New research from the American International Recruitment Council claimed to give a fresh insight into what makes an agent-institution relationship work well, with a strong compensation structure and bonus availability shown as an important factor.
The first figures released from AIRC’s survey of 163 institutions and 50 agencies suggest that institutions which pay bonuses to agents are substantially happier with the outcomes compared to those which do not.
Although only 26% of institutions pay bonuses to agents that exceed enrolment targets, there is a 25% increase in the perceived effectiveness of the agency relationship.
“But it takes not just time, it’s a dollar investment”
Of those which do pay bonuses, 77% replied that they “strongly agree” agencies aid international recruitment, whereas that figure dropped to 52% among those who do not pay extra for achieving better results than expected.
Mike Finnell, AIRC’s executive director, told The PIE News the gap – and the gap in understanding of agency work – is down to inexperience. And as experience is gained and the benefit of paying bonuses is seen, the US market will become more like the Australian or Canadian market.
“Agency use is less prevalent in the US market, but I think it’s maturing. And as it matures – similar to the other big markets, Australia, New Zealand, Canada – that have more comfort working with agencies we’ll see the dynamics of agency-institution relationships… it increases in quality and number [of enrolments],” he said.
[Paying bonuses] is not uncommon in other markets, and it was verified by this research,” Finnell added.
When asked if the agent relationship helped gain qualified candidates, the numbers dropped – but the gap between the answers from the two groups of institutions grew.
Only 15% of institutions that do not pay extra said agents gave them access to more qualified candidates, but 30% more (45% of respondents which pay bonuses) “strongly agree” that agents boost the numbers of qualified candidates.
Furthermore the research carried out by Intead found that the certification of agents played a large role in the end satisfaction of client institutions.
According to the advance results as seen by The PIE News, institutions who utilise the services of AIRC certified agencies were four times more likely to be “very satisfied” with their agent enrolment outcomes.
Among the group of institutions rated “very satisfied” overall by AIRC and Intead, 50% told researchers that AIRC certification was important when selecting which agent or agency to use.
The message from the research, Finnell said, is clear.
“It’s a two way partnership, not a one way street. Every week we get a call from an institution asking for help to double international recruitment. Well, we say it’s not going to happen. But when you think about all the tool in your portfolio, agency use can be a viable, significant part of the portfolio,” he told The PIE.
“But it takes not just time, it’s a dollar investment.”
