Recruitment Matters October 2014

Recruitment Matters Issue 29 October 2014

Trade Association of the Year

What’s inside The Intelligence 2-3 and REC Talk The changing face of temp work, looking at stats and recruitment issues from the party conferences

a social 4-5Berecruiter

iStock

Social media and recruitment

Waving the flag for co-operation across all regions of the UK

Foster flexible labour market The future of the labour market must remain a focus following Scotland’s rejection of independence last month.

All three party leaders in Westminster have promised to devolve powers to the Scottish parliament, while addressing the way laws will be created across the UK. Shortly after the referendum result, Downing Street announced that Lord Smith of Kelvin will oversee a process that will see the publication of draft legislation in January.

The Recruitment & Employment Confederation

(REC) says job creation across the country needs to be addressed.

REC chief executive Kevin Green said: “The referendum has unearthed a series of questions about greater levels of devolution and this will undoubtedly herald significant changes for Scotland and the rest of the UK. “We will continue to keep all members informed as the discussions move forward and we will engage and represent the recruitment industry at the highest level.”

The REC is calling on policy-

makers to foster a dynamic and flexible labour market with collaboration and cooperation across all regions.

“In all discussions about further devolution, policymakers must keep in mind that workers move across borders and businesses need to take talent with them, wherever they are operating,” Green says.

“The UK jobs market gathers its strength from the close collaboration between the different regions and nations of the UK and this should remain at the forefront in all deliberations.”

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Legal lowdown and REC Business Partner

Social media and data theft, and REC business partner offering from Outsauce

Institute of 7 Recruitment Professionals Cassie Connell of Thorpe Molloy and Grahame Caswell of Search Consultancy

ng Industry 8 Staffi Analysts Executive Forum comes to London and REC City Conferences in Manchester

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Leading the Industry

the intelligence Fig 1: Recruiter revenue growth

The changing face of temporary work

40 ■ Upper quartile ■ Median ■ Lower quartile 30

recent data from April to June 2014, the proportion of associate professional and technical occupations was the largest they had been for seven years.

It is too early to suggest a compositional change in the make-up of temps. However, two trends highlight a possible change in the way temp workers are used by employers, and the type of workers that are most in demand.

The REC JobsOutlook survey on employer hiring intentions highlights two interesting trends.

Firstly, in thinking about the importance of agency workers, 79% of employers use agency workers to access key strategic skills in the short term. This is the most popular reason given by employers. In August 2012, the main reason employers used agency workers was to cover leave.

Secondly, the number of employers who have temps that go on to become permanent has fallen. At the beginning of 2014, the proportion of employers that made at least one temp worker permanent was 83% compared to 55% in August 2014.

The trends could suggest a move towards a growing professional class of temp workers that are not substitutes for permanent workers but are called upon to plug skills shortages.

% of temporary workers

25

■ Managers and senior officials ■ Professional occupations ■ Associate professional and technical ■ Admin & secretarial ■ Skilled trades ■ Personal services ■ Sales & customer services ■ Process, plant machine operatives ■ Elementary occupations

20 15 10 5 0 Apr-Jun 2007 2008 2009 2010 2011 2012 2013 2014

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10 %

The labour market has undergone changes since the financial crisis and policy-makers are keen to influence how we view these changes and to shape how the labour market evolves. A key area for debate is temporary workers and the diverging views on the nature of them. On one hand, temp work is castigated by some commentators as involuntary, the fate of low-skilled and untrained workers. The counterargument is that temp work is a valuable opportunity to access work and affords people flexibility to manage other areas of their life.

The debate could benefit from some understanding of who temp workers are. The Office for National Statistics (ONS) provides an overview of the composition of the temp workforce as: agency workers, freelancers, seasonal and casual workers.

The graph below shows that temp workers are drawn from two main occupations: elementary and professional occupations. In 2007, professional occupations were the largest proportion of temp workers. More recently, professional occupations have nudged ahead of the elementary occupations.

Of note, the proportion of temp workers from the associate professional and technical occupations has increased. In the

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Fig 2: RIB recruiter employee growth 30 25

■ Upper quartile ■ Median ■ Lower quartile

20 15 10 %

By Nina Mguni, senior researcher at the REC

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-10 -15 -20 Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul 12 13 14

Recruiter headcount grows Recruiter revenue growth (Figure 1) has been steadily accelerating since October last year, with the median recruiter revenue growth standing at 16.7% in July. The top quartile of recruiters have done even better with stunning revenue growth of over 30%. Unfortunately more than a quarter of recruiters are still seeing falling revenues, with the lower quartile revenue growth being down 4%, demonstrating the importance of understanding your key performance indicators that drive profitable growth. Those recruiters growing the fastest are those predominantly focused on providing temporary placements, perhaps a sign that employers lack confidence to take on permanent staff.

Figure 2 shows that recruiters have been increasing their headcount since August last year, and that the growth in headcount has been steadily accelerating to being up nearly 11% in July. Whether the higher headcount is driving the higher revenues, or is in response to a more buoyant recruitment market, only time will tell.

Despite this excellent news, we do have some concerns however, that recruiter productivity has been steadily declining. The median annualised total turnover per fee earner has been steadily falling for nearly two years, and is now 11% lower than a year ago. While this may, in part, be due to taking on new fee earners, and the average being dragged down whilst they find their feet and become fully productive, this is an area that we would suggest that recruiters keep an eye on in their own business.

• Chris Ansell is Chief Financial Officer at Recruitment Industry Benchmarking (RIB). The RIB Index provides bespoke confidential reports on industry trends. See www.ribindex.com; info@ribindex. com: 020 8544 9807. The RIB is a strategic partner of the REC.

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Leading the Industry

REC director of policy & professional services Tom Hadley takes stock of this year’s Party Conferences and looks at some of the ‘hot topics’ for the recruitment industry

Getting jobs on the political agenda

The View

We’ve been in amongst it in Manchester, Birmingham and Glasgow.

With the general election less than eight months away, the last few weeks have been crucial in ensuring that the industry’s voice is at the forefront of key debates on jobs, skills and employment policy. What were some of the key messages and common themes at the Labour, Conservative and Lib Dem conferences?

Jobs and growth are priorities for all the parties, but with a few nuances. For example, Labour’s focus was on ‘good jobs’ and on creating more middle-income employment opportunities. One of our priorities in Manchester was to promote the benefits of flexible working arrangements by showcasing the findings of our ‘Flex Appeal’ report.

Education and skills featured predominantly. Parties have differing views on issues like careers guidance in schools but there is consensus on the overall need to build links between businesses and education.

The contribution that REC members are making through our Youth Employment Charter is a great practical example of how recruiters can use their expertise and knowledge of the jobs market to help make a real difference.

One common theme was the need for more regional autonomy in areas such as skills budgets. This underlines the importance of building a strong regional voice (in particular, through the work of REC Regional Directors) and keeping a keen eye on new opportunities for specialist recruiters across the regions.

Fringe events and key speeches at all three conferences honed in on sector-specific proposals that will be of interest to specialist recruiters, including additional investment in the NHS, education policy, care standards, infrastructure investment (good news for construction recruiters!) and boosting skills in high-end sectors like technology, engineering and life sciences (through the development of high level apprenticeships). We will be working with REC sector groups to review how proposals might impact on future staffing needs across all sectors.

Having a strong industry presence at party conferences is a key part of our work to raise awareness and recognition of our industry’s contribution amongst the so-called ‘political elite’. The aim is also to influence the direction of travel wherever possible in terms of manifesto commitments and policy proposals. As the political machine hits full throttle ahead of May 2015, we will continue to work with members to monitor the political scene, drive awareness and to fight for the best possible outcomes for our industry and the labour market.

Jobs continue to be at the forefront of political debate and all of our data reveals that the jobs boom shows no sign of abating. Our monthly Report on Jobs with KPMG shows there is more great news for people looking for work, as we see more people being placed into jobs in the regions and in a range of sectors including construction, IT and engineering.

However, the UK’s post-recession problem is skill and talent shortages. The economy is going to be constrained by this ongoing talent crisis if employers keep doing business as usual. Hirers need to take on more young people and train and develop their employees like never before to ensure that they have a talent pipeline for the future.

The figures also show that our industry continues to play a vital role in offering solutions to the skills shortage and getting people into work. It’s clear that skills shortages are affecting the way in which employers use agency workers. Increasing numbers are now relying on temporary staff to provide short-term access to strategic skills, as well as usual reasons of covering leave and meeting peaks in demand.

This is a trend that is likely to continue, as it becomes increasingly difficult to source the skilled permanent staff that businesses need to grow. Recruiters continue to successfully adapt to the challenge of skills shortages with more than nine out of 10 employers reporting they are satisfied with the quality of candidates they are being provided by recruiters.

Our flexible and dynamic labour market must be recognised and supported. As skills shortages increase and employers struggle to find the people they need, politicians from all parties should focus on ensuring that we have a visa and immigration regime that supports UK businesses. We were pleased to hear that BIS secretary Vince Cable seems to be joining our calls for change at this issue. We hope his colleagues in government will heed these calls from business. The long-term solution us better training, education, more apprenticeships and effective careers guidance for our young people. But in the short term we must allow employers to access the skills they need from overseas.

• You can follow Tom on Twitter @hadleyscomment

• You can follow Kevin on Twitter @kevingreenrec

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The Big Talking Point

Be a social recruiter A

Business Insider article from 2012 says: “Cold calling is dead”. Social media sites, particularly Linkedin, are forcing recruiters off the phone and onto the web. The site has more than 300m CVs and profiles, making it the largest recruitment database in the world.

When LinkedIn launched its Hiring Solutions platform – a premium service designed for headhunting talent – its revenue grew by more than £52m in the year to 2012. The service gives any subscriber the ability to search for candidates by company, job title or skill range.

“LinkedIn is disrupting the market for job boards, advertisers, recruitment service firms and recruitment software companies,” wrote John Bersin from Bersin & Associates.

But it is one thing to have access to such a massive database, it is another thing to attract talent. Recruitment companies know that the tenets of selling roles to candidates and working with clients are more important than ever.

That’s when they turn to experts like Social Talent’s Johnny Campbell and PHP Creative’s Dave Hazelhurst. Both

are specialists in using online sources to attract talent and business. They teach recruiters not to skimp on the basics, but to apply their sales skills to social media channels.

Both have cultivated a huge online following and speak around the world about getting the most out of social media.

Hazelhurst says the idea that online recruitment is as easy as entering search terms into Google is wrong.

“In online or offline marketing, there’s never really been an ‘easy way’ or ‘get rich quick route’,” says Hazelhurst.

“It’s all just down to understanding all the tools you have at your disposal, knowing how to use them, and working hard to apply the insights to your business.”

If anything, social media forces recruiters to be savvy in their approach.

They can ill-afford to treat online sourcing as an easy road to filling a vacancy. Online communication is easily done, particularly if a candidate is used to approaches through Linkedin.

“The really good corporate recruiters I know tell me that they average 25-30%

iStock

Applying old-fashioned recruiting sales skills to social media is not always that straightforward, but neither should it be ignored. RM ’s Michael Oliver investigates

reply rates. Not bad, eh? Wrong. If you’re only getting replies from one in five, then four out of five people are getting spammed,” says Hazelhurst.

Johnny Campbell says: “It is important to remember that the ability to search for candidates and identify their contact details is just the beginning of a long, complicated process that we call recruitment.

“You only get one opportunity to make a first impression, and when you are

The really good corporate recruiters I know tell me that they average 25-30% reply rates. Not bad, eh?

Wrong. If you’re only getting replies from one in five, then four out of five people are getting spammed Dave Hazelhurst

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Campbell’s LinkedIn lowdown * A profile with a photo is 11 times more likely to be viewed * Members with >2,000 connections report response rates higher than those with >500 connections * Members who share content at least once a week are 10 times more likely to be contacted for new opportunities * Members engage 7x more with content than jobs

Both Dave Hazelhurst and Johnny Campbell have been starring in the series of events for the Recruitment & Employment Confederation called Sourcing Talent.

Attendees learn how to use mediums like Twitter and LinkedIn to build a stronger portfolio of clients, and ultimately, grow their business.

approaching a potentially cold candidate, you need to make sure that you grab their attention and give them a really good reason to call or email you back.”

With any sales pitch, one style won’t do. Both Hazelhurst and Campbell advise recruiters to tailor their approach to suit the medium. The way you would engage a candidate through the serious world of LinkedIn must be different from the casual style of Twitter or Facebook.

Campbell describes Twitter as a little like a stream of consciousness. Recruiters have a very short window to make an impact, and must go about it in a very precise way.

“Think of Twitter as a beach bar where everyone is wearing board shorts and flip-flops and sipping cocktails,” says Campbell. “If you’re the recruiter walking in wearing a three-piece suit, clutching a briefcase and ordering Cristal, nobody will want to talk to you.”

The workshops will cover: • Finding the right candidate online • Using social media to generate a return on investment • Understanding your audience and honing your online persona • How to become digitally famous This is a rare opportunity to hear from two world-class recruiting experts, and discover how to turn retweets and likes into pounds and pence.

Registrations for the remaining events in London, and a special event in Manchester, are still open at www.rec.uk.com/sourcingtalent

Think of Twitter as a beach bar where everyone is wearing board shorts and flip-flops and sipping cocktails. If you’re the recruiter walking in wearing a three-piece suit, clutching a briefcase and ordering Cristal, nobody will want to talk to you Johnny Campbell

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Legal Update

Advice and warnings on social media and data theft

By Lewina Farrell, solicitor and head of professional services, Recruitment & Employment Confederation Social media is a powerful communications tool that allows individuals and businesses access to an infinite number of contacts. However, new technology doesn’t mean that we can forget usual principles regarding employee/employer behaviour.

In Crisp v Apple, the employment tribunal (ET) found Mr Crisp had been fairly dismissed after he posted comments on Facebook criticising Apple products. The ET found that (1) those comments could have damaged Apple’s reputation and (2) the employee had received specific training on how to use social media in his employment.

In contrast, in Whitham v Club 24 the ET found that an employee had been unfairly dismissed after she had posted disparaging comments about her colleagues. The ET found that her comments were mild, made by a junior employee and could not have damaged the employer’s reputation. Similarly in Smith v Stafford Housing Trust, the employer had wrongfully dismissed an employee who had posted comments about gay marriage on his private Facebook page. The ET found that the employer could not have been brought into disrepute by Mr Smith’s comments and furthermore, the employer’s equal opportunities policies should respect the rights of an employee whose comments reflected his religious views.

Separately, as in Teggert v Tele Tech UK Ltd, an employer will be vicariously liable when one employee posts offensive comments about another employee. Also employees who report offending posts must not be bullied or harassed (Weeks v Everything Everywhere Ltd).

Employers must have robust social media and disciplinary policies backed up by appropriate contractual obligations.

However, there is a balancing act to be done – businesses must balance their wish to protect and promote their business against an individual’s right of expression, particularly in a private setting and on non-work related activities or opinions. At the same time an individual cannot expect to make any comments they wish just because they are done in non-working hours or on a private rather than work account.

Data theft The Information Commissioner’s Office (ICO) recently prosecuted Mr Pickles who had illegally taken sensitive information belonging to 100 people before leaving to work at a new employer. The ICO prosecuted him under section 55 of the Data Protection Act 1998 (DPA) under which it is a criminal offence to unlawfully obtain or access personal data. The court fined him £300, ordered him to pay a victim surcharge of £30 and prosecution costs of £438.63.

Recruitment businesses obtain lots of personal data. As data controllers they are required to process all personal data fairly and for lawful purposes, to store it securely and to delete it when no longer required. They should contractually require all employees to comply with the DPA, have an appropriate data protection policy and ensure all employees know how to legally handle personal information. Issues often only arise when a consultant leaves to start a new job or their own business, taking client and candidate data and so the issue is seen as one of commercial sensitivity. However, this case reminds us that breach of the DPA is a criminal offence, leaving the individual with a criminal record.

Business development: Outsauce Outsauce is one of the UK’s leading providers of financing, back office support and contracting services to the recruitment industry. Run by recruitment experts, Outsauce provides a comprehensive invoice financing service, including up to 100% funding for temporary invoices, and a full suite of back office support covering everything from candidate payroll to credit control.

The company also provides a compliant umbrella solution and accounting services for businesses and contractors.

Outsauce has developed a unique offering with the Recruitment & Employment Confederation that aims to support

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members and attract new applicants; new Outsauce financing customers will be given preferential rates as well as a special offer for the REC’s Business Toolkit (Outsauce will cover the full cost for existing REC members and contribute 75% on behalf of non-members).

The REC Business Toolkit includes everything recruiters need to run their business, including key documentation, templates, advice guides and support materials. The offer is open to both existing and potential REC members.

As an added incentive to membership, Outsauce is also offering REC members zero set-up fees and a 25% discount on all fees for the first three months.

For more information call 0330 100 8686, email ask@outsauce.net, or go to www.outsauce.net

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Inspiration

Behind the scenes at the Institute of Recruitment Professionals

IRP top student Cassie Connell, Senior recruitment consultant Thorpe Molloy, Aberdeen How did you get into recruitment?

I graduated from the University of Aberdeen with a Law degree in 2010 but made the decision to indulge my passion for travel by joining a regional airline as cabin crew. After a year, I was keen to put my feet back on the ground and decided to find a new path that would combine my existing customer service and people skills.

What do you enjoy most about being in recruitment?

It is extremely rewarding when you can support someone in finding their dream job and especially when you can then track their career progression. Aside from recruitment I also manage to get involved with lots of CSR work to support local charities in Aberdeen and work with schools and colleges to deliver workshops on CV writing and interview techniques, which is a fantastic initiative.

Why did you choose to sit the Certificate in Recruitment Practice?

The Certificate in Recruitment Practice appealed as it not only covered the key aspects of my role but it also offered a greater insight into my key areas of responsibility as a recruiter – to interact with individuals in a compliant and effective way.

How did you prepare for the exam?

I spent a lot of time reading the course materials and making my own notes from them, which I then used for revision. The coursework helped to show I was on track, and I made full use of the practice tests and online webinar in the run up to the exam, so I knew what to expect.

How did you feel when you got your results and found out you were top student?

I was already over the moon just to have passed the exam; so I was totally overwhelmed when I found out I had attained the highest marks.

How do you think this will impact on your role/career?

Having the qualification has already made me feel more confident as a senior recruitment consultant and I hope that it shows my commitment to delivering the best service I can. I definitely want to continue to work in this field and remain as a credible point of contact within the Aberdeen marketplace, able to provide accurate and informed advice to the candidates and clients that I support.

IRP Award winner 2013 Best Company to Work for (more than 250 employees) Winner: Search Consultancy Grahame Caswell, chief executive, Search Consultancy Recruitment is on the up Search is performing very well this year and we’re in a great position to take advantage of the market upturn. In the past few months we’ve noticed a real leap of confidence across a range of sectors and it’s clear, as an industry, recruitment is on the up.

It’s our responsibility to give something back to the communities from which we recruit Our teams across the UK take part in charity activity through the year. One Day is a UK-wide initiative which gives employees the chance to volunteer for a charitable cause for a day.

We also have the Search Living and Giving Foundation – a charity committee which organises events, collects funds and donates to charities and organisations that make a difference to the lives of people all over Scotland.

Fundraising and volunteering motivates staff and provides a feel-good factor when they know they have made a real difference to those in need. It’s our responsibility to give something back to the communities from which we recruit.

Our biggest challenge is skills shortages As a recruitment company, our main remit is to find the right people for the right roles. Our biggest challenge is skills shortages. As we’re covering such a wide range of sectors, there are always going to be some sectors that are more heavily subscribed than others in terms of candidates and the roles available. Calibre and suitability come first – and meeting these criteria efficiently is our main objective.

What piece of advice would you give your younger self on his first day?

Get on the telephone, get out there and meet people, and start to build relationships.

To keep up to date with everything the Institute of Recruitment Professionals is doing, please visit www.rec-irp.uk.com

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Events and training

Staffing Industry Analysts holds forum for first time outside the US – and comes to London The Staffing Industry Analysts (SIA) Executive Forum Europe is coming to London in November.

It is the first time in 23 years a forum has been held outside the US. SIA executive director of Global Research John Nurthen (right) says the three-day conference will feature some of the biggest global names in staffing research.

“We are targeting the most senior-level executives, so a lot of the attendees will be CEOs or business owners.

Delegates will get a lot of useful content on trends on the staffing

industry, and a keen insight on where things are heading,” Nurthen said.

The conference also boasts a unique opportunity to network with some of the biggest names in staffing.

“We are targeting the most senior level executives, so a lot of the attendees will be chief executives or business owners.

“It also has a point of difference from any of the other Europe and UK events – it’s got an international focus,” he said.

Nurthen says delegates will hear from a world-class line up of speakers, including Microsoft’s international head of contingent staffing solutions Vincent Lattimore, and Neil Jacobstein, co-chair of AI and Robotics Track at Singularity University.

Registrations are open at www.siexecutiveforum.eu

REC City Conferences hit Manchester er The REC is coming to Manchester on 28 October as part of its City Conference tour.

This free event is designed to give members access to all the latest information and knowledge you need to develop their business.

Hot topics being discussed in Manchester include: • Market update – what’s hot, what’s growing and what’s not • How to use the Good Recruitment Campaign and charter to engage your clients • Policy – keeping you ahead of the game - What will the coalition do next?

- What is the EU up to?

• Sector updates – network and exchange ideas with peers in your sector • Skill development – we will be bringing together experts to help you develop more business and enhance the skills of your team REC chief executive Kevin Green will open the event, and highlight the latest industry and market trends.

Details are available at www.rec.uk.com/cityconferences, or by contacting the member services team on 020 7009 2100.

Recruitment Matters The official magazine of The Recruitment & Employment Confederation Dorset House, 1st Floor, 27-45 Stamford Street, London SE1 9NT Tel: 020 7009 2100 www.rec.uk.com

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Membership Department: Membership: 020 7009 2100, Customer Services: 020 7009 2100 Publishers: Redactive Publishing Ltd, 17 Britton Street, London EC1M 5TP. Tel: 020 7880 6200. www.redactive.co.uk Publisher: Aaron Nicholls aaron.nicholls@redactive.co.uk Tel: 020 7880 8547 Consulting Editor: Ed Sexton ed.sexton@rec.uk.com Editorial: Editor Michael Oliver michael.oliver@redactive.co.uk Tel: 020 7009 2173. Production Editor: Vanessa Townsend Production: Production Executive: Rachel Young. rachel.young@redactive.co.uk Tel: 020 7880 6209 Printing: Printed by Woodford Litho © 2014 Recruitment Matters. Although every effort is made to ensure accuracy, neither REC, Redactive 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 Redactive Publishing Ltd. No responsibility can be accepted for unsolicited manuscripts or transparencies. No reproduction in whole or part without written permission.

www.rec.uk.com 09/10/2014 10:47