Recruitment Tenders: Getting onto the Government Panel

The War for Talent

Government departments and State-Owned Enterprises (SOEs) rarely recruit directly for specialized roles. They use Panels of Recruitment Agencies. Getting onto a panel (usually valid for 3-5 years) is the golden ticket. Once approved, you receive ad-hoc requests for CVs without having to tender again.

Permanent vs Temporary Services

Tenders are usually split:

• Permanent Placements: You find a CFO or Engineer. You charge a % of annual Cost to Company (CTC).
• Temporary Employment Services (TES): You provide admin clerks or general workers. You employ them (they are on your payroll) and you charge the client an hourly rate + markup. This is cash-flow intensive as you must pay wages weekly/monthly while waiting 30 days for the government to pay you.

The Fee Structure Battle

Competition is driven by the Placement Fee %. Standard private sector fees are 15-20%. In government tenders, efficient agencies are bidding 8-12%. Warning: If you bid too low (e.g., 5%), you cannot afford to subscribe to premium job portals (PNet, LinkedIn Recruiter) or headhunt. The client will eventually stop using you because your candidates are poor quality.

Compliance: APSO Membership

Most tenders mandate membership of the Association of Personnel Service Organisations (APSO). This guarantees the client that you follow ethical recruiting practices and labour laws (LRA). A valid APSO certificate is often a 'Go/No-Go' gatekeeper.

Conclusion

Don't try to be a generalist. The highest margins are in Specialist Panels (e.g., 'IT Recruitment' or 'Engineering Staffing'). Convince the client that you have a unique database of scarce skills, and your fee percentage becomes less important than your ability to deliver.