FIELD OF THE INVENTION

This invention relates to recruitment. In particular, the invention relates to a method of indemnification against recruitment fall off and to a recruitment indemnification system.

BACKGROUND OF THE INVENTION

The inventor is aware of the cost of recruiting employees and the risk of falloff associated with the recruitment process. Employers expend resources to recruit suitable employment candidates. However, there is sometimes falloff of employees after a certain employment period. Further resources and time then have to be expended to repeat the recruitment process. This can impact negatively on various aspects of the business.

The term "employment falloff" or "employee falloff" in this specification refers to an employee being employed by an employer, who then resigns before a certain period of time has lapsed. The present invention aims to indemnify the employer against this loss.

SUMMARY OF THE INVENTION According to one aspect of the invention, there is provided a method of indemnifying an employer against an employment falloff, the method including

receiving premiums from multiple contributors selected from any one or more of employers, -employees and -recruitment agents; providing indemnification to participating employers against recruited employee falloff, the indemnification being financially covered by premiums received from the contributors. The premium per employee may be based on any one or more of the type of employment, the remuneration of the employee, the type of employee placement, the recruitment fee, and any transactional amount agreed between the parties. The premium may be based on a percentage of the recruitment fee.

The method may include the step of insuring the risk of employment falloff with any one of an independent insurance underwriter and a financial institution and any other entity that is legally constituted to do so in terms of the statute.

Providing indemnification to participating employers may include providing employers with indemnification policies regulating indemnification terms.

The method may include the further step of receiving claims from employers following employment falloff. The method may include the step of refunding monetary amounts to employers.

The monetary amounts may be associated with the indemnification provided to the respective employers.

The monetary amounts may be pro-rata related to the period of employment that the candidate fulfilled. Receiving claims may include receiving particulars from employers of the circumstances surrounding the employment falloffs.

Receiving claims includes the step of assessing the claims against policy provisions.

According to another aspect of the invention, there is provided a recruitment indemnification system, which includes

premium receiving means;

an underwriting mechanism,

the premium receiving means coupled with the underwriting mechanism;

claim receiving means for receiving a claim from an employer; and compensation means for compensating the employer for loss of recruitment costs.

The invention will now be described by way of a non-limiting example only, with reference to the following drawings. DRAWINGS

In the drawings:

Figure 1 shows a block diagram of a method in accordance with one aspect of the invention, in particular the employment of a candidate; and

Figure 2 shows a block diagram of a method in accordance with one aspect of the invention, in particular the indemnification of an employer. EMBODIMENT OF THE INVENTION

In Figure 1 , certain aspects of a method 10 of indemnifying an employer against employment falloff is shown in block diagram format. A recruitment agency 14 identifies a candidate 12 at 16. The recruitment agency 14 then introduces the candidate 12 to the employer 18 at 20. The employer 18 then pays a fee to the recruitment agency 14 at 22. In the normal course of business, an employment agency will be contracted to source employment candidates and will be paid a fee upon placement of the candidates or payment will be effected at various stages of the recruitment process as agreed between the parties.

In Figure 2, any one of the recruitment agency 14 or the employer 18 pays a premium 26.1 or 26.2, respectively, to an underwriter / financial institution 24. The individual premium is based on the type of employment, the remuneration of the employee, the type of employee placement, the recruitment fee, or any transactional amount agreed between the parties. The premium received and the underwriting thereof is conducted by means of normal actuarial calculation.

The underwriter 24 provides an insurance / indemnification policy that indemnifies the employer 18 against employee falloff, which could either be to the agent 14, with employer 18 as beneficiary, or direct to employer 18, the indemnification being financially covered by collective premiums received from other contributors. The definition of falloff will include an employee not remaining in the employment for a predefined period of time [the commitment period], for various predefined reasons.

If the [declared] employee at employer 18 does not fulfil the commitment period, either the recruitment agency 14 or the employer 18 can submit a claim to the underwriter 24. The purpose of the claim is to indemnify the employer against the loss of the employee resigning and to enable the employer to repeat the employment process, if so desired.

Upon receipt of the claim, the method then includes the further step of refunding a monetary amount to the employer 18. The monetary amount may be associated with the indemnification provided as determined from the premium received. The underwriter 24 thus pays a pre-agreed claim amount back to the employer 18 at 30.2 only.

The step of receiving a claim can include the further step of receiving particulars from an employer of the circumstances surrounding the employment falloff. With the information of the employment falloff, the claim can then be assessed against the policy provisions.

The invention extends to a recruitment indemnification system, which includes premium-receiving means by means of which insurance premiums can be collected from a group comprising any one of an employer and a recruitment agent as described above. The system includes an underwriting mechanism, with the premium receiving means and the underwriting mechanism being coupled to each other in terms of the actuarial methods being employed to provide the required indemnification against the premium paid.

The recruitment indemnification system further includes claim-receiving means for receiving a claim from an employer. The claim receiving means can include prescribed forms, procedures and systems for obtaining all the relevant information from the employer. The output from the claim receiving means can be used to assess the claim against the provisions of the claim policy.

The recruitment indemnification system further includes compensation means for compensating the employer for loss of recruitment costs after an assessment has been made against the claim policy. The compensation means may be in the form of a payment system, which can effect payment upon completion of the assessment.

The inventor is of the opinion that the invention as described and illustrated provides a novel method of indemnification against recruitment falloff and to a novel recruitment indemnification system.