2014, Term 1, Issue 1

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University paying recruitment agencies to hire managers Zoe Halse News Sub-Editor The University of Sussex has hired the services of specialist recruitment agencies on 22 occasions in the past 10 years, The Badger has discovered. Responding to a Freedom of Information request issued by this newspaper, the university recorded that it has commissioned a third party executive search firm to assist in sourcing and recruiting suitable candiates for top managerial positions 22 times since January 2004, a rate of over twice per year. In 2014 alone, the university has hired headhunting firms a total of four times. The university jusitifed the expense paid out to third party recruitment businesses, defending it as a “cost effective” means of recruiting the most outstanding candidate for each vacant position. Typically, the role of an executive search firm has been to source appropriate candidates for senior and highly specialised positions within an organisation. In certain cases, such specialised recruitment firms have also been known to act as an intermediary to investigate whether a preferential candidate would be interested in moving to a new employer, as well as dealing with the remuneration and employment contract. While the university regularly utilises the services of executive search firms, the Freedom of Information findings indicated that they do not directly employ any executive search consultants on their pay-roll. The Badger did request the total amount the University of Sussex has been charged by headhunting firms over a period of ten years, but the university declined to disclose these figures on the grounds that producing them would prejudice the instituions “commercial interests”. They said that while they considered

Sophie Jones the public interest in being transparent with their commerical dealings as a public authority, relasing precise figures would compromise the university’s “strong negotiating position”. The university also declined to provide the names of the succesful canidates who were appointed to senior positions as a result of hiring headhunting firms. Justifying the university’s collaboration with third party recruitment firms, A University spokesperson said: “The University wishes to seek out and appoint the best candidates from a wide range of backgrounds when filling senior positions. The use of executive

search firms is one way of helping to do this in a cost effective manner.” It is not known which recruitment firm the University has previously commisioned in the past 10 years but a respected human resources blog estimated that there are over 10,000 specialist recruitment firms in UK, the second most in the world after Japan. Ree, a Journalism student and Stephanie Lait, a Spanish and Italian student, reflected that: “It does not seem unreasonable for the university to source their own candidates for these positions.” They added: “The spending is not directly in the student body’s interests, it

would be different if it related to say, academic staff”. However, a second year English Literature student commented: “At a time when universities are only giving their staff a two percent pay increase, I don’t think the university are being really cost effective by paying for these firms. “To save money, I really think they should be making use of their own internal recruitment process rather than becoming reliant on third-party organisations.” The executive search firm industry has more than tripled in value since 1990 and was worth 10 billion dollars globally in 2012, 40 percent of which

was derived from the UK. Although seeking assistance from executive search firms feels out of practice slightly during the financial crises, it has once again been on the increase since 2009. Particularly in the United States, executive search firm’s acting on behalf of high profile universities and colleges is well know to be a lucrative practice. For example, Ohio State University spent up to $300,000 during the recruitment process for their new president, nearly $222,000 of which was paid in fees to executive search firms for their part in the eventual appointment.


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