Whilst a number of recruiter agencies have looked favourably on social networking sites and how they can help match a contractor with a client, some are apprehensive and have reported this trend in a fairly down beat manner. Some recruitment agencies are also concerned that this trend may threaten recruitment industry profits.

Stephanie Lee, Sourcing Specialist for European Staffing for Intel Corp UK recently spoke at the Association of Recruitment Consultancies (ARC) conference and explained how her company had become an avid user of social networks to help source new candidates. Intel had a reputation for only employing ‘geeks’ and in order to rectify this image, they had developed a ‘social media vision’.

Although large companies may be focusing on using social media rather than using a recruitment agency, recruitment agencies are to using social media to source the right candidate for their client.

At the UK’s second Social Media In Recruitment conference to be held on 22nd April 2010 in London, both Google and LinkedIn have been confirmed as speakers. Mike Taylor from Web Based Recruitment, organisers of the conference is looking forward to another successful conference to help corporate recruiters, recruitment agencies, recruitment advertising agencies, job boards and recruitment industry suppliers get the most from using Social Media in Recruitment.

This latest update on the recruiting trend only confirms what ICS already thought about recruiters increasingly using social networking sites to source contractors, consultants and freelancers to match their clients brief.

Here at Independent Contractor Services (ICS), we firmly believe all contractors, freelancers and consultants should have a professional presence on social networking sites such as Twitter and LinkedIn thus making it easier for a company or a recruitment agency to find you and match your skills with a potential new contract.

This report comes just as a survey from TalentPuzzle has shown that 76% of UK businesses believe they are not getting value for money from recruitment agencies. They feel frustrated that there didn’t seem to be any consistency in the rates charged by agents when they are recruiting for contractors and permanent employees.

According to TalentPuzzle, UK businesses currently spend £2.6 billion on external recruitment of contractors and permanent employees per year, but some are now looking for improved methods of recruiting and are seeking to reduce their fees. Virginia Raemy, CEO of TalentPuzzle commented;

“It is clear that both recruiters and employers need to improve the way that they work together. They should have a symbiotic relationship, rather than seemingly working against each other. By working much more smartly and effectively together this would help raise the quality and targeting of CVs. This is a win-win situation for both parties, as it helps employers to reduce their time to hire and helps recruiters improve their reputation, increase their quality and hopefully increase their new business,”

Bob Young, a partner at business rescue, recovery and restructuring specialist Begbies Traynor, said: “I have seen a significant increase in problems in the recruitment sector this year (2009). The main reason for this is the general downturn in the market.”

On a positive note though, the latest Jobs Outlook survey from the Recruitment and Employment Confederation (REC) revealed that 94% of employers are not looking to make any further cutbacks on jobs in 2010 and 20%are even looking to increase the number of contractor roles over the next 12 months.

Other agencies that were exposed in the investigation were; A Warwick Associates (£3,303), Beresford Blake Thomas (£0), CDI AndersElite (£7.6m), Eden Brown (£1.07m), Fusion People (£125,021), Henry Recruitment (£108,043) and Hill McGlynn & Associates (£0). They were all found to have breached the Competition Act 1998. Beresford Blake Thomas (BBT) and Hill McGlynn & Associates were granted immunity from fines in return for exposing the cartel. Had they not revealed the cartel, BBT and Hill McGlynn would have received the largest fine of the lot according to the OFT.

In 2003, Parc entered the market as an intermediary between construction companies and different recruitment agencies for the supply of candidates, which placed pressure on the margins for recruitment agencies. Rather than compete, the recruiters formed a cartel, referred to as ‘the Construction Recruitment Forum’, which met five times between 2004 and 2006. In this forum, an agreement was made to boycott Parc and also co-operated to fix the fee rates they would charge to intermediaries, such as Parc, and also certain construction companies.

“This is a serious breach of competition law and the level of fines reflects this,” said Heather Clayton, a senior director of the OFT. “Cartels such as these can impact on other businesses, in this case construction companies, by distorting competition and driving up staff costs. Ultimately it is the consumer and the wider economy that loses out from such behaviour.”

1. Networking – For anyone in business, networking is great for developing leads and contacts. Get to know as many contractors as you can as often companies needing more contractors will ask current contractors if they know of any. LinkedIn is an online networking site that can help you re-connect with past and present colleagues and classmates and also power your career by discovering inside connections. It is important you create your own LinkedIn profile which promotes you and your business achievements as well as details what sort of contracting work you are seeking.
2. Contacts – To succeed at ‘going it alone’ and finding your new contract, you need to optmise your existing contacts and also build a new set of contacts. It is important to remember that potential clients could be anywhere, so do not be afraid to discuss your contract services in both business and social settings. By thinking about everyone you have previously worked with, you may find some could be potential clients or they may know someone who is. Don’t be afraid to pick up the telephone and contact them.
3. Online Presence – It is crucial you create an online presence. By having a LinkedIn profile, you already have an online presence but enhance that by perhaps creating a website which details all your past employment, business achievements, what you are looking for and what you can offer to a potential client. It should look professional and keyword friendly so a client searching for a specific job title will find your website. Also, as a recent article discusses, use Twitter and other social networking sites to search for contracts as well as state what you’re skills are.
4. Stationery – Ensure you have professional business cards and hand them out to friends and contacts you may have so they can spread the word too. The cards should have all your contact details as well as a brief description of what services you offer.

We hope the guide has provided you with some helpful tips to find your next contract. Independent Contractor Services can offer advice to anyone considering becoming self employed or a contractor. They can take you through what’s involved in running your own business, as a sole trader or limited company, or working through their umbrella service. Call 0800 195 3750 for full details of the benefits.