Issue 52 August 2017
RECRUITMENT MATTERS The View and The Intelligence Future of Jobs
Big Talking Point Post-Brexit immigration
p4
Legal Update
Awards
GDPR
Seven ways to create an IRP Award-winning entry p8
p6-7
p2-3
ADECCO’S CHRIS MOORE NEW REC CHAIR President of group operations at Adecco Group UK and Ireland Chris Moore has been elected chair of the Recruitment & Employment Confederation council, replacing Simon Noakes. Moore has worked in the industry for more than 20 years, including eight years in senior leadership positions at the Adecco Group. He has been a member of the REC council since 2013, and is a member of the REC’s Future of Jobs commission launched in June. Moore says he is excited by the opportunity. “I’ve been in recruitment for most of my working life and I’ve seen the REC grow in influence and importance to the industry. I’m delighted to have the opportunity to
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contribute to the REC vision, to help guide the organisation forward and to add value to members by providing strategic and tactical insight,” he says. “I’m looking forward to working with the rest of the council, and with Kevin
and his team to help our industry become even more successful.” REC chief executive Kevin Green says Moore is a “proven operator” who knows the recruitment industry inside and out. “This is a very exciting time for the industry – we’re bigger than ever before and the value that recruiters bring to clients becomes even more important in the context of widespread skills shortages and economic uncertainty,” Green says. “As chair, Chris will play a central role in helping us take advantage of opportunities to demonstrate the important role our industry plays in the lives of individuals, for business and the wider economy.”
REC COUNCIL 2017-18 CORPORATE DIRECTORS Chris Moore (chairman) Jeanette Barrowcliffe Jacqueline Hilton Rebekah Handford Gary Irvine Diane Martyn Sarah Thewlis Mandy Brook Simon Conington Karen Davison-Renouf Janette Withey Steven Street Aidan Anglin Allena Clarke Paul Sharpe Michelle Mellor Sarah Hopkins IRP DIRECTORS Michael Bennett Neeti Gupta Louise Hewett Mark Edwards Heather Salway Mark Channon Paul Jacobs
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Leading the Industry
THE VIEW
The REC-led Future of Jobs Commission is taking shape, says Tom Hadley, REC director of policy and professional services
An evidenced-based immigration system is vital for jobs growth, says Kevin Green, REC chief executive It’s now getting serious: the government is starting to pull together a plan for the postBrexit immigration system. The REC has argued since the referendum that we need a thoughtful and balanced approach to policy, which recognises the requirements of business. We understand the political imperative to demonstrate control of our boarders. However, we think that the British public deserve a more nuanced debate that recognises the need for more not less immigration over the coming decade. The UK jobs market is already very tight, and employers across the board are facing labour, skill and talent shortages. It’s clear that the demographics mean we will have less people of working age in our labour market in the next 10 years, so if our economy continues to grow, employers are going to find it increasingly difficult to fill their vacancies. This means that business and public services will either move work overseas or increase automation. In the REC’s latest report, ‘Building the post-Brexit immigration system’ (rec. uk.com/brexit) we make 21 recommendations to government to help alleviate the skills crisis, including: • give EU workers currently in the UK the right to stay and work
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FUTURE-GAZING • any policies which will reduce access to talent and labour from the EU should be phased in so that businesses can prepare • base the new immigration system on evidence provided by the Migration Advisory Committee and other objective bodies, following a detailed assessment of businesses needs in different sectors and regions • make sure the new immigration system is easy and quick for business. The REC is working tirelessly on behalf of our members to influence the approach to immigration after we leave the EU. However, we need your help – we want members to contact and meet their local MPs to help get the message across. We have data you can reference, template letters you can use, and where possible we will attend meetings with you. We’d also like members to link us up with local business bodies so we can provide data and align messages. Recruiters are on the front line of the jobs market – let’s make our voice heard in this important debate. I will resume my tour of the UK in August – join us in Newcastle and Aberdeen. I’ll also be hosting a webinar on the 15th, members can sign up at rec.uk.com/webinars Follow me on Twitter @kevingreenrec for all things recruitment.
In addition to our work to influence current labour market debates, such as our recent report on post-Brexit immigration, the REC has been doing a fair amount of future-gazing since launching our Future of Jobs Commission in June. Here are some of the initial discussion points identified by our expert group of employers, academics, think tanks and labour market experts: • What should a future jobs market look like? Rather than predicting what might happen, the commission is tasked with articulating what the future UK jobs market should look like, and outlining a road map for making it happen. The £35 billion question is, what kind of recruitment industry and jobs market do we want to see emerge postBrexit? • Can there be one vision that works for everyone? Can a jobs market simultaneously meet the needs of employers as well the needs and aspirations of individual workers? The commission will build a consensus about areas where there is common ground. • How can employers and individuals prepare? TREC17 was an opportunity to take stock of how employers are planning for the future in areas such workforce demographics, working patterns and inclusive recruitment. We clearly still have a need to better prepare the next generation of workers – this is an issue we’ve been talking about since our youth employment taskforce back in 2010. The commission will provide some fresh thinking on how we can finally make this happen. • What place will the recruitment industry occupy? Will technology drive ‘dis-intermediation’ or will recruiters provide an increasingly important outlet for clients and candidates seeking to make sense of an evolving jobs landscape? The move towards “more tailoredmade, output-based recruitment solutions” was flagged in the World Employment Confederation’s Future of Work white paper – a core aim of the commission is to take a view on how seismic changes to the way we live and work will impact the role of recruitment professionals. The best way to predict the future is to create it, which is why we will actively be seeking the views and input of REC members as the project progresses. You can follow Tom on Twitter @hadleyscomment nt
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THE INTELLIGENCE
On 29 June, the REC published its latest research on post-Brexit immigration, in partnership with Migration Policy Institute and immigration law specialists Fragomen LLP. The report provides fresh analysis of the ONS’s Annual Population Survey and Labour Force Survey to provide a national, regional, and sectoral breakdown of the EU nationals living and working in the UK. The report found that the EU population represents close to 6% of the population but 7% of the labour force. The EU population was also more likely to be in employment than the native population, with an employment rate of 81% for EU nationals versus an employment rate of 75% for UK nationals. The report also found significant variations of EU workers by region, with London (17%), Northern
UPTICK IN NUMBER OF CLIENTS BILLED IN Q1 2017 HELPS RESTORE NFI/GP As highlighted last month, after four quarters of negative year-on-year growth in the Net Fee Income (NFI)/ Gross Profit of the median RIB recruiter, Q1 2017 saw a return to positive territory. The latest information from the RIB Index (sponsored by Bluestones Group) highlights that, despite a continued decline in the annualised NFI/GP per
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Ireland (9%), and the East of England (7%) among the most reliant on EU labour. Looking from a sectoral perspective, EU nationals are more likely than British nationals to work in low-skill occupations. EU workers comprise 33% of food production workers, 18% of warehousing workers, nearly 14% of hospitality workers, and 15 per cent of agricultural workers. Moreover, this data does not accurately capture all seasonal workers and the true percentages of EU workers are likely to be higher. So far much of the debate around post-Brexit immigration has been focused on ensuring skilled workers are able to remain in the UK, such as healthcare workers, engineers, and academics. Whilst migrant workers in highly skilled sectors make huge contributions to the UK economy, this new analysis also allows us to consider the important role played by lessqualified EU workers in the UK economy.
THE REPORT ALSO FOUND SIGNIFICANT VARIATIONS OF EU WORKERS BY REGION, WITH LONDON
THE REPORT FOUND THAT THE EU POPULATION REPRESENTS CLOSE TO 6% OF THE POPULATION BUT 7% OF THE LABOUR FORCE
Of the 2.2 million EU nationals working in the UK, the research identifies over half a million who work in what are classified as ‘elementary’, low-skill occupations. Despite requiring no specific qualification or skill, many of these jobs are of huge national importance, such as working in distribution centres, ensuring crops are picked during harvesting windows, and working on food manufacturing production lines. Even with current migration levels, labour shortages already exist for these sectors in the UK. Not only does official data indicate more EU citizens are returning to their country of origin, REC research conducted for a forthcoming report has highlighted the difficulties that recruiters and employers have in attracting UK workers to fill these low-skill roles.
Figure 1. Annualised NFI/GP per client and the total number of clients billed versus last year (%): median RIB recruiter, Q1 2015-17 50
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-8 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Annualised NDR per client ■ Total number of clients billed v last year
client, the notable 11% uptick in the number of clients billed by the median recruiter in Q1 restored overall
NFI/GP to positive year-onyear growth (+0.6%) With no significant change in the volume of new clients
%
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6% 17% 9% 7%
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AND THE EAST OF ENGLAND
AMONG THE MOST RELIANT ON EU LABOUR
Whilst some low-skill EU workers will qualify for continued residency under the recent proposals put forward by the government, they are less likely to be included in any kind of immigration system going forward that prioritises skills and qualifications. The government needs to heed the evidence which demonstrates the importance of migrant workers in elementary roles and ensure arrangements are put in place so employers are able to access the low-skilled labour they need. as a percentage of total clients billed within the quarter, it would appear that the median recruiter has successfully maintained and/or rekindled legacy relationships. 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
BREXIT Immigration has contributed to the political, social and economic success of the UK throughout our history. However, Brexit will determine a new phase in the UK’s approach to immigration. The REC is a leading commentator on the UK labour market, which is why it commissioned a comprehensive and insightful analysis in partnership with the Migration Policy Institute and Fragomen LLP into how EU nationals currently participate in our labour market, and how this may change post-Brexit. The report – Building the post-Brexit immigration system: an analysis of shortages, scenarios and choices – outlines 21 immigration recommendations the REC wants to see once the UK leaves the EU. Recruitment Matters looks at the big six areas of focus:
SIX ASKS FOR POST-BREXIT IMMIGRATION
1) Agree a sensible settlement for those EU nationals already working in the UK (and UK nationals based in other EU states): The evidence presented in the REC report highlights that the vast majority of EU nationals residing in the UK come here to work. Their relative youth means they will be an ongoing and important source of labour as the UK’s population ages. The REC recommends the government should protect this potentially vulnerable workforce by seeking an early agreement on their future. Practical necessity means that the cut-off date for a new immigration system (that is when applications by EU nationals coming to the UK for work will not be considered under the current free
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movement of labour rules) will have to be the date the UK finally leaves the EU, rather than backdating this. Any EU national with a UK National Insurance number and currently in work should be given an ongoing right to reside and work in the UK. They are actively contributing to the labour market, are a source of tax revenue for government, and are consumers of products and services. 2) Introduce a transitional immigration system Brexit is an unparalleled opportunity to assess the relative strengths and weaknesses of the UK immigration system, and design a future system for a modern 21st-century economy. In doing so, we should build on what already works rather than start from scratch. A proposed transitional system should be outlined in an Immigration Bill as soon after the general election as possible. This interim system will allow time for extensive consultation with business and the general public, enabling government to accurately assess the needs of the UK economy. The REC asks this national conversation start as soon as a new immigration bill is announced. To ensure there is clarity for business, the REC proposes the government develops a roadmap for its immigration policy to 2022 – that is the full term of this parliament. 3) New immigration system should focus on speed, cost and predictability
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The Resident Labour Market Test is not achieving its stated aim of helping businesses find talent from within the UK, the REC says. Fewer countries are now using such tests and the REC says we too should no longer require employers to advertise roles with Jobcentre Plus. So as not to unduly penalise small and mediumsized businesses, the REC recommends significantly reducing the immigration skills charge for SMEs. A system which allows businesses and their representatives to designate certificates of sponsorship without the need for a visa would be a cheaper and more workable approach than civil servants trying to manage and inspect all UK employers and individual migrants seeking the right to work. 4) We need an immigration policy that covers all skill levels EU nationals currently make up 7% of the total UK workforce, but the percentages differ greatly by sector, occupation and region. To avoid a trade-off between sectors or regions, the new immigration system should be based on a clear understanding of need. This differentiated approach should include the ability for employers to continue to use EU nationals to fill a role when UK candidates are not available and while potential candidates from the UK are trained up and better supported into work. The REC suggests a jobseeker visa would be useful for higher-skilled roles where employers have talent
shortages and difficult in attracting people from the UK. Employer-sponsored visas have been shown to be successful in helping manage demand in other countries, such as Australia and New Zealand, and should be investigated further, especially for lower- and mid-skilled roles. 5) The UK must retain its flexible labour market To facilitate an evidencebased approach to immigration policy, there needs to be a focus on improving the data collection for temporary work-based migration. The REC says that the temporary labour market will be disproportionately impacted by a change in EU migration. To create deeper understanding of the temporary labour market, the REC wants to see improved use of real-time vacancy data, and better mapping and integration of HMRC and DWP datasets – this will also support the government’s transformation strategy. A temporary work visa that supports the self-employed, freelancers and smaller businesses to flourish should be introduced, learning the lessons from schemes such as those in Germany and the Netherlands. The validity of the approach can then be evaluated within the interim system, before any final decision is taken. 6) The future immigration system must be evidence-led and free from day-to-day political pressure The strong reputation enjoyed by the Migration Advisory
Committee (MAC) is largely due to their independence. Ultimately though the MAC can only deliver work commissioned by ministers, there is an inherent risk that narrowly drawn questions will be asked, limiting the scope for the MAC to provide comprehensive advice that works for the economy. There will always be a trade-off between immigration and economic policies but such matters should be open to full scrutiny before advice is provided, given the importance of the topic. Putting the questions to Parliament for approval, perhaps by way of a statutory instrument, would provide that scrutiny. The REC says MAC’s role should be enhanced and its independence and new enhanced role should be cemented in the Immigration Bill. The MAC and government should use data and evidence from businesses to inform its approach – we recommend a new business forum is instituted as a sub-committee to the MAC, with a specific role to help inform, design and evaluate immigration policy. Independent economic and labour market analysis from sources including the Bank of England, the Low Pay Commission and business experts must be sought to inform next steps and should be the basis of decisions made by the MAC. The full report – Building the post-Brexit immigration system: an analysis of shortages, scenarios and choices – can be read and shared at www.rec.uk.com/ brexit
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Legal update
DATA PROTECTION
THE GENERAL DATA PROTECTION REGULATION By Lewina Farrell, solicitor, head of professional services The General Data Protection Regulation (GDPR) will come into effect across the EU on 25 May 2018. Post-Brexit, the GDPR will continue to apply to any organisation based outside the EU but providing services within the EU. The government also plans to introduce a new Data Protection Bill post-Brexit. The definition of personal data Personal data is any data which relates to or identifies a living person. The GDPR will expand the definition of personal data to include both location data and biometric data. The GDPR will enhance the rights of individuals to control their personal data: • the basic principle is that individuals will have to give express consent so that their data can be processed. Express consent is consent that is actively and freely given. However there are alternative legal bases to consent including “legitimate interests” and “necessary
for the performance of a contract” – however these must be used only where appropriate. So for recruiters, legitimate interest could be used to provide work-finding services generally but express consent would be required to transfer personal data to another party, such as an umbrella company; • the right to withdraw consent; • the right to request that any incorrect personal data is corrected (rectification); • the right to request that their personal data is erased (aka the right “to be forgotten”); • the right to data portability. The GDPR will also impose new obligations on organisations: • organisations will need express consent to be able to process data. They will no longer be able to rely on pre-ticked or opt-out boxes. However organisations may also be able to rely on ‘legitimate interests’ to process data;
• some organisations will have to appoint a data protection officer (DPO) because of the nature and volume of personal data that they collect, e.g. significant amounts of sensitive personal data or because they are a public authority; • under the DPA individuals have the right to make a subject access request (SAR) to find out what data an organisation holds on them. Organisations can currently charge up to £10 per SAR and must respond within 40 days. However under the GDPR, organisations will no longer be able to charge for a SAR except where the individual makes repeated or unfounded SARs. They will also have to respond within one month, though this can be extended to two months where the request is particularly complex; • accountability principle – organisations will have to be able to show how they will comply with the GDPR ie.
that they have appropriate processes in place to inform individuals of their rights, manage requests to withdraw consent, or rectify or delete data when requested. The GDPR allows member states to apply appropriate sanctions for non-compliance including fines of up to €20 million or 4% of annual worldwide turnover (whichever is the highest) for the most serious breaches. The REC legal team have engaged with the Information Commissioner’s Office to develop recruitment specific guidance. We will support members throughout 2017 and 2018 so that they are well prepared for the changes ahead.
GDPR WORKSHOPS – COMING SOON The REC will be running a series of workshops around the UK to ensure that our members are ready for these changes. More information will be shared with members at www.rec.uk.com/gdpr
BUSINESS PARTNER: ADVANCE It’s nearly 18 months since legislation regarding supervision, direction or control (SDC) and salary sacrifice changed the rules on umbrella expenses. During that time, several misconceptions have gained traction in the industry. Here we seek to set the record straight. Under HMRC rules, contractors who are
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employed by an umbrella can still have their hometo-site travel & subsistence (T&S) expenses reimbursed if they aren’t supervised, directed or controlled on their assignment. Some umbrellas no longer offer expenses, but this is a commercial decision based on the fact that risk and liability if the rules are misapplied sit with them.
Some umbrellas claim to offer expenses when SDC does not apply, but in reality will deem 99% (if not 100%) of contractors to be subject to SDC. Others will only allow eligible contractors to claim mileage. At ADVANCE we do things differently. We take a fair and common-sense approach to SDC and give eligible contractors
(those who aren’t subject to SDC) the chance to be reimbursed not only for mileage, but also for food & drink, accommodation and travel. Interested in our FCSAaccredited umbrella with expenses solution? Call 01244 564 564, email experts@advance. online or visit www.advance.online.
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Inspiration
BEHIND THE SCENES AT THE INSTITUTE OF RECRUITMENT PROFESSIONALS
The View
Aisling Ward is a team leader at Russell Taylor Group p
Q&A Can you start off by telling us about your role? I have been working as the team leader for the Construction Management division for Russell Taylor for one year, and prior to this I worked my way up from trainee to senior consultant over three years with another national recruitment firm. Do you have a favourite aspect about working in recruitment? Making that phone call to tell a candidate that they have been successful and were offered the job! Sometimes you are completely changing someone’s life for the better – whether they have been working away from home and now get the opportunity to spend time with their family, or whether they have been made redundant and were worried about paying the bills. You are helping people with a massive milestone when they change jobs, and their reactions can be fantastic – I feel it is such a rewarding moment for the both of us. Do you have any career highlights or most memorable career experiences? Both! My career highlight (so far) was being nominated as the Best Trainee Consultant in the UK and Ireland whilst in my first year working with my previous company. This certainly gave me a boost of confidence and motivation to continue a successful career in recruitment. The most memorable experience to date has been very recent – winning a spot on a company incentive trip to Portugal from Russell Taylor for being one of the top performers in Sales; this was so much fun and a really rewarding experience for all of us, the incentive made all of Sales incredibly motivated in the run-up and it meant the four-day break was all the more enjoyable knowing I had worked hard and earned my ticket!
“YOU ARE HELPING PEOPLE WITH A MASSIVE MILESTONE WHEN THEY CHANGE JOBS”
Donna Rowlands is the business development consultant at Recruit Right
WHAT I KNOW What motivated your decision to join the recruitment industry? I got into recruitment through a relative, as my cousin used to be in the recruitment industry. They suggested that I would be suited for the challenge, so I applied to be a trainee consultant… and the rest is history! What is the best part of your job? Working in recruitment is a very rewarding experience and there are quite a few things about my job that I love. The top three would have to be getting the word out about amazing recruitment agencies such as Recruit Right and defying the bad image agencies tend to have, the excitement and rush of winning tenders for contracts with large or well-known companies that really challenge you to perform, and providing jobseekers with advice/support and opportunities for work. A lot of positives! Are there any downsides? It is a huge disappointment when contracts come to an end, especially unexpectedly, and I really dislike having to release hard-working and loyal candidates from their contracts. We all know the contractor game and understand that it happens, but it unfortunately doesn’t change the fact that it’s the worst part of the job! Can you tell us about your most memorable experience as a recruiter When I was 21 – only one year into working within the recruitment industry – I won North West Temporary Consultant of the Year. Not only was this such a confidence boost but it also came with a cash prize (safe to say I spent it on a holiday)!
“THE EXCITEMENT AND RUSH OF WINNING TENDERS... REALLY CHALLENGES YOU TO PERFORM”
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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Awards
SEVEN WAYS TO CREATE AN IRP AWARD-WINNING ENTRY If you’re writing your IRP Awards entry right now, make sure you read this before you continue. We want to make sure you make your entry the best it can be, so have pulled together our judges seven top tips to follow when creating an IRP Award-winning entry.
1. CLARITY IS KEY. BE SUCCINCT AND STICK TO THE WORD COUNT. Try not to get carried away while writing your entry – we recommend you don’t go over 500 words per category question, and this should be more than enough to get each point across. Bullet points are your friend! Be as concise as possible.
2. MAKE SURE TO READ AND FOLLOW THE ENTRY CRITERIA CAREFULLY. Everything you need to create the best entry is contained in the specific category criteria. Remember to study it and make sure you address all the points you’re being asked for. Even if you write a great entry, if you don’t answer the question, unfortunately you won’t get far. Our IRP
Awards Entry Pack lays out the specifics of what you need to include in your entry.
3. BRING IT TO LIFE. INCLUDE TESTIMONIALS AND SUPPORTING DOCUMENTS. It’s one thing saying you did something – but you’ve got to show the evidence behind it. This doesn’t just mean financials or numbers of placements – each category asks for specific supporting documents, whether that’s candidate testimonials or even testimonials from your colleagues. Great supporting documents strengthen your entry.
4. SHOW YOUR DIFFERENTIATOR. TELL US WHAT YOU DO THAT GOES ABOVE AND BEYOND. It’s important to really show the judges what makes you different. Are you doing anything innovative? Have you figured out a solution to a problem that’s really changed how you do things? Do you have lots of great testimonials? Include
this information. It may feel strange to big yourself up, but don’t be shy about shouting about what makes you the best.
5. DON’T LEAVE IT UNTIL THE LAST MINUTE. It can be tempting to leave everything right until the last minute – but it’s unlikely you’ll end up with a quality entry by following this logic. Take the time to craft your entry and give yourself time to proof-read. It’s amazing the amount of silly mistakes you can spot when taking a step back and leaving your drafted entry even for just a day.
6. CHECK AND DOUBLE CHECK. GET SOMEONE OUTSIDE YOUR TEAM TO PROOF-READ YOUR ENTRY. You may think your entry is perfect – but are you too close to it? Many of us make the mistake of missing crucial grammar mistakes, or simply not realising that we’re using too much company jargon in our entries. A good way to test this is to get someone outside your team to take a look over your entry – if someone who doesn’t know much about what you’re referring to can understand what you’re trying to say, that’s a great sign.
7. BE INSPIRING. EXPLAIN THE IMPACT OF WHAT YOU’VE ACHIEVED, RATHER THAN JUST WHAT YOU DID. It’s easy to just state what you did to achieve a goal – to hit that target or to get that business. But try and take that a step further. Our judges are interested in the impact of your actions, what made them different and how it’s changed things since. This will really make your entry stand out.
RECRUITMENT MATTERS
Membership Department: Membership: 020 7009 2100, Customer Services: 020 7009 2100 Publishers: Redactive Publishing Ltd, 78 Chamber Street, London EC1 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
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
© 2017 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.
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