Growing world-class procurement. All-of-Government buyer s guide. External recruitment services

Growing world-class procurement All-of-Government buyer s guide External recruitment services For government agencies November 2014

This guide is one of a series created under the New Zealand Government procurement reform programme for each All-of-Government (AoG) contract. For more information or to give feedback, please contact Ministry of Business, Innovation and Employment s Centre of Expertise for external recruitment services (Recruitment CoE): Ministry of Business, Innovation and Employment Government Procurement Branch P O Box 10279 Wellington 6143 aogrecruitment@mbie.govt.nz telephone enquiries: o Jeff McDonald (04) 901 8641 o Emma Hillman (04) 901 8172. Government Procurement Branch Ministry of Business, Innovation and Employment PO Box 10279 Wellington 6143 New Zealand www.mbie.govt.nz www.procurement.govt.nz Crown copyright This work is licensed under the Creative Commons Attribution-No-commercial-Share Alike 3.0 New Zealand License. In essence you are free to copy, distribute and adapt the work non-commercially, as long as you attribute the work to the Crown and abide by the other licence terms. To view a copy of this licence, visit http://www.creativecommons.org.nz. Please note that no departmental or governmental emblem, logo or Coat of Arms may be used in any way that infringes any provision of the Flags, Emblems, and Names Protection Act 1981. Attribution to the Crown should be in written form and not by reproduction of any such emblem, logo or Coat of Arms.

Contents Introduction... 4 The provider panel... 4 Contract overview... 5 Benefits overview... 6 Key agency benefits... 7 Cost savings... 7 Improved decision making... 7 Secure terms and conditions... 7 Additional services at contracted rates... 8 Flexible primary and non-primary services... 8 Principles of engagement... 9 Joining an AoG contract... 10 How to buy services... 10 The RSO... 11 AoG fees... 11 Choosing panel providers... 12 Roles and responsibilities... 12 Appendix 1: The AoG provider panel... 14 Appendix 2: Job family definitions... 15 Appendix 3: Recruitment activities... 16 Appendix 4: Key contract terms and conditions... 17 Appendix 5: Additional services... 20 Appendix 6: Recruitment services order... 21 Appendix 7: Frequently asked questions... 22 Related information... 26 3

Introduction This guide provides government agencies with the information they need to buy from the All-of- Government (AoG) contract for external recruitment services. It provides an overview of: the contract the benefits the scope of services how to join and buy under the contract what fees apply how to select providers roles and responsibilities frequently asked questions. The provider panel MBIE s AoG recruitment contract leverages the government as one client with 41 providers. Each of these providers is chosen because they offer the best value-for-money, quality or price within selected primary service lots covering Auckland, Wellington and Christchurch. An eligible agency may already be using some of the panel providers and can continue doing so after joining this contract. The numbers in the table below, indicate how many of the providers were selected and are therefore promoted within each of the nine service lots. 4

Contract overview External recruitment services Term Initial term of three years, expiring on 19 September 2015. There are two rights of renewal of 12 months each. Scope Provider panel Pricing Features Based on the supply of primary recruitment services relating to: permanent, temporary and contractor placements roles classified within common administration, corporate and information technology job families Auckland, Wellington and Christchurch a range of other available services. 41 providers are appointed on the basis of their selection under primary service lots. This gives agencies the flexibility and choice to select providers according to their specific business needs. Providers are recommended based on relative value for money, quality and price factors. Based on provider fees (as a percentage mark-up), with cost savings available for all primary service lots under the contract. In addition to better value-for-money, the AoG contract offers: competitive provider fees reduced cost-of-engagement for government agencies and providers standardised service descriptions and supply terms/conditions (e.g. candidate warranties and permanent conversion) a consistent process for ordering recruitment services based on good practice under a recruitment services order (or similar) equitable access for government agencies to a range of additional services at contracted prices enhanced reporting on government recruitment spend activity and provider performance the opportunity to leverage primary services terms and conditions to other supply areas (i.e. roles in specialist job families or roles in other regions). 5

Benefits overview Benefits The Recruitment CoE has used the collective buying power of the whole state sector to negotiate a best value-for-money contract. All government customers have equal access to the same services at reduced prices, together with a range of benefits offered by the providers. An expected 10 per cent saving on government s annual external recruitment spend in the most common recruitment areas (with base pay and recruitment agency fees), including: role types job families locations covered under the primary services contract. Government agencies have access to a wide range of providers that offer the best market price, service quality and capacity. Many of these providers have capability to source candidates for other specialist job families and within other regions the contract allows them to extend to these areas under the same terms and conditions. Under an AoG contract, government agencies maintain the ability to: manage daily dealings directly with providers advise strategic objectives and requirements issue a recruitment service order (RSO) make payments. Once an eligible agency joins the contract and becomes a participating agency (for more information on this process, see Key terms), it can access the contract s services and fees (subject to any pre-existing arrangements). The agency can choose its provider/s on a role-byrole basis or a selected-provider-relationship basis. During the contract s lifetime, the agency can access: reporting valuable information on provider s spending levels and performance many additional services from the provider (for more information, see Appendix 5). The AoG contract defines a range of key terms that may not yet have been previously explained, including: the particular recruitment activities included in a recruitment service order candidate warranties temporary and contractor to permanent conversion candidate ownership definition and limits relating to on-costs. 6

Key agency benefits Cost savings The AoG solution presents a significant opportunity to purchase the most commonly needed external recruitment services at reduced contracted rates. In addition to competitive AoG fees, the Recruitment CoE negotiated a consistent understanding between government and recruitment providers regarding what is delivered for those fees. This covers detailed candidate sourcing, applicant management and what services will be provided. The list of recruitment activities included for permanent, temporary and contractor placement services are detailed in Appendix 3. The Recruitment CoE also offers a cost savings benefits analysis to any eligible agency, to help it qualify for potential savings. For more information on this service, contact the team directly: aogrecruitment@mbie.govt.nz. Improved decision making Once joined, the agency can improve its ability to make informed decisions via access to: a range of detailed provider information comparative value for money, quality and price rankings derived through the RFP and evaluation process. Secure terms and conditions One of the main benefits for agencies (and providers) is that the commercial aspects and service delivery terms/conditions are consistent across all 41 providers. This enables both parties to: focus on the job of recruiting, as required be more agile and efficient in their engagement on a day-to-day and longer-term basis. The AoG solution offers secured terms relating to: the form of a recruitment service request and the quote-to-order confirmation process a six-month warranty for permanent candidates and a range of remedies (including a refund/credit of fees, or a replacement candidate) a defined resolution process and range of remedies for when a temp or contractor leaves mid-assignment; or an agency wishes to terminate an assignment early; or a significant conflict of interest arises terms preventing the solicitation of agency employees by providers while engaged to perform services under the contract discounts on placement fees for the conversion of temps or contractors to permanent employees clear candidate ownership criteria (e.g. agencies own any candidate who has submitted their CV directly to that agency within the 12 months preceding the provider presenting that same candidate for a specified assignment) on-costs (as a percentage of base pay) for temporary recruitment services can be varied by negotiation, but are capped at 18% 7

ability to agree volume-based discounts, fixed fee or other pricing arrangements for predetermined volumes of primary or additional services confirmed under a recruitment service order (RSO) invoicing and payment terms have been agreed and the default position is that charges will be invoiced monthly in arrears on a single itemised invoice noting: o invoices are to be paid by the 20 th of the month following the month that the invoice was received o the contract allows flexibility for agencies and providers to agree the form, content, mode of delivery and frequency of invoices as part of each RSO. A list of key contract terms and conditions is included as Appendix 4. To view the services agreement with providers, contact the Recruitment CoE: aogrecruitment@mbie.govt.nz. Additional services at contracted rates Each provider offers a unique list of additional services at agreed AoG rates, such as job analysis and skills testing. Some providers offer value-add services free-of-charge. This means all agencies can now enjoy a range of additional benefits, which previously only some were able to negotiate. The list of additional services from providers is detailed in Appendix 5. Flexible primary and non-primary services The AoG solution offers a comprehensive range of benefits to agencies centred on the most common types of recruitment services and regions required by NZ Government (known as the nine primary service lots for jobs in Auckland, Wellington and Christchurch). However, many eligible agencies will also need to recruit for a range of specialist roles outside these common job families (e.g. teachers, scientists, blue-collar workers, clinical and medical staff). Their needs will be specific to their particular operational, industry or core-business focus. Some agencies may also be based outside of the common regions (see above) or have a number of regional offices they need to recruit for. The AoG recruitment contract allows agencies to access any of the providers for a broad range of services under the same general terms and conditions including: primary service lots outside of those promoted under AoG (there have contracted rates) specialist roles out-of-scope of the three common job families under primary services (e.g. blue-collar roles, scientists and teachers), which are defined as non-primary services job roles outside of the common regions (i.e. Auckland, Wellington and Christchurch), which are also defined as non-primary services contractor resourcing not traditionally supplied through external recruitment agencies (i.e. some providers represent a viable alternative to other external sources such as IT contractors sourced through vendors or consultancies). This enables agencies to more effectively manage fewer supplier relationships (if they wish), to gain mutual benefit for themselves and their providers. 8

Although there is likely to be capability among the 41 provider panel to deliver recruitment services to non-primary services, once an agency joins the AoG solution they will maintain their ability to engage non-aog suppliers to address out-of-scope specialist or regional recruitment needs. For examples of specialist jobs, see Appendix 2. Principles of engagement There may be significant interest from within eligible agencies about the providers, the new AoG fees and other solution benefits. Providers may be keen to tell you about their service offering and rates. It is also likely that some of the agency s existing suppliers are now AoG providers and those providers may be keen to talk AoG with all parts of your agency. This includes your HR/recruitment managers and the hiring managers they usually do business with. Suppliers who have not have been appointed to the AoG panel may also wish to discuss AoG with you. It is important to remember that all detailed information (including fees) remains confidential until a non-disclosure agreement (NDA) has been signed between the Recruitment CoE and your agency. In addition, the Recruitment CoE must have a signed Letter of Accession (LoA) from your agency before your agency can purchase from and enjoy the benefits of the AoG contract. The individuals with authority to sign-up your agency to the AoG contract would include the chief executive. But they are most likely to be a next-tier executive such as the chief financial officer or chief procurement officer, or a general manager of HR, recruitment or corporate services. Before they sign, it is important to ensure that they are aware of: the full range of solution benefits the expectations and responsibilities on them under the Memorandum of Understanding (MoU) to the contract. The Recruitment CoE will manage a structured progression of eligible agencies through the sign-up process, which may include a benefits analysis. If you have any questions about the sign-up process or experience any issues with contact from prospective providers, please contact the Recruitment CoE directly: aogrecruitment@mbie.govt.nz. 9

Joining an AoG contract The process for agencies to join and transition to using the AoG external recruitment service contract is the same as every other AoG contract. The following diagram outlines the steps. Eligible agencies can access general information about the contract through this buyers guide or by contacting the Recruitment CoE. Recruitment CoE ensures eligible agency is covered by a non-disclosure agreement. Agencies may request a customised benefits statement from this CoE before deciding to join the contract. A senior person (with appropriate delegated financial authority) within the eligible agency must sign a LoA to a MoU before it becomes a participating agency and can purchase from the contract. The process is managed by the Recruitment CoE. Once the LoA is signed, the Recruitment CoE gives the panel directory containing provider details, the primary service lots they were selected for, relative value-formoney and quality rankings, plus contracted fees. The Recruitment CoE advises providers as soon as each eligible agency becomes a participating agency. he CoE will inform the Lead Representative for each Provider). The participating agency can begin purchasing services from any of the providers listed CoE in the will panel liaise with directory. Participating A proposed Agencies provider to support selector the transition guide will at the also earliest be given. opportunity. Providers have also agreed to aid this process Participating agencies may wish to establish their own sub-panel of providers (i.e. a sub-set of the 41 providers). The Recruitment CoE will help agencies run an efficient selection process. However, this CoE will also highlight the benefits and encourage immediate use of the existing solution. 10

How to buy services The Recruitment Services Order The Recruitment CoE uses the RSO to provide a consistent approach to purchasing recruitment services, based on good recruitment service engagement and good recruitment practice. The RSO is: the standard approach for recruiters and hirers from participating agencies to request the services available under the AoG contract used whenever a participating agency seeks AoG services. However, the RSO can be substituted with alternate forms or methods if the alternative follows a similar engagement process and contains the same key elements in the RSO. For example, an agency may use a recruitment technology solution to push requests to external recruitment suppliers. This alternative solution is only viable if the request and quoting process include the RSO s key elements and process. For the full RSO form, see Appendix 6. All-of-Government fees The charges a provider invoices a participating agency under the AoG recruitment contract, are based around all the services purchased under an RSO. These may include: provider placement fees for primary services (contracted fees) or non-primary services (fees by negotiation) additional services (as priced in the panel directory) base pay for permanent, contractors and temporary/temps (e.g. annual, daily or hourly rate) AoG administration fee (providers charge one per cent on the sum of all components above where applicable under an RSO on behalf of the Recruitment CoE) on-costs for temp assignments (these may be varied by negotiation with providers, but under the AoG solution they are capped at 18% of temp base pay). Cabinet has decided that government agencies: can keep any cost savings from using the AoG contract are charged a small administration fee, so that MBIE can recover the cost of developing, delivering and managing AoG contracts. The panel directory contains all provider placement fees, additional services rates and other commercially sensitive information. Participating agencies can view this directory once they sign the LoA. 11

Choosing panel providers Once the agency signs the LoA to become a participating agency, it is free to choose any provider(s) that meets its business needs from the panel directory. The AoG solution is designed so participating agencies can: simply choose a provider for a specific assignment (i.e. on a role-by-role basis) or; form a sub-panel of providers which they intend to use on a regular basis. The AoG recruitment contract and solution have been structured with both these situations in mind. There is no need for participating agencies to run their own procurement process to decide which providers they will use. This is due to the: comprehensive RFP evaluation process already conducted the solution s contracted rates, terms and built-in flexibility. Each agency is ultimately responsible for selecting providers. However, the Recruitment CoE strongly encourages agencies to base their decisions on the best value-for-money, quality and price the panel presents. If required, guidance and support on running a selection process is available from the Recruitment CoE. Roles and responsibilities We all have a part to play in helping eligible agencies participate in the AoG contract. Eligible agencies are responsible for: fulfilling cabinet expectations to participate in the contract using the provider panel for all in-scope primary services using RSO s (or similar) as a means of initiating service requests under the contract providing transition progress and other reporting, which may be requested by the CoE selecting and managing their daily relationship with providers raising any disputes with the CoE keeping all commercially-sensitive information confidential (including not sharing it with other providers and recruitment suppliers) ensuring all provider services are charged and paid, in line with contracted fees and terms fulfilling their obligations under the MoU, including the management of any leakage (i.e. use of non-panel providers for primary service recruitments) making prudent decisions about which channels to use for resourcing solutions (e.g. IT vendor panels versus AoG external recruitment solution) completing agency satisfaction surveys. 12

The CoE is responsible for: signing-up eligible agencies to the AoG solution communicating the benefits and processes to eligible agencies reporting on eligible agency uptake and participation to Cabinet overall contract management and performing obligations under that contract monitoring provider performance against the contract service levels and conducting review meetings with providers resolving ad-hoc issues and managing disputes providing performance and activity reporting to agencies. conducting and reporting agency satisfaction surveys Providers are responsible for: not providing any fee information to an eligible agency unless the CoE confirms that LoA to the MoU has been received respecting the wishes of the eligible/participating agency on how and when they may decide to engage with providers (including recognising that the CoE must facilitate their introduction and sign-up to the AoG solution before any purchasing can occur) supporting participating agencies in their use of the AoG solution as soon as possible (once they are ready) delivering to RSO s (or similar requests) charging for services in line with contracted fees and terms to participating agencies, including correct application of administration fees reporting and fully paying all collected administration fees to the CoE on time maintaining records and providing reports as required for the contract (and to participating agencies if requested) informing the CoE of any concerns or issues and responding to feedback performing all other obligations required under the contract, including observing the relationship principles of schedule 6 in the agreement. Please note that each provider s lead representative is responsible for ensuring that all obligations and expectations are observed plus communicated to all their employees involved in delivering the AoG solution. 13

Appendix 1: The AoG provider panel 1 Absolute IT Limited 22 McLaren Associates Limited 2 Adecco Personnel Limited 23 Momentum Holdings Limited (Momentum and Velocity) 3 Alpha Personnel Recruitment Limited 24 Niche Recruitment (Law Staff Limited) 4 Azimuth Contracting Limited 25 Ninetwenty New Zealand Limited (formerly Talentpoint Limited) 5 Beyond Services Limited 26 OCG Consulting Limited (OCG and Pinnacle IT Recruitment) 6 Candle New Zealand Limited 27 Place Recruitment Limited (formerly Searchworks Limited) 7 Capital Recruitment Limited 28 Project Plus Limited 8 CareerDynamix Limited 29 Radius Recruitment New Zealand Limited 9 Careering Options Limited 30 Randstad Limited 10 Drake New Zealand Limited 31 Recruit IT Group Limited 11 Enterprise Recruitment Limited 32 Robert Walters New Zealand Limited 12 13 Frog Recruitment Limited 33 Recruit Rubicor NZ Limited (Powerhouse People, Gaulter Russell and Numero) GBL Personnel Limited 34 Sead Limited 14 H2R Limited 35 Sheffield Group Limited 15 16 17 Hays Specialist Recruitment (Australia) Pty Limited 36 Talent 2 NZ Limited Hudson Global Resources (NZ) Limited 37 talentnow! (Talent Group Limited) including PeopleSearch (Wellington) Inside Executive Recruitment Limited 38 Talent International (Formerly Neal Andrews and Associates 18 JacksonStone & Partners Limited 39 The Johnson Group Limited Kelly Services (New Zealand) Limited 40 The Madison Group Limited (Madison Recruitment Limited, Madison Recruitment (Christchurch) Limited, Madison Recruitment (Waikato) Limited, 19 Madison Recruitment (Wellington) Limited, Madison Recruitment (Auckland South East) Limited, Madison Force Limited, Interim Taskforce Limited and Pursuit Recruitment Limited 20 Mana Recruitment (NZ Jobsquad Limited) 41 Worklife Group Limited 21 Manpower Services (New Zealand) Limited 14

Appendix 2: Job family definitions Common admin Common corporate (including executive) Common IT Specialists (sector-specific, nonprimary) Administrator Office assistant Office manager Executive assistant Personal assistant Receptionist Helpdesk Contact centre and customer services Finance/HR/marketing (this includes assistants, coordinators and accounts/payroll) Project admin/support Other Accounting and finance Collections and enforcement Asset management /property/facilities (includes security, health and safety) Tier 1 and 2(>$200k) Tier 1 and 2 (e.g. in smaller State Services agency ($150-$200K) General management (Tier 3 or Tier 1+2>$150k) HR and recruitment; workforce development Legal Knowledge management (library and records) Marketing and communications Policy, research and evaluation Planning and reporting Procurement/contract managers/category managers Training and learning and development Programme directors/managers (non-ict) Project managers/co-ordinators (non-ict) Change management/transformation (non ICT) Other CIO Architect Application support Business analyst Business intelligence analysis Database administrator Data warehouse Developer (database, software) E-solutions specialists Hardware engineers Network engineers Helpdesk and IT support IT management Network and systems administration Service management (includes change, release, incident, problem) Security/risk Technical writers/webcontent/reporting Testing Web/intranet development Programme directors/managers (ICT) Project managers/co-ordinators (ICT) Change management (non ICT) Other Blue collar registered trades (e.g. electricians, builders) Blue collar other roles (e.g. kitchen assistants, cleaners, etc.) Defence, corrections and security (e.g. prison guards) Education (teachers) Engineers, architects, surveyors, etc. Health and medical (e.g. doctors/nurses) Police, emergency services Oil and gas workers Science, technology and environmental (e.g. scientists) Social welfare and community (include case workers, tenancy managers) Transport and logistics (e.g. train driver) Other 15

Appendix 3: Recruitment activities The following, non-exhaustive list of recruitment activities may form part of a primary or nonprimary service requested by a participating agency under an RSO. Recruitment activity Permanent Temporary Contractor Review job description and confirm requirements with client Research industry, locate logical talent pool and search current databases Local advertising (job boards and websites) Management of applicant communications Applicant matching and screening Long-listing or short-listing (as agreed with customer) Arrange and schedule interviews with hirer (phone-based, Skype or in person) Referee checks and reports Credential check and verification (e.g. clearance to work in NZ and/or Ministry of Justice criminal record check) Identify preferred candidate with client, complete remuneration negotiations and offer acceptance On-boarding activities as required Unsuccessful candidate de-briefing Post-placement activities as agreed Personnel time-sheeting and client billing Manage personnel on-costs Personnel payroll 16

Appendix 4: Key contract terms and conditions Agency engagement Some agencies may have immediate purchasing requirements. Agencies can contact the Recruitment CoE as soon as they are ready to join, for assistance with the joining and transition process. Eligible agencies Those agencies that can buy from the AoG contracts include: Public Service departments State Services agencies local government schools organisations in the wider state sector that are completely owned or controlled by central or local government. Participating agencies These are eligible agencies that have signed up to one or more AoG contracts through a MoU with the Recruitment CoE. Engaging a provider Each time a participating agency wants a provider to fill an assignment it will need to fill-in an RSO (or similar) that records the assignment-specific terms agreed by those parties for the performance of those services. Process for issuing and responding to an RSO If a participating agency wishes to engage the provider to perform services, it should complete Part A of the RSO and email it to the provider. After receiving the RSO, the provider completes Part B and then emails it to the participating agency. Once the participating agency receives Part B of the RSO, it will promptly advise the provider (in writing) if it is acceptable. The provider may not commence performing the services until this approval has been given. If the services are required so urgently that it is impractical for the provider to fully complete Part B of the RSO before commencing the services, then the provider must complete it as soon as reasonably practicable after commencing those services. Insurance During the term of the contract and for a period of two years following the effective date of expiry or termination of the contract, the provider will (at its own expense) ensure that it maintains adequate insurance in respect of its potential liability for loss or damage under the contract. 17

Invoicing and payment Invoicing and payment terms have been agreed the default position is that charges will be invoiced monthly in arrears on a single itemised invoice. Invoices are to be paid by the 20th of the month following the month in which the invoice was received. However, the contract allows flexibility for agencies and providers to agree the form, content, mode of delivery and frequency of invoices as part of each RSO. Confidentiality It is important to protect confidential information. The provider and agency must: safeguard confidential information not disclose confidential information to any third party or use it for their own benefit. Dispute resolution Both parties must use their best efforts to resolve a dispute or difference that arises. This means they must negotiate in good faith to find a solution. Under the contract, there is a formal escalation process for disputes. Escalating a dispute Timeframe The day the dispute arises Escalation Both parties escalate to their respective representative If not resolved within 10 business days If not resolved within a further 10 business days If not resolved within a further 10 business days If not resolved within a further 10 business days Participating agency (buyer) escalates to its senior representative (who has delegated responsibility to resolve the dispute) Supplier escalates to its lead representative Participating agency escalates to its Recruitment CoE representative Supplier stays with lead representative Participating agency escalates to its Recruitment CoE procurement manager Supplier escalates to their national manager (or equivalent) Participating agency escalates to its Recruitment CoE general manager at the Government Procurement Branch Supplier escalates to their chief financial officer (or equivalent) 18

Administration fee Participating agencies will benefit from substantial cost savings negotiated through the AoG contracts. Cabinet has decided that participating agencies should retain those savings, but has agreed that a small administration fee be applied to each order placed. This money is used to fund: the initial procurement activity required to put these AoG contracts in place the on-going management of the external recruitment services solution other AoG contracts the wider Government procurement reform programme. An administration fee of one per cent will be applied to all orders placed by participating agencies under each RSO. The administration fee is collected by the provider at the point of invoicing agencies. The provider will then remit this to the MBIE on a quarterly basis. This administration fee should be included in all quotes and estimates given by providers. 19

Appendix 5: Additional services Service providers have offered the following services to their client participating agencies sometimes at no cost. Further details can be found in the panel directory. Service offering Salary surveys and market updates: Providing bi-annual salary survey information for tendered category/s and regular market/ industry reports. Benchmarking information: Providing data to allow benchmarking of rates across job types. Behavioural interview training: On-site facilitation (purchaser premises) of behavioural interview training for representatives of user departments and agencies. On-line tool training. Consolidated invoicing. Writing advertisements. Behavioural questions: Development of specific competency based behavioural interview questions for specified job roles. Behavioural interview: Conducting behavioural interviews for purchasing sourced and referred candidates, on the supplier's premises. Joint interview support: Supporting on-site (purchaser premises) candidate interviews, with a charge per interview. Job analysis: Conducting thorough job analysis. Also preparing detailed skills/competencies/experience for job and person specifications. Skill testing: Purchasing sourced or referred candidates for administration of skill testing (using agency in-house assessment tools only). Assessment centre design: Design of a competency-based assessment centre for specified job roles. Assessment centre observers: Providing a suitably qualified assessor/observer to assist with onsite (at purchaser premises) assessment centre. Assessment centre facilitation: Providing a suitably qualified facilitator to an on-site (at purchaser premises) assessment centre. Exit interview design: Designing an exit interview questionnaire to be conducted with employees who resign from the purchaser. Exit interviews: Conduct telephone exit interviews with employees who have resigned from the purchaser, to obtain independent feedback and a written report. Use of video conferencing facilities. Customised reports. Specialist search. Other services: As proposed. 20

Appendix 6: RSO Recruitment services order (RSO) for temporary assignments Vacancy number: E.g. 130520 MBIE KKY 1 Date of request (YY/MM/DD), agency initials, your initials then number sequentially, or use a unique numbering system Governing agreement: This RSO is subject to the AoG services agreement relating to recruitment services between the provider and Ministry of Business, Innovation and Employment (on behalf of AoG), dated September 2012. Participating agency name: Position title: Hiring manager name: Assignment start date: Assignment end date: Brief description of assignment and skill requirement (can be attached): Timeframes for filling assignment: Estimated hourly rate: A. Job role base pay (temp) per hour: $ Hire manager email: AoG job family: B. Provider fee % of salary: % C. Provider fee $ D. On costs: $ Multiply A by B E. AOG admin fee Add A +C, then multiply by 0.01 F. Estimated total hourly rate Add A + C + D + E Other information: Billing instructions: $ $ Please note: The participating agency must approve this form by contacting the providers. This can be via email with a simple accepted or approved. 21

Appendix 7: Frequently asked questions What areas are in scope for the AoG solution? The AoG solution is centred on primary services (as delivered by AoG external recruitment providers) for the recruitment of: permanent, temporary and contractor placements; for roles in common administration, corporate and information technology job families; in Auckland, Wellington and Christchurch. The recruitment activities included under permanent, temporary and contractor services are listed in Appendix 3. A range of optional recruitment-related services (additional services) are available from AoG providers at contracted prices (see below). What roles are covered by common administration, corporate and IT job families? See Appendix 2. Can the AoG solution be used for related areas that are not included in the primary services (e.g. to recruit a role for different regions or different job families)? Yes. These areas are defined as non-primary services and can be supplied by agreement between participating agencies and providers using the same AoG ordering process (i.e. under an RSO or similar request). Non-primary services are supplied under the same general terms and conditions but pricing needs to be negotiated between both parties. What additional services are available under the AoG solution? Each provider has a range of these services available at contracted prices some are available at no cost. Participating agencies will have access to each provider s list of additional services and pricing through the panel directory. Each list in the panel directory includes agreed AoG prices, under general AoG terms and conditions. This does not necessarily indicate anything about the depth or quality of the services offered, or the relative capabilities of other providers offering similar services, (whether within or outside of the AoG solution). See Appendix 5 for the full range of additional services. Can an agency join the AoG contract for some services now and others later? No. The terms of the contract s MoU are that participating agencies use AoG providers exclusively when purchasing external recruitment services, within the scope covered by primary services. Does a participating agency have to use the AoG solution for all its primary recruitment activities? Yes. Once an agency signs the LoA to the MoU and becomes a participating agency, it is expected to purchase all primary services from the AoG panel. 22

Please note: The MoU has a process for the participating agency s general manager of HR (or someone with equivalent authority) to demonstrate to the Recruitment CoE that the panel cannot fully meet the agency s particular primary services requirement. However, the Recruitment CoE believes that the 41-strong provider panel has sufficient capability and capacity to meet AoG s collective requirements. The MoU stipulates that the Recruitment CoE may request reporting from a participating agency on the nature and value of primary services procured from inside and outside the provider panel. Does a participating agency have to use the AoG solution for all its non-primary and additional services? No. However, it might be beneficial for the agency to compare what providers can offer in these areas with other suppliers offers. How flexible are the contracted placement fees with providers? The placement fees in the panel directory are not negotiable. However, under the contract, there are three instances where a participating agency and a provider may discuss a different pricing arrangement. These are: volume-based discounts where a pre-determined volume is recorded through a RSO or similar request (e.g. there is a confirmed order for a specified quantity of placements of the same or similar nature, or where pre-determined bulk resourcing is needed for a defined project or activity) fixed-fee model for resourcing a project (e.g. 10 roles for a project at a fixed cost of $50,000) a different pricing arrangement (e.g. a single placement fee across all nine primary service lots or a more competitive pricing offer for any participating agency, based on the mutual strategic value of the relationship). Can an agency standardise the rates with one provider across lots? The AoG solution offers eligible agencies equal access to providers already competitive and contracted rates. Under the contract, there are implications for providers who offer pricing arrangements that are better than contracted rates. Providers need to be mindful of their obligation to maintain equity for all eligible agencies. Can contract terms be varied to suit an agency s requirements? Yes. The AoG solution offers flexibility around the way customer s requests for external recruitment services are briefed, agreed and delivered through to payment. The Recruitment CoE offers an RSO form for this purpose, but other formats can be used instead (e.g. e-recruitment tools). The RSO s fields are designed to capture the key elements that should to be discussed and agreed, to help maintain: assurances under the contract elements of good practice in recruitment service requests and delivery elements of good practice in the procure-to-pay process between NZ Government and providers. 23

However, the CoE recommends the following (in italic) paragraph is included, to link the alternative form to the services agreement: This RSO is subject to the AoG services agreement relating to recruitment services between the provider and Ministry of Business, Innovation and Employment (on behalf of AoG), dated September 2012. Key elements include: particular recruitment activities to be included or excluded within a service requested under an RSO (for more information, see Appendix 3) additional services to be included under the RSO non-primary services (pricing can be agreed under an RSO) timeframes for delivery of services (or parts thereof) under an RSO invoicing and payment frequency /dates the default is that a single invoice will be rendered on a monthly in arrears basis (for more information, see Appendix 4) the form and format of invoices (e.g. a consolidated electronic invoice sent to accounts payable, or an individual invoice sent to the hiring manager) volume-based discounts, fixed fee or other pricing arrangements for bulk placements confirmed under an RSO candidate ownership criteria beyond those agreed under the contract (a participating agency has five business days from the point of introduction to inform a provider that it owns a candidate under the terms of the contract) quote and estimates before confirming an RSO expenses that apply to the specific RSO on-costs as a percentage of temp base pay (for more information, see Appendix 4) variations to an RSO can be documented and agreed when changes to the RSO are needed (after the provider begins delivering services). When an agency becomes a participating agency, what happens to contractors who are on assignment through non-aog suppliers? Pre-existing contractor assignments within scope of the AoG solution (i.e. as primary services) continue until they expire, come up for renewal or are terminated. A participating agency is obliged to meet its MoU obligations to exclusively use panel providers. This applies to new assignments and any renewals or extensions of previous contractor placements, where an external recruitment service is required. Can a participating agency source varied contractors? Yes. Participating agencies can source contractors either directly or through vendor or consultancy panels (i.e. where contractor services are usually underpinned by a statement of work and contracts are released and approved through separate procurement processes). Examples of contractors are external recruitment agencies, IT vendors, direct sourcing, specialist and other management consultancies. 24

However, the Recruitment CoE believes the AoG solution s benefits make it a compelling alternative resourcing option. These benefits include: simple and flexible provider selection principles favourable fees and other pricing activity reporting standard terms and conditions candidate guarantees agreed discounts for conversion to permanent. What is the minimum term a participating agency is signed-up to the AoG solution? If an RSO is applicable to services being provided past the expiry date of the contract, the original terms and conditions those services are to be provided under will remain unchanged, unless mutually agreed by the participating agency and provider. Is an agency expected to buy from the lowest priced provider? No. Participating agencies are expected to buy from the best value-for-money provider that meets their business needs. In some cases this will not be the provider with the lowest price. Can an agency purchase outside the AoG contract if it can negotiate a better deal? No. MBIE has negotiated substantial discounts for agencies and significant overall savings for government, through the combined buying power of the state sector. Providers have agreed not to offer services included in the contract at better prices to any individual eligible agency. However, agencies are able to negotiate: volume-based discounts where there is a confirmed volume commitment secured under an RSO fixed fee arrangements for defined projects or volumes of work. Can an agency exit an AoG contract that does not meet its needs? Yes. A participating agency may exit the AoG contract under the provisions of the MoU s termination clause. What happens to existing supplier contracts once an agency signs-up to the AoG solution? Where the services fall within the direct scope of primary services, agencies can operate as per usual until the LoA is signed. To achieve the best benefits of the AoG solution, participating agencies are expected to fully transition to AoG providers and rates as soon as possible (subject to the terms of existing contracted arrangements that may need to remain in place until expiry or termination). The panel directory gives an agency the AoG fees and other information, once it signs the LoA. Who should an agency talk to if it is unhappy with a provider s performance? Contact the Recruitment CoE in the first instance: aogrecruitment@mbie.govt.nz. How do I get the latest recruitment updates? For quarterly-updated tips, FAQ and other information, visit www.procurement.govt.nz => AoG contracts => recruitment. 25

Related information Visit www.procurement.govt.nz, for information on: other available contracts including AoG, syndicated and common capability the government s Procurement Functional Leadership programme procurement guidance including: o principles, the Government Rules of Sourcing and relevant law o government model contracts for low-value, low-risk, common goods and services building a professional procurement career: core competencies, training needs analysis, subsidised training and education opportunities information for suppliers on tendering, supplying and working with government the Government Electronic Tenders Service (GETS): www.gets.govt.nz procurement planning guides, tools and templates for everyday use AoG buyer s guides with related CoE contact details for: o office consumables o vehicles o rental vehicles o external legal services o external recruitment services o advertising services o travel (air travel and travel management services) o electricity o reticulated gas o energy management services o IT hardware (including laptop and desktop computers) o print devices o mobile, voice and data services. 26