TH E VI E W AN D TH E I N TE LLI G E N CE
The challenges and opportuni es ahead p3 B I G TALKI N G POI N T
How to build resilience in uncertain mes p4 LEGAL U PDATE
Issue 96 Recruitment JanuaryFebruary 2022 Ma ers
Rules on changing employment contracts p6 W H AT I KN OW
REC Award winners share their inspira ons p7
D&I guidance
Improving diversity N
ew Year, new you. A me to take a look at your business and review, find areas to improve upon and gaps that can be filled. Diversity, equality and inclusion has been an important area of focus for the REC and the industry over the past few years, but there is always more to be done. As we move into 2022, your business might be considering inves ng in new technology to make your processes fairer and more efficient. Ar ficial intelligence (AI), automa on and other data-driven tools are becoming more prevalent in recruitment, and present important opportuni es for recruiters. However, they are not a silver bullet – these tools must be implemented carefully to avoid duplica ng and exacerba ng biases that might already exist in their design. The REC has worked with the Centre for Data Ethics and Innova on (CDEI) to produce guidance to help recruiters assess what kind of data-driven tools could help them, evaluate their op ons, and deploy them responsibly and effec vely. Whether you are buying an automa on or AI system or building your own in-house, it’s vital that recruitment companies innovate with care and considera on. These tools have the poten al to greatly improve efficiency and reduce the amount of human bias in the hiring process. We hope this guidance will help to make that possible. The REC has also taken part in groups working to support older workers, both through the recruitment process and once they are in work. Guidance produced with the Centre for Ageing Be er and CIPD aims to
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help companies recognise the issues caused by age discrimina on and make sure they are being as inclusive as possible when hiring. As part of the 50 Plus Choices Employer Taskforce, we have also designed a guide for employers to help them support staff who are going through menopause. As recruitment companies make plans for 2022 and beyond, we hope these guides will help us all to be more inclusive and pass that good prac ce on to clients. All guidance is available at www.rec.uk.com.
Making great work happen
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Leading the industry
the view... Uncertainty is an opportunity for the recruitment industry, explains Neil Carberry, REC Chief Execuঞve
H
appy New Year to you and yours from the REC! When January rolls around, it’s always a good me to take stock of the year just past, and to look at what’s ahead for the business and the industry. First, the economic climate looks more uncertain than last year. The ini al surge in ac vity is tapering off, and shortages are pu ng capacity constraints on economic growth. For a number of reasons, we expect the labour market to remain ght for several years. And the virus hasn’t gone away. I’m wri ng this just as we are learning about the Omicron variant – I hope the picture is clearer by the me you read it. Uncertainty is both a problem and an opportunity for recruiters. Employers will need more support to manage their talent pipeline effec vely, not just in terms of finding experienced staff and borrowing skills through temps, but also growing new pools of young talent and retraining older workers. It means giving opportuni es to people more distant from the labour market, and helping clients get the right offer in place to a ract staff and retain their best employees. Clients will increasingly need this full service from expert recruiters – support to find staff and broad advice on workforce planning and talent management. That is, first and foremost, a human business. Our use of tech has come on leaps and bounds during the pandemic, and more will be needed to improve the UK’s produc vity. But the great stories from the REC Awards highlight that, at its core, recruitment is about people. It’s vital that we focus on providing the best advice possible and building a true partnership with clients. Now is the me to show the value of the recruitment industry. There will be hurdles, but also opportuni es. The REC will be here to help firms and professionals make the most of these, and will con nue to highlight the importance of the industry to government and client businesses. Let’s make 2022 the most successful,transforma onal year we have ever seen! If you want to keep up to speed with all things recruitment then follow me on Twi er @RECNeil 2
C A MPA I GN S
Our path to a greener future Shazia Ejaz, Director of Campaigns at the REC
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OP26, the latest UN climate conference, felt different to those in previous years, and not just because of Covid. This COP moved beyond rulemaking and focused on implementa on – and everyone was interested in the results, not just policymakers. Progress on finance fell short, but the Glasgow Climate Pact, which called for renewed efforts to cut emissions, was a step in the right direc on. It was also the first COP ac on to target fossil fuels explicitly, although some argue the meline is too long. Tackling climate change is more important than ever and we are all responsible for it. As Sir David A enborough said: “We must use this opportunity to create a more equal world and our mo va on should not be fear but hope.” So, what can business do to make a change, and why does it ma er? To meet the UK government’s commitment to be carbon neutral by 2050, employers must adjust their business models and ensure they play their part. Encouragingly, business voices were much more audible at COP26. Many companies have made it clear that they are commi ed to reducing their carbon footprint. This will be par cularly important as more employees choose to work for companies with strong environmental policies. The Prince’s Trust’s 2021 Future of Work report found that 77% of young people in countries across the world would consider the environmental impact of the company or sector when choosing a job. A clear and concise sustainability strategy is a vital a rac on and reten on tool now and for the future. The recruitment industry also has a role. The REC recently set up a staff-led Environmental Commi ee which will review and enhance our environmental policies, ensuring they are robust and fit for the future. We’re also making “green” a campaign priority this year. We will look at how our sector can be more sustainable and use our voice to advocate for clear and ambi ous policies that will help us achieve our 2050 targets. We would love to hear your thoughts on this – get in touch.
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Leading the industry
the intelligence... Recruiters prove their worth during challenging mes By Atanas Nikolaev, Research Manager
It’s almost two years since the first coronavirus case was recorded in the UK. As we all know, the period that followed has been characterised by massive uncertainty and social and economic disrup on. But the REC’s new report on the state of the UK recruitment industry for 2020/21 shows that the sector con nued to prove its resilience and value to the UK economy throughout one of the most challenging periods in living memory. Ask any recruiter and they will say that helping people to find a fulfilling job, while suppor ng clients to grow and succeed, is the most important and rewarding aspect of what they do. The value of the jobs that recruiters secure for people cannot be underes mated, especially during such difficult mes. In 2020, through the worst of the pandemic, UK recruiters placed almost a million temporary workers into assignments every day. They also placed over 450,000 people into permanent posi ons, despite the Covid restric ons and lockdowns that were in place. The industry itself
1.2% increase in the
£35.9 billion
added to the economy by the recruitment industry – around 1.8% of UK direct GVA in 2020.
recruitment industry’s direct GVA between 2020 and 2021.
supported 110,000 employees in just over 30,000 businesses. Despite the challenges created by the pandemic and severe skills shortages in many sectors, the industry has con nued to supply skilled workers to businesses in the UK. This was instrumental to the economy’s resilience, as recruiters played a significant part in keeping vital services running – keeping food on supermarket shelves, caring for the sick and vulnerable, and helping companies to bounce back as restric ons li ed. All this successful recruitment ac vity resulted in the industry adding £35.9 billion to the economy – around 1.8% of UK direct Gross Value Added (GVA). Business confidence started to recover at the end of 2020 a er falling drama cally, and it has been gradually rising throughout 2021. Fuelled by the reopening of the economy, recruiters have experienced a steady increase in demand for workers. This caused an increase in recruitment
450,000
people placed in permanent posi ons in 2020, despite Covid restric ons and lockdowns.
ac vity, higher revenues and greater economic contribu on by the industry. The REC es mates that the number of permanent placements and temporary workers on assignment every day increased by around 16% and 8% respec vely. This would increase the recruitment industry’s direct GVA by 1.2% between 2020 and 2021. The recruitment industry has bounced back from this crisis and emerged stronger and more resilient than at any me since the last economic downturn. Agencies have already changed their business prac ces and learnt valuable lessons from the Covid-19 crisis. More than ever, recruiters are trying to establish closer es with both their clients and candidates. Others are focusing on reducing costs and building up their reserves to cover future business expenses – for example, if the government imposes more Covid restric ons in the next few months. This is a strong and adaptable industry, and these changes will put the sector in a strong posi on to succeed in 2022. January-February 2022 Recruitment Ma ers
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Resilience
big talking point
Riding the rollercoaster
January is a me for assessing the past and scanning the future. But the past two years have been a rollercoaster ride. What have we learnt and what will we face in the year ahead – and can the recruitment industry prepare for what happens next?
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n 2021 most recruiters went from zero to full thro le in a few months. One moment, employers were pu ng everyone on furlough, with dire predic ons of mass unemployment. The next, everyone wanted candidates when very few were available, and some skills that were nearly impossible to find. As the profession works fl at out to meet this soaring demand, what should we expect to see in 2022? The most obvious answer is uncertainty. No one knows exactly what the pandemic will throw at us next or what a long term new normal for jobs will look like – offices vs homeworking or hybrid is just one example of that. And the strength of the UK economy depends on many factors, including Covid, repercussions from Brexit, and how we handle the country’s ageing popula on. One message from those who have prospered through the highs and lows of the past couple of years is that caring for your people – staff and candidates – has never been more important, no ma er how or where they work. This was the key element cited by winners at the REC Awards 2021. There’s nothing like a crisis to test what you do in prac ce. Staff who are worried or angry about their own posi ons are less likely to go the extra mile to provide superla ve service to
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customers. This is a home truth that recruiters are telling employers who are struggling to hire people, some mes the same people they laid off last year. But it also applies to recruitment firms if they have taken their teams for granted. “In the first lockdown vacancies dropped by 90% in two weeks and fees we thought were guaranteed vanished overnight. It was frightening,” recalls John Lynes, Director at Ashdown Group. However, from the start, Ashdown focused on its team, ramping up internal communica ons and developing a closer rela onship with staff via Microso Teams. The company was part way through a change programme that included achieving Investors In People
accredita on, moving to cloudbased technology and developing its training and CPD provision. This gave it a head start when it switched to remote working. Lynes believes it was important that they developed a plan in early 2021 and stuck to it. Everyone in the team had personal goals and was helped to develop their knowledge and skills. Above all, there was a mantra that customers must never be let down. The work paid off and Ashdown Group regained its pre-pandemic target financial posi on by the end of November 2021. By then, the challenges had shi ed – demand was soaring and the main concern was to
Challenges for 2022 1. Finding people to grow your own team as well as candidates for customers. 2. Increased compe
on from in-house recruitment teams.
3. The poten al for labour shortages to s fle business and economic growth. 4. The long-term impact of Brexit. 5. Further waves of Covid-19. 6. Ongoing economic uncertainty.
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Statistics 97 million new jobs will be
created by AI and automa on by 2025 (WEF)
48%
of employees will work remotely at least part of the me a er Covid-19 compared with 30% before the pandemic (Gartner)
53%
of people think technological breakthroughs will transform the way people work over the next 5-10 years (PwC)
49%
of employees in the fi ve largest European countries say they prefer working from home – but only 32% of employers are willing to grant this flexibility (Forrester) ensure staff didn’t burn out or feel isolated under the pressure. This emphasis on people is also central to the “Carrington West Flywheel”, says James Fernandes, Managing Director of Carrington West. “There’s no silver bullet, but every element we do well on the wheel increases momentum,” he explains. “If you focus on employee wellbeing, mo va on and training, that creates a great culture. That helps to a ract clients and please them, which helps to grow your business so you can invest more in your employees.” A successful business competes against itself, not other companies, he adds. “We start by iden fying what we want our staff strategy to achieve and that leads to how we will grow the business. People are the first part of growth.” It worked for Carrington West, which made no redundancies in lockdown, grew by 6% in the first year of COVID and by 50% year-on-year in 2021. The company has a learning and development hub and staff were encouraged to take advantage of it during lockdown, as well as a ending wellbeing and virtual social events. www.rec.uk.com
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This meant that when the economy reopened, the company could capitalise on the boom. “We were like a coiled spring – we came out of lockdown stronger than we went in,” Fernandes says. “Almost every month since last summer has been a record month.” In 2022, his company is priori sing ‘wellness’ as a specific issue, focusing on understanding employees’ needs and how they are coping with the stresses of the past year and current workloads. In addi on, they are reviewing their technology to ensure that their tools and use of ar ficial intelligence will meet their future needs. If you are confident about your people and their skills, you can capitalise on the opportuni es that disrup on brings. Ashdown Group responded to the pandemic by launching a new execu ve search service and this helped the business to grow. It plans to increase its staff by 50% this year and to move into new markets. It also aims to become carbon neutral, which it believes ma ers to its staff and supports its key values. The REC is encouraging more recruitment companies to start thinking about their environmental
responsibili es if they haven’t already, as this becomes a more urgent issue for jobseekers and the wider public. Successful teams will be able to add value as consultants and build closer rela onships with clients by offering long-term support and strategic insights. However, developing rela onships – with staff or customers – is challenging to do well remotely. This will be an issue for firms in the next year. “Building and maintaining a company culture is one of the biggest things a leader needs to do and it has to be done face to face,” Fernandes says. “How do you keep people engaged if you never meet them? How do you develop social skills without physical mee ngs? Online training is great, but face to face is different and be er.” Whatever 2022 brings, it’s clear that business resilience will remain of paramount importance and recruitment companies stand and fall by the character and mo va on of their people. “The only reason we’re s ll here in 2022 is because of our team,” Lynes says. “We’re incredibly lucky and, if we hang on to this, I think the future is pre y rosy.” January-February 2022 Recruitment Ma ers
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Employee contracts
legal update
Things employers must consider before amending employment contracts By Bunmi Adefuye, Legal Advice Manager, REC
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s most employers conঞnue to deal with the impact of Covid-19 and Brexit, they may need to review and amend employees’ contracts to meet their business’s needs and ensure they are sustainable. The amendments may reflect a permanent switch to hybrid working, moving to new oLce premises, or changing pay rates, working ঞme or even the employees’ duঞes and responsibiliঞes. A contract of employment sets out the rights and obligaঞons that bind the employer and employee to the contract. The general principle is that an exisঞng contract of employment can be amended only if both parঞes agree, so you must get the consent of the employee to change their contract. Before doing anything, you should seek advice from a legal or HR professional to avoid making mistakes. It is also important to consider the nature of the terms you want to change.
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An employee’s statutory rights cannot be changed unless it is to improve that right – for example, by giving more than the statutory holiday enঞtlement or paying more than the naঞonal minimum wage. You must also check that you have the right to change the contract. Even where the contract has a variaঞon clause, you should sঞll try to get the express agreement of the employee to make the amendment. If the employee objects to the amendments, this could damage morale and good working relaঞons. It could also lead to legal claims for breach of contract or construcঞve dismissal (if they meet the eligibility criteria). If there is a trade union involved, it could lead to strikes or other industrial acঞon. It is therefore best to consult with the employee and work with them to get their consent before a empঞng to change their contract. An employer has one month to noঞfy
someone of any changes to their terms of employment. The employee should be fully aware of any detrimental changes so they can decide to accept or reject these. Although the amendment can be agreed orally, it is much be er to put this in wriঞng so that both employer and employee are clear about the changes and when they will take e@ect. In light of the government’s review of employers’ firing and re-hiring pracঞces, Acas was instructed to publish more guidance to help employers maintain good employment relaঞons and to provide advice on how to reach an agreement with employees before amending their contracts. This guidance can be found on the Acas website.
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Core values
Q&A
What I know
Two REC Award winners on the inspira on behind their success
Louise Hewe , Founder, Hewe Recruitment, and winner of the REC Lifeঞme Achievement Award Invest in people.
I started my business in 1980, built on family values and the basic principle that if you look a er your people, the pounds will follow. We’ve always been immersed in the local community, suppor ng projects, chari es and local educa on establishments. It’s not just about filling jobs; our success has been built on suppor ng, advising and sharing our accumulated knowledge.
Use your influence. Recruiters have the opportunity to use their considerable influence to make good things happen. It’s surprising how far the tentacles of our profession reach and how we can use those connec ons in www.rec.uk.com
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business and the wider community. When you are generous of spirit, wonderful things can happen. In difficult mes we have organised roundtables and seminars enabling employers to share common challenges, learn from each other and feel supported.
Our profession is resilient and will rise to the challenges ahead.
Winning the award took me completely by surprise. It is a huge honour to have this na onal recogni on from an industry I’ve always loved. Although I’ve recently re red from recruitment, I’m now enjoying my new role as Deputy Lieutenant of Worcestershire, s ll working with top employers running the Queens Awards.
Tracey Beecham, Assistant
Programme OLcer, ERA, and REC Recruiter of the Year How did Covid affect your work at Ethical Recruitment Agency (ERA)?
I’d just joined when the pandemic started. All our profits are reinvested in community projects and training. When people come to us, we encourage them to volunteer to help in the community and they build confidence and develop skills. When the first lockdown began we got our volunteer network to distribute leaflets offering support – from collec ng prescrip ons to driving people to appointments, fi ng safe keys or using our digital buddy scheme to reduce isola on. When people are made redundant they are o en in limbo with no money and low self-confidence. Helping others offers a sense of purpose,
as well as the chance to develop, share and learn new skills.
Were you busy?
The phone never stopped ringing. We went far beyond what we expected to do. One person fi ed an alarm for a blind man, while others put the hea ng on and food in the fridge for when people came out of hospital. These were life-saving front-line jobs.
What were the outcomes?
Lots of our volunteers now have jobs and we won new contracts. The publicity was amazing and enabled us to do much more – we’ve just paid for ten people to get HGV licences. One lady said without us she couldn’t have got out of bed. Now she leads digital buddy groups and her confidence has rocketed.
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REC Awards
REC Awards 2021 in pictures The REC Awards were presented at an event last November. We celebrated excellent recruitment pracঞces and outstanding individual achievements by recruiters across the country. Here are a few highlights from the awards night.
Recruitment Ma ers
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The oLcial magazine of The Recruitment & Employment Confederaঞon Dorset House, 1st Floor, 27-45 Stamford Street, London SE1 9NT Tel: 020 7009 2100 www.rec.uk.com
Recruitment Ma ers January-February 2022
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Membership Department: Membership: 020 7009 2100, Customer Services: 020 7009 2100 Publishers: Redac ve Publishing Ltd, Level 5, 78 Chamber Street, London E1 8BL Tel: 020 7880 6200. www.redac ve.co.uk Editorial: Editor Ruth Pricke . Produc on Editor: Vanessa Townsend Produc on: Produc on Execu ve: Rachel Young rachel.young@redac ve.co.uk Tel: 020 7880 6209 Prin ng: Printed by Precision Colour Prin ng © 2022 Recruitment Ma ers. Although every effort is made to ensure accuracy, neither REC, Redac ve Publishing Ltd nor the authors can accept liability for errors or omissions. Views expressed in the magazine are not necessarily those of the REC or Redac ve Publishing Ltd. No responsibility can be accepted for unsolicited manuscripts or transparencies. No reproduc on in whole or part without wri en permission.
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