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Episode 169 - Should the recruitment industry have a baseline standard for applicant closure?
43 Plays3 hours ago
RNA episode 169 has news for 14 July 2026, including the dramatic collapse of Hudson’s original rescue plan as ATO legal action and the Victorian Labour Hire Authority force a complete rethink, with HiTech now emerging as the preferred bidder. We pay tribute to recruitment pioneer Bill Pollock, the visionary founder of Drake International, examine the final days of the ICAC hearings into recruitment corruption at the University of Wollongong, discuss the remarkable global career of former Randstad Enterprise CEO Michael Smith, and analyse Hays’ latest results as Australia's recruitment market continues to face a challenging and uneven recovery.
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Transcript
Introduction to Wingman Recruitment
00:00:06
Speaker
You know who helps recruitment agencies recruit, Adele? It's Wingman Recruitment, Ross. Flexible recruitment support built by recruiters for recruiters. More capacity, less pressure, better results.
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Learn more at wingmangroup.com.au and visit the services tab.
Hudson's Docker Plans Halted
00:00:23
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Welcome to Recruitment News Australia. This is the news for the 14th of July, 2026. I'm Ross Klenit.
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And I'm Adele Last. Adele, a huge update on the Hudson Voluntary Administration. On Friday, the administrators advised creditors the original docker will not proceed. This development is largely driven by the actions of the ATO and the Victorian Labor Hire Authority.
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The letter to creditors outlined several key events that have derailed the docker, which creditors approved on the 24th of June.
Impact of License Cancellation on Contractors
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As previously reported by RNA, just two days after the creditors' meeting, The Victorian Labor Hire Authority issued a notice of cancellation on the 26th of June cancelling Hudson's licence because the company had failed to comply with several regulations.
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As a result, Hudson's 251 contractors working in Victoria, representing 23% of its active contractor workforce, had to be transferred to either their host employer or another labour hire provider.
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Further complicating matters, the Deputy Commissioner of Taxation filed a notice of appeal on the 30th June which is listed for a directions hearing on July 26th. This appeal seeks to overturn the court order of the 18th of May and seeks to have the administrators or Hudson repay amounts received from their financier, Scott Pack, that would otherwise have gone to the ATO.
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The Commissioner has also explicitly stated no commitment to financially support Hudson or the administrators in these proceedings. The ATO's legal action has created so much uncertainty that the financial backers of the original docker have told the administrators they will not proceed.
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They said the ATO's actions, including its appeal and garnishing notice, made it impossible to meet the ATO requirement in time. As a result, the docker cannot go ahead as planned.
New Proposals from WorkPak and Hitech Group
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Subsequently, the administrators invited the two companies whose docker proposals were unsuccessful, WorkPak and Hitech Group, to submit revised offers.
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Both companies lodge new proposals on Monday the 6th of July. The administrators have advised that HITECH's proposal is the preferred option and have authorised due diligence to begin as soon as possible.
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Creditors have been told that a binding offer from HITECH is expected in the coming days. Well, so much has happened in the past two and a bit weeks and there's still a lot to play out. This sequence of events is a sobering reminder that despite creditor approval, Regulatory and legal pressures can ultimately dictate the outcome of such arrangements.
00:02:59
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R&A will provide more updates on the Hudson administration as they occur.
Legacy of Bill Pollack in Recruitment Industry
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Bill Pollack, the founder of Drake International, passed away peacefully last Tuesday at his home in Monaco at the age of 97. Born in Winnipeg in 1928, the youngest of nine children of Austrian and Polish immigrants, Pollack grew up in the Great Depression.
00:03:21
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As a teen, he took a job mowing lawns, but when the man he worked for didn't pay him, he and a friend launched their own lawn mowing service. By their second year in business, they employed 22 people.
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In 1951, alongside co-founder Jim Shaw, the then 23-year-old Pollock launched Office Overload. It was a simple idea at the time, helping businesses manage fluctuating workloads with temporary workers. The concept effectively laid the foundation for the recruitment and staffing industry we see today.
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Renamed Drake International, Pollock grew the business to operate in 14 countries with a partner network spanning 128 more. But despite his global success, those close to him say Pollock remained humble, often stating his only goal was making it a better world.
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He was a highly hands-on founder who remained active in his business long after most founders had sold to enjoy their wealth in retirement. The then 95-year-old Pollock only announced his retirement from the Drake Board after 73 years as a director in 2024.
00:04:24
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Pollock's vision of a global business community seems unremarkable these days. However, as one of the young president's organisation's earliest members and its longest tenured, Pollock helped shape the YPO into a global, inclusive and peer-powered force. A pioneer in international expansion, he was one of the first to imagine YPO as a global community, convinced that business success and peace alike required leaders to reach across borders. In the middle of last century, Pollock saw the future as a closely connected world, investing in a global communication tool called Picture Talk, which was an early predecessor to video conferencing, and the email system known as The Coordinator. He saw a connected world long before the rest of us did, and he was remarkably ahead of his time regarding social progress as well. Decades before diversity and inclusion became corporate mandates,
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Bill was a fierce advocate for women in leadership. and Today, nearly 80% of Drake International's global leadership team is women, a testament to his belief that talent and character should always come first.
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Pollock also had a close connection to Australia and not just through Drake ANZ. Pollock was a regular visitor to Australia, proud of attending 30 consecutive Melbourne Cups.
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Pollock was also mentored to Hungry Jack's founder, Jack Cowan. and was an early shareholder in Cowan's business, Competitive Foods Australia, which became the largest shareholder in global pizza chain Domino's. Cowan's niece, Karen Meredith, succeeded Pollock as Drake's global CEO in 2024. Bill Pollock leaves behind a legacy of tens of millions of jobs created and the status as a pioneer and legend of the global staffing industry.
Corruption Investigation at University of Wollongong
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Three weeks of evidence concluded with an emotional final day as the ICAC public hearings into corruption in recruitment processes at the University of Wollongong wrapped up on Friday.
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Former Chief Governance Officer Alyssa White admitted her conduct, which included helping friends through recruitment processes, had effectively corroded the university's culture.
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It was quite a moment when Commissioner Paul Lakatos suggested she had placed her finger on the scales to favour certain candidates. making the entire process unfair and opaque. She agreed with the assessment and tearfully explained that she'd acted out of desperation to secure staff who could work in such a difficult environment.
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The inquiry also dug into the proposed $400,000 role she expected to secure without a competitive recruitment process, even referring to it in papers as my role, despite the obvious conflict of interest.
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White agreed she understood she was in a conflict of interest position but resisted suggestions she should have removed herself from drafting the proposal about the expanded role. The inquiry also heard Ms White remained in contact with the then-Chancellor Michael Still about the role even after concerns were raised and while discussions were underway about whether there should be a competitive recruitment process.
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Now that the public hearings have wrapped up, Council Assisting Emma Bathurst has until August 7th to file final submissions. It is expected the formal findings from the inquiry will be tabled in the New South Wales Parliament by the end of next
Michael Smith's Departure from Randstad
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month.
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One of the most senior executives from Australia in the global staffing sector, Michael Smith, has left Randstad. In an update posted to LinkedIn on Friday, Smith announced it was his final day as CEO of Randstad Enterprise, the company's RPO business based in Texas. Growing up in Sydney's western suburbs, Smith attended Macquarie University in the early 2000s, graduating with a Bachelor of Business before he joined Randstad in Parramatta as a trainee recruitment consultant in early 2005. He progressed rapidly through the ranks with promotions to Parramatta Office Manager within two years, GM of Randstad, New South Wales two years later, and to New South Wales Queensland GM 18 months after that.
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At the end of 2012, Smith moved to Singapore and by late 2015, he was again promoted, this time to MD of Randstad Southeast Asia. Less than three years later, he moved to Randstad's head office in the Netherlands as Randstad Enterprises MD for Europe, Middle East and Asia.
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Other promotions followed with his final role of CEO of Randstad Enterprise commencing in January 2021, which included serving as a member of Randstad's global leadership team. Under his leadership, the company focused on partner for talent strategies, moving beyond simple staffing to solve complex workforce challenges for multinational clients. He was also a champion for neurodiversity in the workplace, particularly through partnerships that highlighted the unique skills dyslexic thinkers bring to the AI era.
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As for his immediate future, Smith stated he plans to take the northern summer of 2026 off with his family before deciding on his next professional chapter. I'm sure he won't have any shortage of offers given he's only in his mid-40s and potentially has another two decades of his professional life ahead.
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Or five more decades if he emulates Bill Pollack at hell. For the time being, we can admire and acknowledge Michael Smith for being a shining example of what global career possibilities are available to talented people in the
Hayzane Zed's Financial Report
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recruitment sector.
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Another tough quarter for Hayzane Zed with net fees declining 2% year on year and the quarter ending 30th of June, 2026th. Temporal contracting was down 2% and PERM was down 1%. Encouragingly, private sector net fees increased by 5%.
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However, that was offset by public sector net fees falling 14%. fourteen percent By region, Victoria was down 12%. New South Wales declined 7% and the ACT dropped 22%.
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Good news in the West with WA up 17% and in Queensland which climbed 9%. At the ANZ specialism level, Hazer's largest construction and property increased by 2% while their second largest IT declined by 9%. Accountancy and finance was up 6% and office support grew 3%.
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Consultant headcount decreased by 39 consultants, 6% in the quarter and by 8% year year. Hayes ANZ reported fee earners as at June This represents decline from reported three years ago.
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The good news for the head of Hayes ANZ, Matthew Dickerson, is that the results for his division were substantially better than those of the other two major Hayes worldwide divisions. Germany net fees dropped 7% and Hayes UK and Ireland reported a 8% decline in net fees. The Hayes board announced they currently expect the full year pre-exceptional operating profit, ending 30 June 2026, will be at the top end of the £37 million pounds to million pound range.
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Hayes shares are currently trading on the London Stock Exchange at 42 pence, a 45% premium on their historic low of 29 pence in mid-April, although still a third lower than a year ago and about half of what they'd traded at in July 2024.
Standards for Applicant Closure in Recruitment
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And that's the news for the 14th of July, 2026. Stay tuned for Question of the Week.
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Question of the Week. Should the recruitment industry have a baseline standard for applicant closure? This is an interesting topic. Ross, where does it come from?
00:11:41
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It came from ERE, and that is a US-based recruitment sector website. And last week in their email, they highlighted Jerry Crispin. And for those of you who have been around a while, you'll know that his business career crossroads is a TA community. And he's generally regarded as a bit of a legend. And certainly one of the things he spent his whole life advocating for is a better candidate experience. Now, he's leading the development of a proposed baseline standard for applicant closure, which is a document intended to establish the minimum that an organisation owes every person who applies for a job.
00:12:30
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The basic obligation is simple. Tell applicants when they are no longer being considered. And this would be required for 100% applicants regardless of application volume or recruiting stage.
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And as k Crispin said, um we're trying to draw a line in the sand. Above this line, lots of opportunity for best practice. Below, it's unacceptable and you should be called out.
00:12:57
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Oh, it's a big call, this concept, actually. It's interesting that you use the term, or he uses the term, closure, as a means of, I guess it's a nice way to say, reject the candidate, that's right I suppose. That's right. It is. And he's talking, i would understand, specifically more on the talent acquisition employer side, but we want to raise this to our own industry as recruitment agency sector. Is that right, Ross? Yes, completely. I mean, personally, I think we should hold ourselves to a much higher standard than the end user, the employer or the client. I believe
00:13:33
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This is the one of the things that the recruitment industry should aspire to, to have a standard where candidates regularly say, I hear back from an agency every time I apply, and that's typically not the experience I get from an employer.
00:13:51
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Well, I think a lot of recruitment agencies would be listening to this and saying, but we do that. We do reply to every candidate that applies to the job. Our system does that. it automatically acknowledges receipt of the application. Isn't that enough?
00:14:05
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Well, okay. so let me ask you, Adele. i'm um' I'm going to put a three-stage question to you because you're really at the pointy end of this representing an ATS in the Australian market. So, first firstly, what percentage of applications are that are sent to a recruitment agency receive at least an acknowledgement that the application has been received by the recruitment agency?
00:14:35
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Well, as I said, from a tech perspective, the availability or functionality to be able to acknowledge receipt of ah an application candidate sends an application, the ATS system acknowledges that, has been available for some time. And I would say to guess at least 80% of recruitment agencies have that set up.
00:14:54
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Okay, great. So next question. So what percentage in their response would say, thank you words to the effect of, thank you for your application unless you hear from us again, your application has been unsuccessful?
00:15:09
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Oh yeah, that's the standard response for us. I would say 100% of that 80% is sending some sort of letter that says that that sort of wording, has that wording. Wow. Okay. And so what percentage of applications that have been assessed and a candidate has had either a deep phone screen or an interview, would you say would receive a rejection from the recruitment agency, either verbal or via the system?
00:15:41
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ah Well, this one gets far more complicated. i would say this number is very low and I'm basing this on the conversations I have with recruitment agencies every day. i would base this on the consulting work that I do in looking at people's recruitment processes and and workflows.
00:15:58
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And of course, as you said, in working with a new AI CRM that I do now in understanding what's available with the technology It's a very low percentage, Ross. Really? know, it could be even as low as 10% of agencies are sending any further rejection after they've assessed the candidate. I think they feel like that initial acknowledgement of the application is enough and they don't really spend any time going back. And I'm generalising here. I know there'll be some people listening saying, but we do that. ah You'll be very few um in that group that would actually take the time to go back
00:16:36
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after you've assessed a candidate and progressed with the rest of the application process or a recruitment process to go back to the candidates that you're not processing and reject them formally.
00:16:47
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Wow. Wow. So, i mean, this this, it kind of confuses me because let me take you back to the first seven years of my recruitment career where candidates applied with a cover letter and a resume via the post, don't laugh, and, and and I'm dead serious here, we rejected candidates with with a letter that we sent in the post, every candidate. Like that was our standard.
00:17:15
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And when I think about the time and money and resources that involved, and we did it back 30 plus years ago, and people can't, in my view, seem to check a few boxes and click send to auto reject people, it it it just baffles me. Why is it happening at all?
00:17:36
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I did laugh at that um story, Ross, I'm sorry, um because it is ah interesting to think and I'm sure many of our listeners will be hearing that. Some will acknowledge and and be nostalgic about what you're mentioning. Others will say, what do you mean you sent a letter? But, yes, we absolutely did do that. ah Maybe that's part of the demise of Australia Post, whole other argument, of course, separately. um But, yes, nowadays it should be the click of a couple of buttons to to respond at any time in the process and even more so with the advent of AI screening within systems now as well. So the AI is providing some reasonably detailed feedback about each applicant for you to assess as part of the human in the loop process, but that could potentially then be used to send to the candidate to say, these are the areas we felt you were deficient or these are the areas where you didn't quite meet the criteria and we're not going to proceed and we wish you luck.
00:18:34
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It should be very, very easy nowadays to do that with most tech. So what does it take from a human, not just in the loop, but at the top? So with the owners that you've had something to do with, where that is the standard in their recruitment agency, how do they accomplish that? What what sort of mandate do they set for their people? Or how do they audit what goes on to ensure that there's high compliance from their consultants with respect to this standard?
00:19:06
Speaker
I think those that are managing this successfully are going to probably have a lower volume of candidates that they're processing. I think that's a factor that has a big impact on it. If you are advertising a job and you're getting in the, you know, 300, 400, 500 applications, that's the starting point where most people sort of say, I don't have the time to go back and respond to each one of those. I'm only taking 10 through the process, the rest I'm rejecting.
00:19:34
Speaker
I think it's where it's a more specialised field and they have fewer applications, as I said, so they can spend a bit more time in doing that. And maybe they even have that sort of support to be able to, it is still required, you know, it still requires you to click a button and send it off. So maybe they have greater administrative support in order to do that. But it should definitely be easier than it used to be at any stage in our whole career as recruiters, the whole history of recruitment. It it is easier now than it ever was. and And that to me is my point, that it is so easy. It doesn't take a lot of time. And the reality is every candidate that applies gets rejected except the candidate who's offered and accepts the job.
00:20:19
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So it is something you have to close off with every candidate. And surely when the decision is made that this candidate is no longer under consideration, it's not hard to take the next step to advise them of that fact.
00:20:34
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Definitely not hard, but definitely not standard practice. And I think a lot of people will be pushed around, you know, there'll be all sorts of excuses, time, effort, you know, the candidate coming back to argue the point, all of these things will be lots of reasons why people wouldn't do it, wouldn't be doing it. Well, think that's BS, frankly, because, okay, that may happen, but surely that's going to happen in a minority of cases.
00:20:59
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And relatively easy to deal with, i I would have thought, considering the upside of enforcing that standard in terms of the reputation you have amongst candidates for consistent, reliable and timely notification of rejection.
00:21:18
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I agree with you on that, Ross. I think this could be a really great way to further define our profession, to find a way to you know distinguish ourselves in the market, particularly from a candidate perspective. You know, a candidate more is more likely to want to deal with a recruitment agency, work with a recruitment agency if they know they're going to get a response. that that you know That would be a wonderful world we live in if candidates say, I'd rather apply through the recruiter because at least I know where I'm going to, you know, when i where I stand and what's going to happen. as opposed to, you know, when I apply direct to an employer, I don't hear back or I hear back months and months later. I am keen to hear from recruitment agencies that have this high standard that we're aspiring our industry to. So if you're one of those agencies, please, in our LinkedIn update for this episode, please post what your standard is, how you've accomplished it. And we'd love to hear any feedback that you hear from candidates about that standard.