Issue 60 April 2018
RECRUITMENT MATTERS The View and The Intelligence The final five
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Kevin Green The exit interview
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Legal Update Consultation season
Events and training p6
REC TEAMS UP WITH YOUTH EMPLOYMENT CHARITY OPERA The REC has announced a partnership with the youth employment charity OPERA. OPERA was launched in September 2017, and works with the recruitment and staffing industry to tackle youth unemployment. The collaboration will run for a minimum of five years and aims at getting more young people into work and staying in work. OPERA chief executive Esther O’Callaghan says working with the REC is an important step towards fixing youth unemployment.
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“A strategic partnership between the largest trade body for the industry and the first recruitment-led youth foundation is a crucial step in harnessing our collective power to provide a meaningful and practical response to young people facing unemployment,” she says. All money raised by REC member agencies
and donated by individual recruiters will go towards OPERA’s #thrivefund, which helps disadvantaged young people by providing a bursary of up to £500 to spend on work essentials. These can be basics such as clothes to wear to an interview, a travel card to get to work or the fees for a course, and the necessary tools and
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equipment to start a new role. REC chief executive Kevin Green says the collaboration highlights important areas for the recruitment industry to focus on: “We chose to support OPERA and to recommend it to our members for two reasons. Firstly, its purpose and focus is helping young people furthest from the jobs market to get and stay in a job. This fits with our view that jobs transform lives. “Secondly, OPERA was started by recruiters for recruiters and we are always keen to leverage and amplify the great work our industry does in supporting good causes.” REC members can make direct donations as a business, organise activities or get involved in OPERA events, such as the Recruitment Rowathon in March, the Three Peaks Challenge in summer or a bake-off competition in autumn. In addition, those who want to bring in their skills by volunteering can join the foundation.
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Leading the Industry
THE VIEW
Ensuring the industry’s voice is heard by the right people is our priority, says Tom Hadley, REC director of policy and professional services
This is the final View, says Kevin Green, REC chief executive
HARNESSING OUR RISING VOICE
FINAL FIVE So this is my last column as the REC’s chief executive and I thought I should leave with five bits of advice based on my reflections from my time leading the recruitment industry:
the most critical resource to invest in. They create your culture and define if it’s a good place to work for or not.
1) HAVE A CLEAR STRATEGY AND PURPOSE
Be loud and proud about the great work the whole industry delivers to the UK economy, to businesses and candidates. Jobs really do transform lives. You weaken your own business’ standing if you talk to clients about there being no barriers to entry for the industry and there being thousands of rogues and cowboys.
Great recruitment businesses can define two things: where and how they compete. They can also answer the question of why a client should choose you and why a potential employee would want to work at your firm.
4) TALK UP THE RECRUITMENT INDUSTRY
2) SKILL, LABOUR AND TALENT SHORTAGES WILL ONLY INCREASE
5) ENGAGE WITH THE REC
So a candidate-driven approach will be your key differentiator in the next decade. Finding, attracting and helping hire people the clients can’t find themselves will be the key to sustainable success.
What you put in is what you get out. The REC is owned by its members to lead a successful, respected and recognised industry. It can only be the voice of the industry with active member engagement.
3) IT’S ALL ABOUT THE PEOPLE
I am convinced that the best years are ahead of the UK’s recruitment industry. It’s been a privilege and an honour to serve you over the last 10 years. Over and out. What’s next?
Your people are your value delivery mechanism, they provide service to your clients and candidates. So the engagement, development and motivation of your people should always be at the centre of your thinking. Your frontline managers are
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Don’t forget to follow me on twitter @kevingreenrec
Positioning the industry’s voice at the forefront of all key employment-related debates has been an underlying priority over recent years. Regular dialogue with government ministers and representation at select committees and external events have provided an important gauge of progress and have underlined the fact that skills and staffing issues have risen towards the top of both the political and business agenda. Our recent meeting with the secretary of state for work & pensions Esther McVey, honed in on the need to boost work and progression opportunities for all as a key element of the government’s vision of a ‘country that works for everyone’. This ‘all-inclusive’ message was also a key recommendation of our Future of jobs commission, and our involvement in the government’s Inclusive Economy Partnership is providing an ongoing platform for showcasing the contribution of recruiters in this area. The latest gathering of our Marketing, Media, Creative and Comms sector group included a presentation from the Department for Digital, Culture, Media & Sport (DCMS) and underlined the government’s commitment to driving growth and creating a million new jobs in the sector by 2030. Helping SMEs in the sector to scale-up will require leading-edge hiring practices. What about the business view? The REC’s JobsOutlook shows that business confidence has now deteriorated for six consecutive months, while our Report on Jobs data indicates that employers are increasingly turning to recruiters for help as candidate availability continues to deteriorate. Our recent slot at the CIPD’s annual recruitment conference honed in on these recruitment challenges and showcased the role that recruiters are playing in helping clients to address the candidate squeeze. Our message to employers is clear: recruitment is getting harder, but our industry can help you get better at accessing the staff and skills you need.
You can follow Tom on Twitter @hadleyscomment nt
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THE INTELLIGENCE A MASTERCLASS IN LEADERSHIP: LEARN FROM THE BEST
Thalia Ioannidou, REC senior researcher Speaking of great leaders, do you have what it takes to be one? As we say farewell to our very own Kevin Green, we reflect on what it takes to be successful in this highly competitive recruitment market. Is it about investing in what you do best or seizing new opportunities? Is success the achievement of one person or the culmination of collective efforts? In our latest ‘Scale Up Workbook: How to lead, inspire and retain your people’, we asked a range of recruitment leaders who have been there and done it to share their secrets to success. The workbook collates the key lessons for recruitment
NDR / NFI UP 4.1 PER CENT YEAR-ON-YEAR The latest data from Recruitment Industry Benchmarking (RIBIndex), measuring participating companies’ performance in December 2017, shows that – buoyed by a strong final quarter permanent recruitment performance – the Median RIB recruiter delivered a 4.1% average monthly improvement on prior year NDR/NFI/GP across 2017. The 3.9% year-on-year
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professionals in a practical way to help you develop the key skills and behaviours required to grow your business. As a leader, your success is measured by how effectively you turn your ideas into action. This requires that you have a compelling vision that inspires all; one you can easily apply to what your people do every day. You need a clear understanding of what success entails, set reasonable, achievable goals and help staff to identify the necessary metrics. As a top-performing leader, you would also have a distinctive proposition to attract quality candidates and entice clients. Are you comfortable taking calculated risks and making the most of the opportunities that come your way? How do you bounce back from mistakes? Even the best of leaders make mistakes but they remain positive and re-evaluate their actions. The extent to which you bounce
back depends on the culture, team and blueprint you have in place. As clearly demonstrated by great leaders in the industry, success is not one person’s sole achievement but that of the leadership team together with a group of dynamic managers and consultants. That means motivating and valuing your people at every level of your organisation is essential in delivering sustainable results. Leading by example and leading from the front, creating a continuous learning culture and inspiring excellence in the team are at the centre of any successful recruitment business story. There is no one right way to grow your company but these are some of the key lessons to consider, reflecting on insight from those who lead a successful recruitment
The median RIB recruiter subsequently delivered a per-employee average NDR/ NFI/GP of £74k across 2017, up from £70k on the previous year.
Median RIB recruiter year-on-year change in revenues, by business line, in Q4 2017
Temp turnover +3.9%
Contract revenue +4.6%
improvement in temporary turnover and a 4.6% increase in contractor revenues in Q4 was actually weaker than average across the preceding three quarters.
business. Use the ‘Scale Up Workbook: How to lead, inspire and retain your people’ to assess your skills and learn how you can scale up your business. For the recruitment leaders of tomorrow, this wisdom could help you reach your aspirations. As the recruitment market continues to grow, what you actually do to take advantage of this growth is critically important. You can download the full report as well as complete our online interactive checklist at www.rec.uk.com/howtolead
Perm billings +26.0%
Of significant note, however, the year ended with a much needed 26% year-on-year improvement in perm fees for the median RIB recruiter in the quarter.
Belinda Johnson runs employment research consultancy Worklab, and is associate knowledge & insight director of Recruitment Industry Benchmarking (RIB) – part of the Bluestones Group. The RIB Index provides bespoke confidential reports on industry benchmarks and trends. See www.ribindex.com; info@ribindex.com: 020 8544 9807. The RIB is a strategic partner of the REC.
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The Big Talking Point
KEVIN GREEN Michael Oliver: After almost 10 years at the helm, why are you leaving? Kevin Green: I think there are two reasons really: one is personal and one about the REC. From my perspective, I’ve been doing the job 10 years, I’ve loved it, it’s been a great job, and I’ve enjoyed it every day. But I’m 55, and I want to do something else before I hang up my boots for good. I also think it’s the right time for the REC. We’ve hit our reserves policy, we’ve got a new chairman, we’ve got a new strategy defined over the next four years, so it’s a good time for somebody else to bring in a fresh perspective. MO: Let’s go back to before you joined. How did you become the chief executive?
KG: I had just left Royal Mail. I had done five years there, and that was during a period of huge transformation. When I joined in 2003, the business was losing a million and a half pounds a day. We wanted to get it ready for privatisation and so we had to do huge amounts of change. So I went in there to manage the change programme across the whole business, which was a £9bn business employing 220,000 people. And then after about six months, I ended up being parachuted in to become the HR director of the biggest business, which is the letters business. During my period, there we closed some factories, we changed the working environment, we had to do a big piece of negotiation with the trade unions, we lost 35,000 people 4 RECRUITMENT MATTERS APRIL 2018
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KEVIN GREEN: THE EXIT INTERVIEW Outgoing REC chief executive Kevin Green reflects on his time at the helm with Recruitment Matters editor Michael Oliver in that time – a huge amount of change at a blistering pace. I was approached by a headhunter about a role at the REC and they described it as chief exec of a trade association, and I said ‘well I’m not sure that’s for me, really’. They then said, ‘well it’s in the HR space’. I knew the CIPD had just appointed a new chief exec, and what was an interesting starting point was that I hadn’t heard of the REC. I started to investigate the organisation, to build a picture of what was required. And I think because I was looking at other jobs and I wasn’t sure this was right for me, I was quite provocative, and what I said just resonated with the non-execs at that time. I think they recognised that the REC needed to be modernised. They recognised that the organisation needed to become more responsive and agile to its members. It was a bit dusty, it was a bit cerebral, so I think I was a change agent and they saw that’s what was required at that time. That was hugely impacted by Lehman Brothers going down in September, and the recruitment industry’s response to the financial crisis.
MO: That’s a baptism by fire by anyone’s definition. What was the process you went through to steady the ship?
KG: It was a very difficult time. The industry went from a £27bn industry to under £20bn. That revenue disappeared within 18 months, so our members were going through a really tough time. The issue for the REC was one where we really had to think strategically about why we’re here, and what our purpose was. And actually, our members needed us more than ever – membership held up reasonably well. We normally get 90% of our members renew and it only went down to 85%. And then within about six months, I had to go to the REC’s council and say to them that we were going to make a significant loss in 2009 and that we had a choice. We took about 15% out of our running costs, which included making staff redundant, but we could have gone further. I could have got us back to break-even within the year, but to do that would have affected member services. So the council agreed to my proposal, which was
that we took some cost out, we used half of our reserves in 2009 and would be back to break-even in 2010. That’s exactly what we did. So we protected member services, we used about £550k of our reserves, which was about half, and then in 2010 we broke even. And since then every year we’ve put more and more money back, and I’m delighted to say that we have now achieved our reserves policy, so we’ve now got £1.7m behind us. The council took the right decision, we protected member services when it was needed most, and we delivered the plan as we defined it. It was a baptism of fire; it was very difficult circumstances for the organisation and the industry, but we got through it and we continued to fight the industry’s corner.
MO: Leadership is something very close to your heart – what kind of person makes an effective leader in 2018?
KG: I think leadership is an area where there is more thought needed really. A lot of people find themselves as leaders accidentally. For www.rec.uk.com
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organisation, showing if they did their job to the best of their ability, this is what it would look like. Then the other part of feedback is about helping people, giving them feedback. We all have good days and bad days; we all come to work to do our best, and leadership is about recognising how to motivate and engage each individual. Sometimes it’s giving people some robust feedback and other times it’s putting your arm around someone. And that’s because you understand each individual. You know what they’re trying to achieve and you need to be a coach and a mentor to help them see things, to look at themselves differently, to go out and learn from other organisations, to seek advice and feedback so that they can get better.
MO: What’s next?
me, there are some golden rules. One is about painting a picture of the future, about the journey that the organisation is on. I think you need some logic when you’re managing people; they need to understand progression steps that need to be taken, but you also need to create a language and a narrative about why what we’re doing is important, and what it might be like if we work even better than we are today. Secondly, it’s about communicating that
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consistently and effectively, so engaging people. I’m a great believer in that leadership is a two-way conversation. You need to listen as much as you talk, and I think sometimes that’s misunderstood. I think you then have to play a role where it’s about trying to create a leadership population and getting other people, so even if you’re the chief exec or MD, your leadership team all need to be leaders and all need to be able to engage their people and paint a picture.
MO: And that ties in with performance and accountability?
KG: Yes. You need to articulate to people what ‘great’ looks like in their job, so that people aspire to do it and so that you say ‘this is what great performance looks like’. And then your job is to support people, to develop them, to help them get there. I think that’s the second big area of leadership – painting a picture for every person within the
KG: I’ve been invited to chair the Good Recruitment Campaign for the next year, which I am delighted to continue to lead on behalf of the REC. And then what I’m also going to do is I’m putting together a portfolio of nonexecutive roles. So there will be four or five non-exec jobs, some in the HR space and some in the recruitment space, where I’m going to be helping fast-growing organisations grow and develop themselves. I’m still going to be involved in HR and recruitment. I’m sure I’ll still pop up on platforms and things and I’ll be keeping an eye on the REC and its progress as a supporter and as a champion, but hoping it goes on to even bigger and greater things. RECRUITMENT MATTERS APRIL 2018 5
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Legal update
IT’S CONSULTATION SEASON … By Lewina Farrell, head of professional services In July 2017 Matthew Taylor delivered his Review of modern working practices (MT Review). On 8 February 2018, the government delivered its response to that review, broadly welcoming its 53 recommendations. The government also published four related consultations, all of which the REC will respond to. In this article we give an overview of the consultations. 1. Consultation on agency work • There are concerns about the level of information given about pay and deductions to agency workers, in particular those who work through umbrella companies. There is a suggestion that a ‘key facts’ document should be given at the time of registering with the employment business. • Is it now time to expand the remit of the Employment Agency Standards Inspectorate (EAS) to cover umbrella companies? • Are ‘Swedish Derogation’ or ‘pay between assignments’ contracts being abused to deny equal pay to agency
workers? Should this derogation be removed in its entirety or enforced by the EAS? Responses are due by 9 May 2018. 2. Consultation on enforcement of employment rights The MT Review found that enforcing employment rights is not as easy as it should be. In particular those who are successful in pursuing a claim may not ultimately receive any financial awards made to them. The government has decided not to take forward all the recommendations in this area but will look at: • whether HMRC should be responsible for enforcing a set of core pay rights • making the enforcement process simpler • using aggravated breach penalties and costs orders as well as uplifts in compensation for repeated breaches of the same nature • whether to ‘name and shame’ employers who do not pay employment tribunal awards.
Responses are due by 16 May 2018. 3. Consultation on transparency in the labour market While the MT Review recognised the value of flexibility in the labour market there were concerns that not all workers benefit from this flexibility, that they do not fully understand their contracts and rights. The government is already taking steps to extend the right to receive a payslip to all workers and to improve the information included on the payslip. It is now consulting on: • extending the right to all workers to receive a statement of written particulars on day one • whether atypical workers should have a right to request a ‘more stable’ contract • whether to increase the reference period to calculate holiday pay from 12 to 52 weeks, and how to improve flexibility in how to pay holiday pay • for the purposes of
calculating continuity of service whether to increase the relevant break in service from one week to one month. Responses are due by 23 May 2018. 4. Consultation on employment status This consultation is not about reforming employment rights or creating new ones but whether and how status for employment rights purposes and for tax purposes can be aligned. It recognises changes in how people find work eg. through apps or online platforms and so looks at: • whether to create a new statutory employment status test • whether to change the definition of worker and relabel it as ‘dependent contractor’ • whether ‘self-employed’ and ‘employer’ should be defined in law • whether employment rights should be aligned to tax status. Responses are due by 1 June 2018.
AI COULD BE GREAT, BUT DON’T LOSE FOCUS ON THE THINGS THAT MATTER With the 21st century being a digital age, recruitment companies are forced to think of innovative ways to make sure their services are keeping up with the ‘technology times’, and right now, the subject on most minds is “how will artificial intelligence (AI) affect me and what should I be doing about it?”. AI has become the new buzzword in the recruitment industry for the last couple of years, and there is no doubt that it has its benefits. For example, AI has been used to develop Recruitment Chatbots. Candidates can receive
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answers to their job-role-related questions from AI robotic systems. Pretty impressive, I’m sure you’ll agree. However, tools such as this are only in their early stages because of the gaps in knowledge about AI’s full potential; it is all up in the air right now. Despite this, our belief is that once AI has been fully developed, it should be used to support and compliment businesses, rather than replace the interpersonal communication that is central to recruitment. In the meantime, while we wait for advancements in this ‘smart
technology’, recruiters should focus on making use of the technology that is already in full swing and proven to work. Google Analytics, Hotjar and WaveTrackR are just a few analytical tools to date that will tell you what is effectively working in your business and what is not – something that was not possible a few years ago. My message: Stay on top of technological developments while making sure you’re getting the fundamentals of recruitment right, the success will follow. David Jenkins, founder of Wave
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Inspiration
BEHIND THE SCENES AT THE INSTITUTE OF RECRUITMENT PROFESSIONALS
The View
Jaspreet Bhogal is a divisional manager at Oyster Partnership p
Andrew Vaughan ghan is a team manager ager at Advanced Resource ource Managers
WHAT I KNOW
Q&A
Best candidate story My best story of helping to transform someone’s life is actually the first candidate I placed. Eight years ago, I met someone who had just been made redundant and in the last eight years, he’s had seven temporary roles and they’ve all been through me.
What’s your best story about transforming someone’s life? My best story about helping to transform someone’s life was when I helped an IT consultant from Spain find his ideal job in the UK. It involved relocating his whole family over here. I literally walked him through, side by side, the whole process, including taking him to and from the airport, supporting him during the interview process and eventually helping him find a new home for his family.
What makes me different I like to just be a bit different and go that extra mile for candidates. I’m available from seven to seven if they need me; I take my phone on holiday too. My husband hates it, but it’s there with me. I like to offer something more than just “Okay, you need a job. Let me help you find one”. What I strive to achieve To make sure I leave a lasting impression with my candidates, I just like being different. I think recruiters get a bit of a bad rap about picking up their candidates when they need them and putting them down again. I think for me, as long as I can keep in contact with someone and show that I’m actually going to make a difference, that does help. Why candidates are the most important My tip to other recruiters hoping to transform candidates’ lives are make them just as important as your clients. I think the recruitment industry has a bit of a reputation of maybe not looking after our candidates as well as our clients, but for me I’ve always needed my candidates as much, if not more.
“I’M AVAILABLE FROM SEVEN TO SEVEN IF THEY NEED ME – I TAKE MY PHONE ON HOLIDAY TOO”
How do you go the extra mile? I go the extra mile for candidates by taking a lot of mundane leg work out of the process for them. So this might be researching the company before the interview and giving them some killer questions to ask the hiring manager. How do you set yourself up for success? I set myself up for success each day by getting in early, making a plan and focusing on the tasks that are going to yield the best results for the team. How do you ensure you continue to be a part of your candidates’ lives? To make sure that I’m having a lasting impact on candidates’ lives, I simply like to keep in touch with people, to follow their career throughout their whole journey, and make sure that I always take an interest in what they are doing. What tips do you have for other recruiters? My tips for other recruiters to help transform candidates’ lives would be to simply be honest, be polite and to communicate with your candidates throughout the entire recruitment process – and always do what you say you are going to do.
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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What’s coming up?
THE ONLY DEGREE-LEVEL QUALIFICATION IN RECRUITMENT: THE LEVEL 5 DIPLOMA IN RECRUITMENT LEADERSHIP This highly respected qualification provides the insight, practical skills and knowledge senior recruitment managers and directors need to manage and enhance processes and efficiencies within their own business. Industry-specific in content, the Level 5 Diploma in Recruitment Leadership (DipRL) is a strategic level qualification and equivalent to degree standard learning. The key topics for this qualification are: • Strategic business planning for recruitment • Leading people and teams in recruitment • Recruitment resource strategies • Financial management in recruitment • Client and stakeholder relationship management • Principles of legal and ethical requirements in recruitment • Understanding recruitment contracts
WHO IS THE COURSE FOR? Senior managers and directors looking to enhance their leadership skills will gain from this qualification.
The Diploma in Recruitment Leadership provides authoritative learning that will add value to the service you provide to clients and candidates, and help enhance your personal and professional effectiveness.
HOW IS THE COURSE TAUGHT? On-demand enrolment makes the Level 5 DipRL easy to fit around work and personal commitments, with four examination points each year. You will meet with your cohort three times to work through the seven mandatory units in year one, after which you take a minimum of one additional optional unit to fully qualify. During your study you will be provided with all learning materials and be allocated an IRP Study Coach, who will also facilitate the workshops. You can enrol on individual units for £675 + VAT per unit, or the whole course is £4,500 + VAT per person. • For more information and how to sign up, visit www.rec-irp.uk.com/DipRL to enrol today.
RECRUITMENT MATTERS The official magazine of The Recruitment & Employment Confederation Dorset House, 1st Floor, 27-45 Stamford Street, London SE1 9NT
APPRENTICESHIPS AND YOUR BUSINESS We know that our industry is experiencing financial growth, but the challenge is keeping up with that by attracting and retaining the best recruitment talent. Our recruitment apprenticeships are a great way to tackle this. The government’s changes to the way apprenticeships are funded and the introduction of the Apprenticeship Levy will result in a fundamental change to the talent strategy of your business. You can now recruit, train and grow the best recruitment talent through a funded apprenticeship programme.
RECEIVE FUNDING FOR YOUR NEXT HIRE Businesses with a payroll of more than £3m will be required to pay 0.5% of that into the levy. They will be given an allowance of £15k and the government will add 10% to the payment to fund apprentices for your business. This means if you qualify, you get paid to grow your own talent.
DON’T MISS OUT ON THIS UNIQUE OPPORTUNITY Investing in apprenticeship training means that you’ll have the opportunity to develop your staff ’s professional skills in line with your business aims and goals – helping give your company the edge over the competition in a competitive industry. The REC can also provide a specialist consultancy and advisory service for those employers interested in becoming an employer provider or full apprenticeship provider. • For more information please email info@rec.uk.com or call us on 020 7009 2100.
Membership Department: Membership: 020 7009 2100, Customer Services: 020 7009 2100 Publishers: Redactive Publishing Ltd, 78 Chamber Street E1 8BL. Tel: 020 7880 6200. www.redactive.co.uk Editorial: Editor Michael Oliver michael.oliver@redactive.co.uk. Production Editor: Vanessa Townsend Production: Production Executive: Rachel Young rachel.young@redactive.co.uk Tel: 020 7880 6209 Printing: Printed by Precision Colour Printing © 2018 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.
Tel: 020 7009 2100 www.rec.uk.com 8 RECRUITMENT MATTERS APRIL 2018
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