fully support it. 94% of respondent's maintained that they would support the code to ensure honesty, transparency, and fairness to all parties involved with just 6% undecided.

For further information, or to view the code in its entirety visit the APSCo site or contact Nick Bowles on 0207 3786 407.