Hiding behind the Preferred Supplier List (PSL)

Nichola Davies, one of the Managers at Headstar, reflects on her 14 year experience in internal recruitment, specifically her love/hate relationships with the Preferred Supplier List (PSL)…

The PSL.

How do you feel about your PSL? Previously the preserve of the FTSE Top 100, now it seems every company in the country has one.

But, is it really a good idea to be restricted to which suppliers you can use for a year?

Or, would it be better to have an open call for all and sundry to contact you?

Typically, the PSL includes an ever long list of agencies. You might have inherited it years ago. Is it even still fit for purpose?

The PSL was one of my love/hates when I was in internal recruitment.

 But being honest, it’s also something we hide behind all too often.

“The PSL isn’t up for review until next year.” We’ve all said it; I know I have many times. It’s the easier, albeit lazier, way to get rid of an agency who is pestering you on the phone.

Instead, how about being honest? “Actually, our current agency partners are working well.” Or, “We only use agencies for our executive roles.” I’m sure a lot of agencies, (or the decent ones anyway), will respect that. Plus, it would give you the opportunity to pause and consider if what you’re saying is actually true. Or is time to revisit how the PSL is used in practice?

Perhaps instead of having a rigid annual PSL review, a set of agreed KPIs and deliverables would be better.

Then if your partner is not delivering what you expect, you can go out to tender earlier than planned.

Or indeed, if the goalposts keep changing then it may be that you have to adapt your approach too. It’s unlikely that your PSL-approved agency that is great for recruiting HR assistants will be much help in headhunting a Finance Director (but I do happen to know a certain specialist finance recruitment agency that could help with that…)

You get what I’m saying.

The PSL is a great tool 90% of the time. But, for that other 10% when you feel boxed in to using limited options – feel empowered to think beyond the PSL. The results may just surprise you.