In recent years Malta has seen a proliferation of employment, search and selection, recruitment and temping firms entering the market.

Combined with an increase in the range of services provided by the Employment and Training Corporation (ETC) this has become a competitive and buoyant sector of the services economy.

Slowly, the attitude of the business community towards such firms is gradually changing, and a better awareness and understanding of the role played by companies offering these services has become increasingly important.

Once a company has determined that it makes sense to use external recruitment resources, it is wise for this to be done in a controlled way and to follow careful procedures. What are the criteria for using outside agencies in the first place? Is the company properly licensed (up to date) by the Department of Employment and Industrial Relations?

Is the company requiring recruitment services more interested in a volume of CV 'transactions' and working with as many agencies as possible at the same time? Or does it prefer a more discreet, professional 'relationship' with an agency, which will do far more than pass on a CV but will 'add value' with a thorough search, preliminary interviews, assessments, short-listing,and generally manage the whole process and act as consultants?

To use the old cliché it's the classic "quality" (and professionalism) versus "production" dilemma.

With the increased need for highly qualified employees with specialised skill sets (for example the ever-increasing demands for qualified ICT people in all sectors and a wide variety of language skills for the i-Gaming industry) without a clear definition of a company's search policies, valuable time and resources may be wasted.

Then, there is always the question of company image. For example, in our small country it is quite feasible that people available on the job market register with a number of private agencies working on the same project.

In a multi-agency situation it is possible that the same candidate might be sourced from different firms, and this has the potential for awkward consequences.

It's important not to be too critical, as organisations have diverse needs and recruitment firms have differing business models and approaches. Some may opt for the strictly exclusive "relationship" and consultancy approach, while others are happy to compete for custom in a "first past the post" 'transaction'.

Some may have the capacity to use both models. If the need is to supply hundreds of construction workers or bus drivers, then the approach is quantitatively and qualitatively different from the search and selection of a CEO - a small capacity consultancy might be more appropriate for the latter type of project.

Maltese recruitment firms will, necessarily, be generalists not specialists, but it's worth looking at the 'focus' and capacity a firm has. Some firms offer a team of consultants covering a variety of specialist areas, and therefore are able to cater for a wider range of needs but are still able to provide the in-depth knowledge of the sector needed. Others might focus exclusively on, for example, i-Gaming or hospitality.

Arguably, the "first past the post" system makes the recruitment firms and their client companies seem more like they are haggling in the rough and tumble of a cattle market than participating in the subtle and sensitive people business.

Also, this approach encourages the temptation to forward volumes of CVs (the infamous "CV factory") while paying lip service to filtering and preliminary assessments.

So, what are the concrete steps that a company looking for recruitment services could take?

First, a company should determine the approach they prefer and the type of agency that will present the right image. Two approaches could be called consultant and conditional searches.

If a company prefers to work through an agency that acts as a 'consultancy', this is a more exclusive approach and normally entails that a specific company is used to search for the ideal candidate.

The firm is paid (at least an administration fee or deposit) regardless of whether or not that candidate is found, or who finds them, but will be much more involved in the assessment and final selection of the candidates, and will develop a close relationship with the client company.

A conditional search differs, in that a fee is generally paid on condition that the search firm finds a person to whom an offer of employment is actually made.

Some agencies might offer options with different fee structures. In the consultancy option, fees can either be a set amount, the equivalent of the first month's salary or a percentage of the annual or monthly remuneration, or some similar formula, with possible reimbursement for expenses. All fees could be negotiated in advance.

In a conditional search (which typically could be a "database only" search, the fees are customarily based as the equivalent of the first month's pay or a percentage thereof. The fees will vary depending on the agency and its additional services (the agency might, for example, offer assessment centre and psychometric testing services).

Some agencies might offer a suitability guarantee usually between two to six months, which could show that the search firm is serious about its quality processes from the accuracy of information presented to candidates to care taken for filtering in the search and selection process.

The employer is provided with a time window to evaluate the new employee's "fit", and this could coincide with a part or the whole of the probationary period. Should a candidate leave of their own will or does not meet specified standards, the agency might search and select again without charging any further placement fees or offer a refund or credit.

Temping or outsourcing for professional services, whereby the agency is the legal employer and the client essentially buys the service of the agency's temporary staff (this increasingly also applies to professional services (e.g. medical, design, IT software developers, as well as the traditional clerical/secretarial services) is one of a number of alternative options available to organisations. This is also an area where working with the right agency is crucial.

Questions that need to be asked include: "Is the agency competing for your business by charging too little to meet the payroll needs... with consequences for the stability of the service?"; "Are you dealing with a bona fide licensed agency legally entitled to provide this service and legally employing staff with all the required social benefits entitlements?"; "Does the agency have the capacity to meet the needs of your project?"

The recruitment scene in Malta is certainly buoyant and competitive with an increasingly diverse and multi-national workforce developing due to the needs of new growth industries such as i-Gaming, ICT, pharmaceutical, biotechnology, and maritime, and the fact that Maltese also have more options abroad in the European Union and elsewhere.

Professional search and selection services will continue to have an important role to play in helping make a (much needed) success of Malta's drive to adapt and change to new economic realities.

David Cutajar (dave@reedjobs.com.mt) is an established occupational consultant and CEO of Reed Personnel Services Malta Co., a franchise of Reed Personnel Services (UK), and a licensed employment, training and HR consultancy. www.reedjobs.com.mt.