Hays

Melbourne IT companies – HAYS

Pros:

• Customer service overall is generally a positive experience.
• Able to recruit candidates overseas if required
• Have offices in 5 major cities: Melbourne, Sydney, Perth, Brisbane and Adelaide.

Cons:

• Not IT recruitment specialists
• Higher fees than other recruitment agencies, particularly for senior staff
• No clear discount policy. Willing to negotiate on a case-by-case basis

Fees

The graph below depicts the fee models for our top 5 IT recruitment agencies in Melbourne.

	$0 - 50K	$50 - 80K	$80 - 150K	$150 - 250K	$250K +
	10%	10%	10%	10%	10%
	16%	16%	16% (up to 100k) 18% (more than 100k)	18%	18%
	15%	17%	19%	21%	21%
	17%	17%	17%	17%	17%
	15% ($0 - 30k) 16.5% ($30 -50k)	18.50%	21%	25%	25%

Our Hays review team have sourced that the fee model is an incremental positive gradient, charging:

• 15% of the annual salary package for employees with a salary below $30,000 per annum,
• 16.5% of the annual salary package for employees with a salary between 30-50,000;
• 18.5% of the annual salary package for employees earning between $50-80,000;
• 21% of the annual salary package for employees with a salary between 80-150,000; and
• 25% of the annual salary package for employees with a salary between above $150,000.

The graph below shows the analysis of fees from our top 5 Melbourne- based IT recruitment agencies. Hays have an incremental positive gradient model, which increases percentage of feed depending on the salary of employment. The fees operate as a percentage of the employee’s annual salary package, and range from a maximum of 25% (for very senior employees on a high salary) and as low as 15% for very junior staff on a low salary. Overall, when compared to the top 5 Melbourne-based IT recruitment agencies, this fee structure is relatively expensive, particular for senior employees.

Hays does not actively display any exclusivity discounts on their webpage but unlike some other Melbourne based IT recruitments companies, they are happy to come to the table and negotiate discounts with their clients on a case by case basis.

Hays does not offer upfront a reduction of fees for multiple engagements. As noted above, the fees increase per salary category which starts at 15% of the annual salary package for salaries below 30k, 16.5% for salaries between 30-50k, 18.5% for salaries between 50-80k, 20.5% for salaries between 80-150k and 25% for salaries above 150k. The review team found other IT recruitment agencies do have clearer discount arrangements. Hays will negotiate with their client to meet client needs.

Hays does have the highest fee model and largest spread of fees compared to the top 5 IT recruitment agencies Melbourne wide.

For non-exclusive assignments, the payment model for Hays is that they require payment within 14 days of receipt of an invoice, the invoice being provided on the commencement date of the candidate. However, when you have requested Hays’ exclusive services to seek your candidates: 33% must be paid upon acceptance of the assignment (minimum of $3,000, excluding GST), 33% must be paid upon presenting of a short list, the balance remaining upon the commencement of the successful candidate. A minimum fee of $4,500 (excluding GST) will apply to any permanent placement.

Customer Service

The graph below displays the rankings given to each of our top 5 Melbourne-based IT recruitment agencies, based on their customer service performance when handling customer enquiries via email and over the phone. Our Hays review team rated the company 9 out 10 for the level of customer service via email enquiries. Email queries were generally responded to within 12 hours, which is a fast response time.

Hays level of phone customer service was rated 9 out of 10 by our Hays review team. All questioned were answered with confidence and professionalism. This Melbourne based IT recruitment agency were also very flexible to meet the requirements of the client.

Hay was rated the second highest by our review team for its phone and email correspondence compared to the top 5 IT recruitment agencies Melbourne wide.

Their strong customer service was demonstrated in a number of ways:

• Management were very professional and confident when speaking about their methodology for recruiting candidates.
• Hays has the ability to recruit via the European market if the role is very niche specific. Not all IT recruitment agencies have tis ability to recruit internationally.
• Our review team found that nothing is set in stone at Hays and everything can be negotiated to meet client expectation.

The graph below reveals how fast our top 5 IT recruitment companies sent through their standard terms and conditions when our Hays review team requested them over the phone. Hays did not respond initially but after a phone conversation their terms and conditions were sent within 2 hours. This is fast compared to other IT recruitment agencies Melbourne.

The rows in the image below, taken from our larger Melbourne IT comparison table, reflect how our top 5 IT recruitment agencies in the Melbourne region were ranked for their overall customer service performance, as well as the overall speed of their replies to customer enquiries. Our review team rated Hays 4.5 out of 5 for customer service and found its response to customer enquiries was given at a “fast” rating, generally providing a customer with their standard terms and conditions within 1 – 12 hours of a request to do so over the phone.

The image below is Hays customer service form for online enquiries. There are multiple categories and an ability to attach specific documents. This is a simple and efficient way for customers to interact with Hays, though phone is the preferred method of communication.

Guarantee Period

Guarantee Period is the period in which the recruitment agency will replace a candidate should they demonstrate poor performance or leave the company within the guarantee period. All recruitment companies offer different guarantee periods.

Our Hays review team noted that:

• The guarantee period for Hays is that if an employee leaves or is not meeting the standard of the role Hays replaces the candidate within 3 months for no additional cost. The guarantee period will only apply to customers that have paid the fees set out in the invoice within 14 days of the employee’s commencement date.
• If the client is wanting an alternative arrangement, Hays is happy to negotiate on this point. For example, Hays is willing to provide a customer with credit towards the next job.

The graph below shows that Hays guarantee period is 3 months. This is the equal second, and most prevalent length of time for a guarantee period, however not as long as some others in the industry, who have as long as a 6-month guarantee period.

Our Hays review team noted that 3 months is the average time for a guarantee period compared to the other 5 Melbourne IT recruitment agencies.

Methodology

Hays uses many methods to recruit candidates. They use candidate attraction strategies via their large network, use job boards such as Seek as well as Linked In. They also have extensive databases of candidates and also will use professional meet up groups. Most IT recruitment agencies use multiple methods to recruit, however Hays’ reach and variety of methods impressed.

There are usually 2 stages for finding candidates. Stage one is telephone interviews, which they spend 15-20 minutes discussing the role with the candidate. Stage two is face to face in the Hays office.

This Melbourne based IT recruitment agency will usually interview around 5 candidates for a very generic role. The short list that is sent to their client is 3 candidates. This is the average amount compared to other IT recruitment agencies Melbourne wide. There may be more or less stages to the interview process if the role requires it.

Expertise

Hays was established in 1976, and so is a very experience recruitment agency.

They are no dedicated IT and technology recruiters, however based in Melbourne they have 25 recruiters split across 3 verticals: business and projects change, development team and infrastructure security and cloud.

The image below shows the industries Hays recruit for. They are not solely IT recruitment specialists, but cover the main industries for employment and also operate all over the world.

The graph below indicates that Hays has offices in all 5 cities: Melbourne, Sydney, Brisbane, Perth and Adelaide, as well as, Newcastle, Wollongong, Geelong, Moonee Ponds, Glen Waverly, Southport, Canberra, Darwin, Launceston, Hobart, Camberwell and St Kilda Road

	Melbourne	Sydney	Adelaide	Perth	Brisbane

The office locations in Melbourne are: CBD, Camberwell, Monee Ponds , Glen Waverly, St Kilda Road, Mulgrave. Hays did make it clear to our review team that they will recruit from overseas countries if required to find the suitable candidate.

Overall, our review team rated this Hays 3.5 stars, which ranked them outside the top 5.