Experienced financial planning practitioners are in great demand, and companies seeking to hire them need to offer highly competitive packages with incentives to ensure that they attract the best candidates.
While most professional search consultancies have strictly monitored policies as to the way information about a particular position is communicated to the candidate, it may come as no surprise that some consultants ‘gild the lily’ when it comes to issues concerning the scope of the position, the potential for short-term career advancement and size of the at risk component of the remuneration package.
But from here on, they’d better be able to back-up their promises.
A warning shot has just been fired, aimed at companies that don’t accurately convey information about a particular position or alternatively that make reassuring statements to candidates about security of tenure that prove to be based on inaccurate information.
The Federal Court recently upheld a Federal Magistrate’s decision that found MBF had breached section 52 of the Trade Practices Act, as it was found responsible for the activities of its appointed recruitment search consultancy. Furthermore, the individual consultant and his/her employer could be joined as a second respondent or through a cross claim by the company.
The court found that the consultant had presented a position to a senior executive on the basis that it would be “secure for the long-term”. The executive accepted an offer by MBF to join the company and was subsequently made redundant.
From the candidate’s perspective, it is important to know if the search company approaching them is reputable and a member of an industry association; and that the consultants are experienced, qualified and have knowledge of the industry. The candidate should also know as much as possible about the client company that the consultant is representing and the position itself.
Candidates should ascertain if the search consultancy has the position on an exclusive basis and is working on the assignment with the express authority of the client. There have been occasions where consultants, on hearing of an assignment that has been given to another consulting company, will, without permission of the client, approach possible candidates as if they have the assignment.
These consultants have obviously not been properly briefed about the position on offer and may misrepresent the facts. Candidates should also be aware that if they deal with these consultants, their confidentiality may be at stake.
Most search consultants only work on exclusive assignments, however, there are occasions where clients will brief more than one consultant for a position. In this situation it has been known for candidates to be approached more than once about the same position.
However, it is best to deal with a recruitment company that has a clear track record dealing with relevant industry positions and which can prove knowledge of the individual company’s culture, corporate history and future strategic direction.
Candidates should be offered a very specific position description.
In a society where we are witnessing more disputes involving promises not delivered upon ending up in court, it is necessary to ensure that all parties involved in a hiring decision, are fully aware of all aspects of the position on offer and that information conveyed is accurate.
If these issues can be covered off, then the candidate is unlikely to be put in the position of the executive who had a short-term career as in the MBF case — i.e. jobless.
Candidates should ensure that the recruitment group they deal with follows a systematic process, and:
1. is able to answer questions in relation to security of tenure and issues regarding the company itself;
2. that any letter of offer is specific and contains clear key performance indicators (KPIs);
3. that there are no areas of uncertainty;
4. can provide detailed position descriptions;
5. keeps detailed records of interviews and conversations about positions; and
6. refers complex questions regarding remuneration, career opportunities, bonus structures and any additional compensation plans questions to the company itself.
In addition, companies should ensure that when briefing executive search firms they:
* brief only one company on an exclusive basis.
*provide accurate and realistic information.
* deal with companies that have consultants that come from the industry with a background that covers recruitment and management responsibilities.
Peter Dawson is the executive director ofFinancial Recruitment Group .
