RECRUITMENT & CO Summer 2021 The official publication of
The Association of Professional Staffing Companies in Australia
Our 2021 Award winners recognised
UK market stabilising
The Great Resignation
Thank you to our 2021 Premium Partners
Thank you to our 2021 Affiliate Partners Achieve Corporation APositive Workforce Finance Australia PEO Ayers Management Bizpay Group Bookssorted BrokersOnline Certex International Daxtra Technologies FastTrack Gallagher HHMC Global Just Pays Middle Office PayMe Australia
Pendragon Management Platinum WFM Procuret RatesCalc Ready Set Recruit Legal Red Bid SDP Solutions Seek Sentio Health Sovereign Private Staffing Industry Metrics TalentVine Vincere WorkPro Younique Coaching
Click here to find out more about Partnering with APSCo in 2022
What's inside?
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12 21
6 From the APSCo Chair: Stephen Smith
11 Australian economy set to undergo a strong recovery, but Omicron a threat
16 International market update: UK market stabilising
21 The winners of the 2021 APSCo Australia Awards for Excellence
29 It's time to take stock of your legals writes Martin Richardson
30 Workforce compliance solutions for the road ahead
32 Risk and reward in recruitment
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Recruitment & Co is published by the Association of Professional Staffing Companies Australia (APSCo Australia). Editorial submissions: carly@apscoau.org Advertising enquiries: carly@apscoau.org Membership enquiries: paul@apscoau.org
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A MESSAGE FROM OUR MD
What a year Lesley Horsburgh Managing Director APSCo Australia I don’t think I’ve ever seen a year draw to a close with such buoyant market conditions. While finding talent continues to drive the general topic of conversation, I’m certain our industry will end the year feeling positive – albeit a little weary. It’s been a significant year for APSCo too as we continue to strengthen our foundations and build a stronger Membership community. I’m delighted to have welcomed some significant partners this year, not least Gadens, Squire Patton Boggs, and Westpac – with more influential brands ready to announce in 2022. It is these partnerships that enable us to fulfill our Member needs and ensure we keep our APSCo community up to date with critical and relevant information. The launch of our annual conference; Emerge, along with our focused committees and networks has enabled us to drive engagement among Members – not just within the ranks of management or at the coalface of recruitment but across key roles in finance and in-house counsel. 2022 will see the launch of new committees across NSW, VIC, and QLD – with an eye on other regions as necessary. Our conference is planned for a return in May and we hope to reveal some further plans to address the ongoing need to promote our industry as a career of choice. Our webinars have earned us some fantastic feedback during the year and we are fast becoming known for our strong content and a real sense of collaboration - I’d like to thank all of those speakers and contributors who have worked with us during 2021 to deliver a calendar of events that we are extremely proud of. Many of you will know we undertook some work to revamp our Certification program, releasing six core modules that build a quality foundation for learning among recruitment professionals. As clients continue to focus on best practice and a standard of service that is fully compliant we expect our program to move from strength to strength. Working with our Members to fulfill our own objectives in delivering quality learning will be a big focus for us in the New Year. With that, all that is left is to thank each and every one of you for your participation with APSCo this year, I wish you all a very safe and happy holiday season. Thank you to the wonderful APSCo team; Carly, Gillian, Janielle, Josie and Paul – not long ‘til we can put our feet up! To our wonderful Board of Directors – your commitment and passion is greatly appreciated.
LESLEY HORSBURGH APSCo Australia Managing Director RECRUITMENT & CO | 4
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A MESSAGE FROM APSCO'S AUSTRALIAN CHAIR
Member engagement has never been greater With 2021 closing out on the promise that international borders will begin to open this side of Christmas, we could well see pressure on talent start to ease next year. Since I started working in Australia in 1999 these general levels of skills shortage across so many sectors have never been seen, both in the markets we place talent into and in our own recruitment markets. APSCo has looked to support our industry with these pressures through many initiatives: the relaunched Recruitment Certification program has been well received with record numbers of new applicants looking to upskill. Through the program recruitment companies are achieving increased professionalism, but also increased engagement with their staff as they look to invest in staff development.
Steve Smith Director, Sirius People
Through our partner network, APSCo has continued to support our members through the complex employment environments caused by COVID, through webinars, news alerts, and advice, helping shape the nature of the recruitment employment landscape of greater flexibility and hybrid work environments. I don’t think ever before have members needed the voice of support, the guidance, and the networks that APSCo has provided in 2021. I also don’t think ever before have members been so engaged and valued the relationship with APSCo. I have heard many recruitment owners and managers talk about how much value they have received this year. This is great to hear that not only is APSCo providing the right experience, but also that it is being recognized by those most important. Looking to 2022 we are looking forward to strengthening the relationships with our partners, whilst supporting our members with events, products, and initiatives, some in the planning stage and others due to go into production in the early new year. 2022 we hope is the year when we can get out and see our members more. Although technology and the virtual world have opened up new ways of doing things and kept us connected, we really look forward to getting back to seeing people in person more, and we hope you will join us at events through 2022. Finally, before signing off I would just like to say thank you to all of those who have contributed to the achievements of APSCo in 2021 in supporting its members and the wider recruitment industry. Thanks to all of our affiliates, sponsors, and partners, thanks to all of the board members for volunteering their time to APSCo, and most of all thanks to Lesley, Carly, Gillian, Janielle, Josie, and Paul for all of your hard work and support through the year. To everyone, I hope you get the chance to relax and reflect on what has been the strangest (and one of the busiest years) we have ever had. Until next year!
STEVE SMITH Director Sirius People, APSCo Australia Chair
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ANTHONY WHYTE- TALENT
The Great Resignation What are the triggers causing this global phenomenon? General Manager at Talent International and APSCo Vice-Chair, Anthony Whyte explains.
Anthony Whyte General Manager, Talent One of the things that great, intuitive leaders do is watch global trends, especially in markets such as the United States and United Kingdom, specifically for insight of what is likely to occur here in Australia in months to follow. Perhaps the most topical talking point (other than COVID-19) is around the Great Resignation.
So essentially, the Great Resignation is being fuelled by a major shift in how people think and go about their work and their lives. Many people are choosing flexibility, working less hours, and taking on less responsibility over career ambition and long hours.
So, what are the triggers causing this global phenomenon?
The pandemic has resulted in people’s ability to work from home or remotely, cutting out commutes, allowing greater flexibility, and being able to spend more time with family and friends. Not surprising, workers won’t give this up easily and if companies don’t provide them, people will resign.
COVID-19 in simple terms has changed the way we work. Many employees were forced into flexible working arrangements, and unsurprisingly they liked the flexibility that it brought.
My concern is that we are seeing people quit their jobs without anything lined up. They are tired due to too many video meetings, additional workloads and just feeling underappreciated.
We have seen more than 15 million Americans quit their jobs since April 2021 and experts believe it will hit Australia around March 2022 (if it isn’t here already).
There is now a clear “shifting of power" from employers to employees. Companies that will win the war for talent will be: where there is clear purpose and meaning, offering competitive salaries and hybrid working arrangements, those that listen and engage their staff, offering training and skills development, the ones with a true company culture that clearly resonates with its people.
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STEPHEN VENESS - DAVIDSON
A perfect storm As 2021 wraps up, the natural tendency can (and often should) be to reflect on the year that has been. Despite border closures and the many challenges we have seen and experienced, the markets within energy, utilities and infrastructure, in particular, have charged forward, and the need to increase the capability and capacity within has been huge priority for all. Stephen Veness, Group Manager - Strategic Partnerships at Davidson annd APSCo Director, writes. What is equally exciting, is that the factors driving the growth of these markets are set to remain for a long time. A ‘perfect storm’ of: The major energy transition toward a low/zero carbon future is in full swing and gathering momentum. Wind, solar, battery storage, hydrogen and a more connected energy system; Massive government funded investment nationally (in both metro and regional areas) in public infrastructure, with rail, light rail, road improvements and aviation; Continued evolution of the utilities space, with access to affordable power and a sustainable water infrastructure; Investment in social infrastructure to support a growing and ageing population;
The small matter of the Olympic Games coming to SEQ in 2032! Such market conditions will create opportunities for many APSCo members across all sectors and despite the challenges that certainly exist…it is hard to argue that the glass is anything but ‘half-full’! 2022 and beyond will undoubtedly see the market continue to evolve as the expectations of professionals working within these highgrowth sectors drive changes and employers aim to provide a true point of difference to stand out. Borders will (hopefully) open up, talent will become more mobile and the competitive nature of the market will most likely intensify! It has been a big year for APSCo too, with Lesley and
Stephen Veness Group Manager - Strategic Partnerships, Davidson the team having a positive impact on our industry. I was fortunate enough to recently represent APSCo at a meeting of a major Procurement Advisory Group in QLD. Getting ‘air-time’ with Ministers, Director and Deputy Director Generals and other major industry bodies was fantastic and as this evolves into next year, should give our members in QLD (and nationally) a voice with those who are charged with shaping the policies and landscape within with we operate. So in summary, this year has been a busy one and next year shows no signs of slowing down. So the end of the year seems like a great time to appreciate everyone who has contributed and worked so hard (in many cases in very difficult circumstances) to keep our businesses moving forward, to relax and recharge, and to prepare for what promises to be an exciting new year. RECRUITMENT & CO | 9
JOHN MCCLUSKEY - WHIZDOM RECRUITMENT
COVID you have a lot to answer for Don’t get me wrong I have always been a strong supporter and still are of flexible work, work from anywhere, work from home and work-life balance. But believe me, it was far easier prior to COVID when we were in the minority, but now it’s becoming more mainstream. John McCluskey, Managing Director at Whizdom Recruitment and APSCo Director, deliberates.
Like... Reduced travel time and saving on travel and parking. More flexibility to have a better work life balance, can put a load of washing on during the day. Pick the kids up from school, take the dog and yourself for a walk. Employer can reduce office space and save rent and utilities Workers will celebrate the change, show loyalty to employer, be financially better off and improve efficiency because there wellbeing has increased. Hold on, just taking off my reality check glasses? So now home is a workplace, and employers have an obligation to keep their workers safe while at work.
So now home is a workplace, and employers have an obligation to keep their workers safe while at work. So, this now means I now need to ensure my employees are safe at home and work, via two workplace assessments, provide an ergonomic desk and chair, dual monitors, and whatever else they cannot carry regularly from the office if they are working a hybrid work pattern. So, my costs have gone up and what about utilities and internet should we be paying for those? Workers compensation does that cover your staff at home, and now to and from both “work” locations? Are they required to check in at home via a COVID app and other family and visitors to the home? You laugh I hear. But we know, or you
John McCluskey Managing Director Whizdom Recruitment should know, that if a worker catches COVID from the workplace and not all precautions have been taken, the employer may be liable, so does this apply to those now working from home, and what if they do unfortunately catch COVID, have a slip, trip, hurt back lifting that washing at home on work time, are we as the employer now responsible? What affect is this now having on my insurance premiums? As recruiters we are seeing a large amount of people only interested in working full time from home or remote and requesting salaries and contract rates that are excessively more than they were previously being paid prior to COVID while in controlled office spaces. My response has been, so if this job can be done 100% remote, in theory this job can be done by anyone and anywhere in the world. So, are you the best person in the world for this role and the most cost effective? Food for thought ….
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Australian economy set to undergo a strong recovery, but Omicron a threat Australians in NSW and Victoria are unleashing pentup demand as they emerge from lockdowns. A special insight for Recruitment & Co readers from Westpac Group Business Bank Chief Economist, Besa Deda.
Retailing spiked in October. Consumer confidence is elevated. However, the new Omicron variant of COVID-19 has thrown up concerns about the growth outlook, especially if vaccines prove ineffective and infections more severe and transmissible. The rise in uncertainty could engender caution among consumers and cloud the outlook for consumer spending and with it, the growth outlook. However, it is too early to say because much about Omicron is still unknown, including the efficacy of current vaccines against this new strain. The growth outlook remains favourable provided Omicron does not lead to extended, fresh lockdowns and restrictions in Australia and major economies around the world.
We are anticipating solid growth next year of well above the long-run average, underpinned by consumer spending. The challenges for businesses continue to be rising inflationary pressures, including for raw materials and labour. Policymakers view these pressures as transitory. Supply chains have been disrupted by lockdowns, restrictions, and the move towards the consumption of goods. Policymakers are expecting these pressures to ease as vaccination rates rise, economies reopen, supply ramps up, and consumption patterns switch back towards more services and fewer goods. Omicron increases uncertainty around how quickly this might occur.
Besa Deda Business Bank Chief Economist Westpac Group There also remains a risk that some of these pressures could prove sticky. Amid labour shortages and rising job ads, the labour market has remained resilient. The unemployment rate rose only modestly during the Delta lockdowns and is set to possibly fall under 4% at the end of next year. An unemployment rate sub 4%, on a sustained basis, has not been recorded since the 1970s! The improvement in the labour market will help consumer confidence and spending, in turn, keep economic activity robust over 2022. However, inflationary pressures and the tightening of the labour market means that interest rate markets continue to doubt the Reserve Bank willpower to wait until 2024 to start raising rates. Indeed, markets are priced for a rate hike as soon as August 2022. Our central-case scenario is for a rate-hike cycle to start in early 2023. RECRUITMENT & CO | 11
ASSOCIATION NEWS
Welcome Janielle Wilson APSCo Australia has welcomed a new member of the team - Janielle Wilson, who joins the Association in the role of Member Development and Service Officer. With a wealth of experience in curriculum and assessment design and validation, Janielle will be focusing on building and further developing APSCo's Recruitment Professional Certification Program to meet the ongoing needs of the professional staffing and recruitment industry. If you would like to find out more about APSCo's Recruitment Professional Certification, email janielle@apscoau.org
Janielle Wilson APSCo Australia
APSCo's first group of Advanced Recruitment Professionals
Pictured from left: Tanya, Kim, and Kylie from Keane Consulting. Congratulations to APSCo's first cohort of Advanced Recruitment Professionals, who have successfully completed APSCo's 4-part course with Martin Richardson to advance their knowledge on how to approach legal issues in their day-to-day dealings with clients and contractors. Congratulations to Josh Zanetti, Kristi McMillan, Sharon Kendrick, Joe Smith, Jeni Howard, Nicole Hermansen, Matias Grdin, David Fletcher Ly, Ellen Dorizzi, Tatevik Hovakimyan, Katie McAuliffe, Imogen Brazil, Madeleine Knight, Donna Bowen, James Liley, Matt Lumb, Kylie Wood, Kim O'Dea, and Tanya Davis. RECRUITMENT & CO | 12
Photograph by Francis Watson
MEMBER AND PARTNER NEWS
Helping Victorian women over 45 find work Victorian women over 45 looking for a new job or a career change can now access free advice and support from APSCo Member, Chandler Macleod. As part of the $619 million Jobs Victoria initiative, which supports people looking for work and connects employers with the staff they need, Chandler Macleod has launched their No Glass Ceiling Program. The No Glass Ceiling Program is designed for women over 45 in regional and metropolitan Victoria who are unemployed or at high risk of unemployment. The positions will provide sustainable employment with a minimum of 6 months
ongoing casual employment and the opportunity to transition into fixed term employment subject to performance. “The No Glass Ceiling Program provides women over 45 the opportunity to restart their careers. Our program will prioritise soft skills like resilience and team spirit over work experience to provide those, who may have been previously overlooked, an opportunity to demonstrate their full potential,” says Peter Acheson, Chief Executive Officer, Chandler Macleod Group.
SHARE YOUR NEWS WITH US! Do you have a news item regarding your business? A new appointment or an exciting announcement? Please get in touch with us here at Recruitment & Co. SEND YOUR NEWS TO CARLY@APSCOAU.ORG
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The grass is greener where it gets watered Candidate shortages, multiple counter offers, managing expectations, and not enough hours in the day. How do we give our people the tools to thrive in this environment? Glenn Chaffey, General Manager, Strategy and Corporate Services, at Exclaim IT writes.
Recruitment is a tough gig. Much tougher than many outside the industry might anticipate. Contracts, extensions, start dates, compliance, the list goes on. Not to mention that the ideal time for new requirements to come our way is at 5:25pm on a Friday! Add to that the time pressures and fill ratios of contingent work, and it can be easy to see how it can become overwhelming. As this happens, we see some recruitment professionals question whether a change of employer would bring a change of circumstance. However, everywhere we go, there we are.
In the world of recruitment, there are some undeniable truths: There are always other offers The ideal candidate accepted a role yesterday The budget, timeframe, skill-set, location isn’t quite right Our client needs 20 of the highest demand resources by next week Our people need to effectively self-analyze, manage wellbeing, and identify areas for upskilling to sustainably perform in a demanding industry. Some days are tougher than others.
Glenn Chaffey General Manager, Strategy and Corporate Services, Exclaim IT
In a long-term recruitment career, there will be mountain tops and valleys and we need to effectively manage both. To better equip people for success requires a multi-modal approach. At Exclaim IT, we run a monthly book club (Brene Brown is a favourite), training seminars, and regular meditation sessions, amongst other initiatives. By supporting each individual, we increase their capacity to achieve more – for clients, candidates, themselves, and each other. Recruitment is equally rewarding, challenging, enjoyable, disappointing, and filled with the unknown. We can teach our people to take heart in the knowledge that it does get easier – as we become more effective at managing and understanding our landscape. With this knowledge, they can stay planted, have fun, and grow.
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INTERNATIONAL NEWS - GERMANY
Germany still suffering major skills shortages The recent close call federal election in Germany has resulted in protracted coalition talks leaving Angela Merkel still at the helm until a new government can be formed. The results indicate that Germany is heading for a three-way coalition which may well involve an extended period of heated wrangling. Germany is also suffering from a new wave of covid infections and has recently brought in new office entry restrictions requiring proof of vaccination, recovery or daily testing as well as a mandatory principle of ‘work from home wherever possible. While the economy has been recovering well, The German central bank has recently said that the economy could stagnate in the final quarter of this year due to a lack of goods and labour as well as new restrictions to fight the coronavirus pandemic. Material shortages and supply chain issues, combined with higher energy and wage bills, led to an unprecedented rate of cost inflation which in turn led many firms to raise their own charges to a record degree. This subsequently knocked on to business confidence in November, with sentiment the lowest for over a year as many firms cited concerns around the pandemic, supply problems and price pressures, From a market perspective, Germany, like many other global economies is still suffering major skill shortages and we are seeing an increase in the dependence on freelancers to help plug skills gaps, particularly in the technology sector. In fact, according to a future global skills report by Randstad Sourceright, while Germany has a large pool of artificial intelligence, machine learning and cloud computing talent, most vacancies are posted in the prominent metropolitan clusters making roles difficult to fill. Overall, job vacancies stand at just over 800,000 a record level for the country – at the beginning of the year vacancies stood at just over 550,000 and have been steadily rising ever since. As we reported in our last update, the country is keen to attract more migrant workers and a new Immigration Act in Germany now offers accelerated work visas and six months to visit and find a job. Officials have warned that the country needs 400,000 new immigrants a year to fill jobs in a range of fields from academia to air-conditioning work. RECRUITMENT & CO | 16
INTERNATIONAL NEWS - UNITED KINGDOM
UK market stabilising Following record months of hiring, the UK recruitment market is showing signs of stabilising, with permanent and contract vacancies dropping slightly month on month.
The data, provided by growth analytics experts cube19, revealed a 4% drop in permanent jobs month on month in October, with contract vacancies also down 3%. This is indicative of the labour market starting to level out after months of hiring spikes with the Office for National Statistics (ONS) reporting vacancies had exceeded one million for the first time on record between June and August. Despite this slight dip, annual comparisons continue to rise, with vacancies for permanent and contract roles up 33% and 57% respectively when compared to October 2020. Our data also revealed an uptick in placements across permanent roles annually, rising 70% when compared to October last year. This is largely indicative of the impact of the furlough scheme which was still in place this time last year, reducing the hiring activity across the UK. While contract vacancies are down month on month, annual revenue statistics paint a promising picture for staffing companies, with revenue up 66% from permanent placements and 86% from contract placements when compared to the figures from October last year. This is further evidenced in APSCo’s latest UK Recruitment Index – produced in conjunction with Saffery Champness – which revealed that all staffing firms surveyed remain positive about their financial stability. Respondents indicated that they believed they had sufficient cash flows compared to last year, despite the ending of the furlough scheme and the upcoming need to pay deferred VAT and PAYE payments post-Covid While on paper the slight drop in vacancy numbers may, at first glance appear to be a negative, in the unique recruitment environment the UK experiencing this is, in fact, a welcome reprieve. Hiring has bounced back at a record pace this year following the impact of Covid in 2020 which has exacerbated skills shortages and created a highly competitive market for the best resources which was simply unsustainable. With the annual comparisons revealing significant spikes in vacancies, placements and revenue, the staffing sector remains extremely robust. RECRUITMENT & CO | 17
INTERNATIONAL NEWS - ASIA
On the cusp of digital transformation Recent research has revealed that nearly three in four IT decision-makers across Asia are facing critical skill gaps. This is against a backdrop of Asia being on the cusp of a digital transformation but also a crisis in terms of talent shortages. Emerging technologies such as 5G, Cloud Computing, Big Data, Artificial Intelligence, and the Internet of Things will dramatically reshape the digital economy but the digital talent needed to take advantage of this opportunity is sadly lacking. According to a report by Huawei, 81% of enterprises in Asia use cloud-based applications. The COVID-19 pandemic has further placed a spotlight on the importance of ICT investment to improve digital resiliency and spark economic recovery with data suggesting digital transformation has accelerated by about 7 years and hence the demand for talent increases. According to the report, there are five emerging technologies that will drive talent demand: Infrastructure as a Service (IAAS) driven by government spending to modernize the existing IT Infrastructure and growing shift towards server virtualization. Cloud computing has been rated as one of the most sought-after tech skills - with ever-changing technology, the demand for cloud engineers is increasing rapidly. Big Data Analytics driven by banking and telco services spending. Data science dominates LinkedIn's emerging jobs ranking according to LinkedIn’s Emerging Jobs Report AI and cloud computing - With AI and cloud computing at the forefront of innovation, AI architects, AI engineers, and cloud solutions experts will be amongst the most sought-after tech professionals, especially when talent demand is accelerated by government policy 5G Rollout - This, coupled with targeted initiatives to expand broadband and related infrastructure to rural and underserved areas across Asia is creating a major industry challenge across the private and public sector in attracting, recruiting, and retaining a skilled, productive, and 5G telecom workforce. Internet of Things - The contemporary Asia Pacific IoT job market is growing at a great pace with the increase in demand for skilled engineers and tech professionals who can serve the connectivity of billions of connected devices.
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Can we look forward to 2022? For many right now it’s time to reflect on the past 21 months of Covid-impacted business, remembering the tough times, pondering the many changes that we are now living with, anticipating some liberties, and being grateful for the goodness that has been shown by so many, says HHMC's Rod Hore.
Rod Hore Director, HHMC Global
What about 2022? A year that, by most accounts, looks to be strong and positive for the recruitment industry. We here at HHMC are very optimistic about the immediate future but there are lingering Covid issues and other factors that might lead to a bumpy ride. There are many criteria for success, but our discussions show three factors that will be critical to your performance next year: 1. Build out the internal team, and for most that requires an approach other than hiring experienced recruitment consultants. 2. Harness best-of-breed technology to maximise efficiency, compliance, and candidate/client excellence. And do everything possible to integrate products as well as train staff for productivity.
3. Supplement your scarce team with smart outsourcing in some or all areas of your business.
They have shown great growth and profitability, of course, but above all they have shown leadership.
And of course, this needs to be achieved efficiently, because inflation and rising costs might just be the next big thing.
That is our wish for 2022. Market conditions are good, and we look forward to all industry leaders gaining strength and benefit from this period.
During the recent period it has been a pleasure to watch companies emerge to be the new stars of the local industry.
The recruitment industry appears to have a very bright future.
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You earn margin when you go to the beach That’s the lovely thing about recurring revenue and that is why it helps make your business more valuable, writes Thomas Taylor from Middle Office. Thomas Taylor Director, Middle Office
Margin is “earnt” by each minute a contractor is on the job, not when you send the client an invoice, that’s just when you batch it up. If your lawyer charges by the hour they earn money from the moment they answer the phone, not when they send you a bill. They call their income “work in progress”, WIP for short, and they follow that number more closely than they follow billing. It might take them months to bill some matters and using that number would make their books “lumpy”.
We see a lot of agencies with that very problem; lumpy books caused by margin timing differences. They usually have temps billed and paid by the week and/or fortnight. So they have some months with 5 weeks and/or some months with 3 fortnights. Sometimes the invoices and payrolls don’t even fall in the same month. Try to think of billing, your batching, like a surveyor’s peg or a navigational fix. It gives you a data point to prove your real-time calculations. What sailors call dead reckoning.
Before modern cars started telling us instant/average fuel economy on the dashboard the nerdy amongst us, me included, would calculate fuel consumption each time we filled up. Fuel consumption is all well and good, but your margins are the most important numbers in your business, it can make or break you. We solve that problem for our clients, we give you more accurate margin data you can rely on, that lets you see trends, not lumps. RECRUITMENT & CO | 20
CONGRATULATIONS TO THE STATE AND NATIONAL WINNERS OF THE 2021 APSCO AWARDS FOR EXCELLENCE
OUR AWARDS FOR EXCELLENCE ARE INDEPENDENTLY JUDGED BY:
THANK YOU TO OUR JUDGES
THANK YOU TO OUR MAJOR AWARDS SPONSOR,
SOVEREIGN PRIVATE
THANK YOU TO OUR AWARDS CATEGORY SPONSORS:
Best approach to H & W
Excellence in Client Service
Best use of Digital
Best Performance
Excellence in Candidate Care
Best approach to Innovation
Best program WHS
THANK YOU TO OUR SPONSORS
The State Winners Victoria
New South Wales
Queensland
Halcyon Knights
Nudge Group
Troocoo
ACT
Queensland
Victoria
Whizdom Recruitment
Dare Recruitment
Lloyd Connect
New South Wales
ACT
Talent
Whizdom Recruitment
The National Winners
Halcyon Knights
Halcyon Knights in Victoria
Rubik3
Harrison McMillan
Peoplebank
Launch Recruitment
Talent in New South Wales
Sarah Lowe
Launch Recruitment
The National Winners Best Performance
Teams of 10 or less
Teams of 11 - 20
Lime Recruitment
Whizdom Recruitment
Teams of 21 - 40
Teams of 41+
Launch Recruitment
Peoplebank
Congratulations!
It's time to take stock of your legals There’s no doubt that the recruitment industry has kept lawyers busy in 2021! Add Fair Work changes around casual employment, mandatory vaccination challenges and consultants moving to competitors on top of new business models and increased PSA activity - it’s been pretty crazy. Ready Set Recruit Legal's Martin Richardson writes.
As we head into 2022, it’s time to quickly take stock so your ‘legals’ don’t fall behind as demand for your services continues to grow. If you’re using legal documents that haven’t been checked in the last 12 months, there’s no better place to start. Think TOBs, on-hire engagement contracts, employment contracts and your privacy documentation. Client Terms Make sure your Terms Of Business protect you and are clear on how and when you get paid. Don't cut and paste or 'borrow' terms unless you are 100% they are legally effective and protect you. Staffing services are very different to perm. Make sure your TOBs cover you for both. Review client PSAs before signing & get insurer OK to sign.
Contractors/temps Contractor engagement - are you on-hiring casual employees, independent contractors, or both? Understand your legal obligations as an 'employer'. Have appropriate workplace policies for internal and on-hire workers. Have appropriate engagement contracts that are legally compliant – especially given the new definition of ‘casual employee’.. Understand your casual conversion obligations under the Fair Work Act. Your team Don't 'borrow' employment contracts or rely on the same template for each employee. Tailor non-compete and non-solicitation clause per role. Don't rely on template clauses.
Martin Richardson Ready Set Recruit Legal Understand minimum entitlements for each role and whether an Award applies. Review your processes to ensure your legal documentation is being used correctly. Privacy Ensure you have a compliant Privacy Policy. Check you are obtaining consent where required i.e. collection of sensitive information such as COVID19 vaccination status. Ensure you have appropriate safeguards and security to protect personal information (and consider cybercrime insurance)– outsourcing to a third party provider might not be enough if ultimately your agency is the one attacked. The fact remains that if you're in the recruitment game, you're in the legal game. Whether you like it or not. Therefore, aim to align your legals with your current and future goals so you aren’t distracted, or blindsided, by legal issues that have the ability to cause financial and reputational damage.
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Solutions for the road ahead After a long and trying 18 months, states around the country have finally reopened and the road ahead is full of excitement but not without an undertone of anxiety and concern.
As a workforce compliance specialist, we at WorkPro understand the demand for simplicity in administering key compliance checks and information. We have worked closely with our appointed subject matter experts to design a COVID-19 Vaccination status management solution that delivers a streamlined experience that provides transparency yet maintains security and privacy for all parties. Naturally, a person’s vaccination status is sensitive information and is afforded a higher degree of protection under the Privacy Act. This information should only be stored for a specific purpose.
We’ve made sure to apply additional protocols, so the Certificate is uploaded and stored appropriately within the WorkPro platform to protect all parties. Additionally, WorkPro offers a unique feature that allows employers to view the Certificate and produce a date and time stamped record for audit purposes and permanently delete the Certificate from the client view at any time to suit their business needs. This critical element maintains and protects an individual’s privacy and helps companies easily achieve compliance. With vaccination numbers accelerating over the last few months, the focus now moves to boosters and the further
management of these updates. Customers can rest assured knowing our function is fully equipped and ready for the next stages. This new function is only one example of ways WorkPro are assisting businesses on the road ahead. With a wide range of background and probity checks, employment medical checks, eLearning modules and safety inductions, our aim is to ensure employers and recruiters are fully equipped with everything they could possibly need in their arsenal of workforce compliance tools. If you’re not already reaping the rewards of WorkPro’s vast array of background checks and more, then reach out today to find out how we can help you streamline and optimise your workforce compliance.
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Risk & Reward in Recruitment How do you mitigate the dangers and maximise the income in new business opportunities? Platinum WFM combined its technical expertise with finance insights from Scott Weddle, founder of Think Fast Finance, to bring you some answers. The demand for specialist contractors remains high, especially in disciplines like finance and IT. Since a handful of these contractors can represent over a million dollars in payroll, contractor management offers a very attractive growth opportunity for recruiters. With the sweet comes the sour, and the potential reward goes hand-inhand with risk. Darren Berson caught up with Scott Weddle to share ways that recruitment agencies can reduce the risk and maximise the reward. Reducing Risk Recruiters are exposed to fairly specific risks when they manage contractors. Time delays need to be mitigated because any delay between the recruiter paying the contractor and the client paying the recruiter has a direct impact on the recruiter’s cash flow. PlatinumWFM’s back office solution minimises delays: first, we chase contractors to submit their timesheets. Then we follow up on client approvals, and the moment those are done, our system automatically issues the invoice.
Our Contractor Care team is critical to this process because human beings are much better at chasing up other human beings than any automated reminder. Another necessity is meeting the tax and reporting obligations involved in paying contractors. Our system tracks taxable income and Super contributions, checking off tax, reporting and governance requirements with as few opportunities for human error as possible. If PlatinumWFM reduces the risks in the back office, what else can recruiters do to protect their business while expanding into contractor management? We asked Scott about other financial risks, and he highlighted two important issues: #1 Exposure Risk This happens when a recruitment agency is overly exposed to one client. What would happen to the recruiter if that one client suddenly couldn’t pay them? This is a very real risk so being prepared for it is important.
Darren Berson Platinum WFM
Scott Weddle Think Fast Finance #2 Working Capital Risk Running out of working capital is a major risk. This could result from exposure risk or because the recruiter did not fully understand their cash flow cycle. This cycle tells business owners what their current capacity is for growth. So, if a recruiter has ambitions to expand their revenue streams, it’s a great idea to get professional advice and plan for it financially. Securing Rewards Contractors are much more likely to choose a recruiter who takes good care of them. PlatinumWFM knows this, and both our Contractor Care Team and business system is designed to make the cycle of contracting, onboarding, and submitting timesheets as quick and easy as possible. A recruiter who takes equally good care of their contractors and clients is much more likely to have repeat placements and more secure revenue growth. (Continued page 33) RECRUITMENT & CO | 31
We asked Scott how recruiters can protect their new revenue stream. He replied at once: manage your exposure risk. If recruiters find it hard to spread their exposure among several clients, Scott recommends putting insurance and a backup finance facility in place. There are also two useful financial products to have in place before pursuing a new revenue stream.
This is important when recruiters need to pay their contractors before their clients pay them - they may invoice the client and need to pay their contractors within a few days. This financial product releases the invoiced funds early allowing the recruiter to pay contractors and continue recruiting while waiting for clients to pay.
Risk and Reward Roundtable
#2 Line of Credit
Simply register your interest here, and we’ll send you the details in the new year.
#1 Invoice Financing This is an ideal product for any recruiter who has already invoiced their client for payment and wants to leverage the value of the invoice for working capital.
This is a credit facility that gives recruiters complete flexibility on how they spend the funds - they agree to the total credit limit and only pay interest on what they borrow. This is an ideal back-up facility that recruiters only access when needed.
If you want to secure a new revenue stream in 2022, join us in January for our Risk & Reward Roundtable. We’ll bring together specialists in money, marketing, management and technology to share practical tips and tactics to grow your recruitment agency, especially if you manage contractors.
We won’t contact you for anything else, we promise.
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Your tech stack What lies beneath Agency Owners. I know you’re commercially savvy. But tech can be your blind spot. Vincere co-founder Eloise Sutton-Kirkby explains.
I hear these words far too often: ‘Our tech stack costs us this much’. No, it doesn’t. Because you haven’t looked beneath. Read this iceberg image three times. Then ask yourself… ‘What does our tech stack cost us? There’s two ‘danger zones’ when it comes to recruitment tech stacks.
1. Overcomplicating your tech stack: too many systems linked by flimsy integrations...so it becomes a ‘Frankenstack’. 2. Losing sight of the ‘Total Cost of Ownership’ (or TCO) of your tech. I’ve spent a lot of time chatting with Aussie rec firm owners, and they usually face the same challenges. We have too many systems with too much data. It’s hell dealing with compliance.’
Eloise Sutton-Kirkby Co-founder, Vincere ‘‘I wanted to change vendors for our CRM, but they got us with a timesheets integration. The contracts end six months apart. We can’t get out.’ ‘There’s zero analytics in our current platform. We want to grow our business but there’s no way our current system can support us in that.’ These cases seem separate, but they reveal one core problem. It’s the TCO. (continued page 35)
Think of the Titanic approaching an iceberg: it doesn’t matter whether the ship gets hit left, right, or center. It’s going down. Your tech stack is like that iceberg. From the surface, it might seem fine. You like the customisation options, you’re happy to work with multiple vendors, your admin team’s got the data handled. Heck, who cares if you’re paying over the odds - the market’s good, you can afford it. But get too close and you’ll realize what massive problems are hiding there. Any one of them could sink your business. Customisation means expensive, long-running projects. You end up customising yourself out of the vendors’ roadmap so miss out on product upgrades. Add that to your TCO.
Many vendors mean many contracts, training processes, and release cycles. You’re scrambling to keep up, and then overspending when you’re caught on the wrong foot. Put it in the TCO column. Data silos aren’t just bad for reporting, but also compliance: an area where you don’t want to put a toe out of line. Over time, you’re paying admin people to keep up with compliance and pull Excel reports. File it under ‘Total Cost of Ownership’. Sometimes the issue with Total Cost of Ownership isn’t what’s there, but what’s missing. Like with analytics: if you don’t have accurate dashboards, you’re missing out on real-time data that should be informing your business decisions. Those lurking, unseen, missed opportunities are what will really cost you in the long run.
What you don’t know can hurt your business. But there is a way out. Take an honest look at your tech stack. Price is one thing, Total Cost of Ownership is another. What are disparate systems really costing you? In time, effort, and lost opportunity? I’ve had this conversation enough times and my advice is always the same: build a tech stack for the long term. Invest in the system that’s going to get you through the tough times and set you up for growth in the good, and you won’t be taken down by any nasty surprises. And your crew will thank you.
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How to control your cyber risks The cyber threat landscape is ever-changing, leading to both cyber security providers and insurance companies having to continually assess and adjust their defenses and fine-tune their products. Mark Laudrum of BrokersOnline writes. For insurance providers, there is a range of approaches being taken from the ultra-conservative to the more progressive, all of which will want to dive deeper into your cyber protection and prevention practices. In order to obtain broad insurance cover, insurers will expect you to have some or all of these controls in place and if they are not, then cover will likely be limited or not available from some insurance providers: Regular offsite back-ups that are regularly tested Firewall technology at all internet points An incident Response or Business Continuity Plan in place which covers network security incidents Anti-malware software installed and enabled on all desktops, laptops, and servers Advanced endpoint protection for malware detection Multi-factor authentication (MFA) across all major systems Penetration tests that are conducted at least annually
Password policies and procedures that outline strong password requirements Processes to verify new customer or supplier bank account information At least two members of staff review and authorize any transfer of funds/signing of cheques Direct call back procedures to verify and authenticate requests to change supplier or customer bank account details While many larger Members will be managing their cyber security strategy internally, smaller agencies are less likely to have the in-house expertise to keep on top of the ever-changing cyber threats that cybercriminals are continuing to develop. There are many dedicated cyber security specialists within Australia and all members, regardless of their size, should be considering working with such firms to obtain an independent opinion of their cyber security arrangements but also to
Mark Laudrum Director, BrokersOnline ensure they are kept up to date with the latest cyber-attack prevention strategies. One firm that BrokersOnline has been partnering with, Cyber Indemnity Solutions, offers monitored cyber security solutions for SME’s and larger enterprises, with their capabilities being recognized by insurers as a key risk management quality, leading to preferential insurance cover. With the cyber insurance landscape continually evolving and insurers becoming more and more vigilant in the businesses they will insure and at what price/terms, having a comprehensive cyber security strategy and plan in place will not only save you money on your insurance spend, it will ensure your business is better protected and therefore less likely to be impacted and affected by a cyber-attack or crime. No business wants to be hacked and have to rely on their insurance provider to get them back up and running. Doing your utmost to prevent a hack from ever occurring must always be the first line of defense.
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The Great Resignation Threat or Opportunity? We’ve all heard of the looming Great Resignation. It’s predicted large numbers of employees will voluntarily leave their jobs over the course of the next year. Thanks to long periods of remote work and the mental drain of the pandemic, many of us will re-evaluate what is important to us, our careers, and our all-of-life balance. Bianca Witkin, Chief People Officer at Paxus writes. Rather than an impending crisis for employers, on the flip side, I believe we should view it as an opportunity. Instead of the ‘Great Resignation’, let’s see it as the ‘Great Reimagination’. As many of us take stock of our current work situation, it’s an opportunity for employers to re-evaluate our purpose and strengthen our Employee Value Proposition (EVP). There has never been a better time to check the relevance of our organisational values and its resonance in a postCOVID world.
Money doesn’t counterbalance an unfulfilling role or a bad workplace culture, or poor management. For work happiness, what really matters are the people you work with, the feeling of belonging, the inclusive culture and the sense of proud accomplishment in utilizing your strengths and living your values.
We can’t ignore that our employees will be tempted by high salaries and the ‘grass is always greener’ mentality.
Knowing the pulse of our people is critically important. In a recent employee engagement and wellness survey we conducted at Paxus, one of the common feedback themes received was that our organisation “feels like family”. This isn’t due to chance.
However, as we know, compensation is only part of the equation in attracting and retaining talent.
Before and throughout the pandemic we worked extremely hard in implementing multifaceted
Bianca Witkin Chief People Officer, Paxus initiatives to reinforce our bonds, ensure people are supported, encouraged to be their best selves and to be happy and thrive. From mindful leadership and managers’ emotional intelligence training to flexible and remote working balanced with face-to-face connection and collaboration points, we offer a host of benefits such as mental health support, resilience training and self-care leave. It is so important to us to celebrate achievements and we pull together when times get rough, which has been instrumental in getting us through the multiple extended lockdowns, fear, and uncertainty. We can’t hide from the Great Resignation, and instead of seeing this as a threat, we are using it as an opportunity to transform our working environment where employees choose to be a part of, and others strive to join.
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"WHEN YOU HAVE YOUR OWN NETWORK TAILORED TO YOUR OWN INDUSTRY - THAT IS ABSOLUTELY AMAZING." Michelle O'Malley, Genesis IT&T
The Association of Professional Staffing Companies in Australia.
The only dedicated association for white collar recruitment agencies.
To enquire about membership in 2022, contact Paul Ferris paul@apscoau.org
