Recruitment Matters - August 2018 by Redactive Media Group

Issue 64 August 2018

RECRUITMENT MATTERS

The View and The Intelligence New beginnings

p2-3

The big talking point The digital CEO

Legal Update

Flexible working

What’s coming up

Legal Eagle and the IRP Awards p8

AGENCIES CRUCIAL IN FINDING RIGHT CALIBRE TEACHERS Ninety-eight per cent of recruitment businesses receive less than two hours’ notice from schools to place a teacher on the day, according to a new survey by the Recruitment & Employment Confederation (REC). More than three-quarters of respondents say the quick turnaround is why schools use agencies, and 66% said schools are approaching them more to find teachers with specific

@RECPress

skills for permanent placements. REC director of policy Tom Hadley says agencies are under immense pressure to find highquality teachers at great speed, relying on agencies to bring in fully-vetted and qualified teachers at short notice. “When a teacher can’t be in the classroom for any reason, pupils can’t just be passed off to existing teachers or teaching assistants in the place of a fully qualified teacher– they need dedicated resource,” he says. “We all understand the cost pressures on schools but these costs must be put in context and weighed against the cost of

employing more permanent staff or having in house recruitment banks replicate the work of specialised agencies in sourcing, and placing suitably skilled substitute teachers.” Teacher retention is a

92%

Recruitment agencies say their consultants first get in the office between 6am-8am in order to meet demand.

74%

recruiters are able to supply a teacher at least 90% of the time, despite the short notice.

84%

recruitment agencies provide CPD opportunities for teachers registered with them.

challenge, with statistics from the Department for Education showing that 26% of teachers that started in 2013 were not in post three years later – the lowest figure since records began in 1996. The REC survey shows three quarters (76%) of agencies have persuaded a candidate to remain in the teaching profession in the last year. Hadley says the importance of education agencies in finding teachers can’t be understated. “Ensuring that the right calibre of teacher is in place isn’t something that can be compromised which is why majority of them use specialist agencies for advice and support,” he says.

www.rec.uk.com

Leading the Industry

THE VIEW

The World Employment Conference has me thinking about the future, says Tom Hadley, REC director of policy

New beginnings abound for the REC and recruitment as a whole, says Neil Carberry, CEO of the REC

I am delighted to have taken up my post as the new chief executive at the REC, and penning my first column for Recruitment Matters. The warm welcome I have received from both my colleagues at the REC and also members has blown me away. The commitment from the team here is deeply impressive – and essential for our ongoing success. The recruitment industry has certainly advanced since the time I was working in the sector some 20 years ago. The transition to a more strategic and inclusive recruitment industry that is worth £32.2 billion is a testament to how our members play a vital role to the UK economy, which makes it an exciting time to join. One thing that is really important to me is to be able to talk to members on a personal level. I want our members to fully understand what is on the menu at the REC, allowing members to really feel involved – there is a lot of work that goes on here, and I want to prioritise enhancing our customer

TALKING #FUTUREOFJOBS IN DUBLIN’S FAIR CITY relationships to ensure we know our members well and are delivering products and services you value. In fact, in my first few months, I am really focused on getting out on the road and meeting with as many recruitment professionals as possible – getting to know the sectors you work in, and the challenges you face. We already know candidate availability is one of the biggest challenges facing the UK jobs market, made worse by the lack of clarity on how the UK will leave the EU. I will be working really closely with my teams to make sure that we continue to tackle this issue by speaking up for our members, ensuring the REC is visible and noisy throughout the rest of this year – making sure we are seen as the voice of the industry by government, the media and your clients. You can read my full interview with Recruitment Matters on pages 4-5. But for now, I am thrilled to be here and look forward to meeting you. There are some exciting opportunities ahead.

“THE TRANSITION TO A MORE STRATEGIC AND INCLUSIVE RECRUITMENT INDUSTRY IS A TESTAMENT TO HOW OUR MEMBERS PLAY A VITAL ROLE TO THE UK ECONOMY” 2 RECRUITMENT MATTERS AUGUST 2018

Last month’s high energy World Employment Conference, hosted by Ireland’s National Recruitment Federation (NRF), brought together over 400 industry leaders from 40 countries (including an elite squad of REC members!). The event generated a number of key messages on future labour market challenges that will resonate with UK recruiters. Here is my Dublin debrief: • Staffing and skills will remain top of the corporate agenda – David Collings from Dublin Business School underlined that “80% of CEOs fear a lack of key skills will hurt their business”. Key roles within organisations are not necessarily tied to hierarchy; flight attendants are key to the passenger experience on airlines, and cleaners in hospitals can avoid MRSA outbreaks. We need to rethink what really adds value. • Innovation is the word – economist David McWilliams underlined the need to “reward unconventional thinkers in our society”. Innovation will become increasingly key in recruitment as well as other sectors. • Making a step-change on inclusion is a priority – this is an opportunity for recruiters to develop innovative approaches. Helen Tynan, head of people operations at Google, argued that “a diverse mix of voices lead to better discussions, decisions and outcomes for everyone”. • Technology and leadership will drive further change – cultural expert Fons Trompenaars said the increasing need “to develop genuine multi-cultural leadership”. The 4th Industrial revolution is already upon us and is affecting most sectors, including recruitment, particularly with the convergence of traditional recruitment with the pure online marketplace. • The future of work means new opportunities – the sheer speed of change will provide a unique opportunity for the global industry to step up and help clients and candidates make sense of the evolving employment landscape. The industry must remain at the forefront of the future of work debate; this is the core aim of the REC’s Future of Jobs commission. ou can follow Y Tom on Twitter @hadleyscomment www.rec.uk.com

1975

THE INTELLIGENCE RETAIL RESEARCH

Thalia Ioannidou, REC senior researcher The UK’s current labour market continues to perform well, yet persistent issues are particularly challenging. Demand for skills and people is mounting, with the UK’s unemployment rate the lowest it has been since 1975. A fall in net EU migration, which is driven by a fall in EU citizens coming to the UK for work as reported by the Office for National Statistics, has further intensified candidate shortages. According to the REC’s Report on Jobs, growth of demand for staff strengthened to a six-month high in May, with sharp increases in both permanent and temporary roles. Data continued to show that demand for private sector staff continued to increase at

2017 SURGE IN NUMBER OF CLIENTS BILLED The latest data from Recruitment Industry Benchmarking (RIBIndex), measuring participating companies’ performance, shows that, across 2017 there was a surge in the average monthly number of clients billed by the median RIB recruiter. The most intense periods of pick-up were, notably, in the quarter running up to and the two quarters after the change in public sector

www.rec.uk.com

a steeper rate than that for public sector workers. Despite growth in demand for staff, candidate availability declined at a sharper rate midway through the second quarter of 2018. As has been the case since May 2013, the availability of permanent workers across the UK fell in the latest survey period, with the rate of deterioration being the most market for four months. Similarly, recruitment consultancies signalled that the number of candidates available for short-term work continued to decline at the quickest pace since November 2017. Although employers are feeling more confident in the prospects for the UK economy, following eight months where more employers felt conditions were worsening than improving, and in making hiring decisions, staff shortages are progressively becoming business critical, particularly in areas like

DEMAND FOR SKILLS AND PEOPLE IS MOUNTING, WITH THE UK’S UNEMPLOYMENT RATE THE LOWEST IT HAS BEEN SINCE 1975.

nursing, engineering, manufacturing and IT. Strong demand for staff and declining candidate availability have, in turn, underpinned further increases in starting salaries and pay of temporary workers. It is worth noting that salaries awarded to successfully place permanent workers rose at the steepest rate for three years. Meanwhile, recruitment agencies signalled a further marked rise in contract/ temporary staff pay during May, with the rate of inflation holding close to April’s twoyear record. Persistent skills shortages have also been highlighted in our JobsOutlook monthly publication, especially in sectors such as engineering, health and social care,

Average monthly total number of clients billed by Median RIB recruiter versus last year (%), Q1 2016-Q1 2018 13.8%

15%

13.1%

11.0%

10% 71.7%

0% -1.2%

-5%

-10%

Q1 2016

protocols relating the offpayroll working, which came into effect in April 2017. As such, there is potential

Q1 Q2 2017

Q1 2018

that, with many contractors seeking to exit public sector engagements, there were more freelancers available for

PERSISTENT SKILLS SHORTAGES HAVE ALSO BEEN HIGHLIGHTED IN OUR JOBS OUTLOOK MONTHLY PUBLICATION, ESPECIALLY IN SECTORS SUCH AS ENGINEERING, HEALTH AND SOCIAL CARE, EDUCATION AND HOSPITALITY.

education and hospitality. Amid the ongoing uncertainty around labour provisions once the UK officially leaves the EU, candidate availability remains a most pressing challenge for UK businesses. The Report on Jobs and JobsOutlook are unique in providing a comprehensive guide to the UK labour market, drawing on up-todate original survey data provided by recruitment consultancies and employers. See www.rec.uk.com for more on the latest recruitment and employment trends. placing with private sector clients, via existing, new and/ or rekindled relationships. Whilst marginally down (-1.2%), in Q1 2018, on prior year numbers, the comparator was a quarter when there was an average 11% year-on-year surge in client volumes. 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.

RECRUITMENT MATTERS AUGUST 2018 3

The Big Talking Point

INTERVIEW

THE DIGITAL CEO

It’s a time of change for the Recruitment & Employment Confederation, and its new chief executive Neil Carberry is determined to put members at the forefront. He tells Recruitment Matters editor Michael Oliver what his plans for his first 100 days are, and why members can expect a more digital REC Michael Oliver: What’s brought you to the REC?

Neil Carberry: Personally, I felt it was time for a change and a new challenge. I wanted to do something which had more commercial impact for a sector, so I’m very driven by making sure the REC puts its members first. Clearly there’s an opportunity as chief executive to really drive that. And professionally, it’s a fascinating time to be back in the recruitment sector. You’ve got huge challenges coming down the track around technology and society’s expectations of work – big potential changes in terms of the British labour market. Every business I talked to while I was at the CBI had finding the right people as 4 RECRUITMENT MATTERS AUGUST 2018

the first thing on their list. With that in mind, there is no sector that is more crucial to our continuing success as a nation and our prosperity than recruitment, so it’s great to be back in it.

sector is just how much value good recruitment adds to clients, and what good client service looks like. It’s something that I’ve always been passionate about.

Michael Oliver: Michael Oliver: With your previous involvements in the industry, albeit some time ago, is it something you’ve always thought about returning to?

Neil Carberry: I spent four years recruiting in the City in the late 90s and early 2000s. I enjoyed working in it then, but I wanted to explore something else when I left it. I wanted to do some work around industrial relations and the CBI gave me an opportunity to do that. But the two things I took from that time in the

What are your impressions of the REC as it stands?

Neil Carberry: The REC has a unique position and it offers members significant support in terms of how they run and develop their own business. It has a unique voice in terms of speaking for the sector, and an authority which comes from much of the research work that’s been done and the professional standards we hold members to. One of the things that members tell us that they want the REC to do is really

lead for the sector in making the case for the value it adds. That’s about demonstrating the contribution the sector makes to the UK in everything that we do. So, there’s a really strong base at the REC to do that – especially if you look at the training, the advice we offer members, the kind of Scale Up work we do for firms as they grow, as well as the excellent work people like Tom Hadley have been doing on the policy side. There’s a strong core there. What I want to do coming in, is enable that team to fly. And what I mean by that is making sure that the REC is more focused, that it’s very clear about what members are asking for and delivering that well, and it’s noisy. The REC has a strong platform, which we need to use really well in the interests of the sector. www.rec.uk.com

Michael Oliver: What are some of the REC’s big challenges right now?

Neil Carberry: Digital and modernisation is a big part of my agenda, and the REC is already beginning to do some work around that in terms of how we look after members. Part of that is a process that I’ve been heavily involved with at CBI around segmentation, which means making sure that each individual firm is getting a menu of products from the REC which is best for them. We’re going to be thinking a lot more about how we listen to members and tailor our offer to each individual member. We’re going to be doing more digitally and that will, of course, support our reach so that more recruiters www.rec.uk.com

in the industry will see and hear and feel and touch the REC every week, every month, every year. My other big goal is around voice. If you look at a sector organisation like the EEF in manufacturing, you see a body which has significant access and punch. The REC has the potential to operate at that level. We can be one of the most powerful voices around jobs in the media and in government on behalf of members, but there is more to do more to secure that.

Michael Oliver: Thinking beyond the REC, what are some of the big challenges the recruitment industry faces?

Neil Carberry: We have the highest

employment rates that we’ve had in living memory and the lowest unemployment rates. So the fundamentals for recruitment are strong. Clients need to find the right people – but candidate availability is tight. The technological challenge that is coming, though, is this idea that recruitment can in some way be commoditised so that it just becomes a margin game for firms. One of the things we must do is demonstrate that good recruitment is not just a process. It’s about understanding client need and finding the right candidates and supporting those candidates into position. It is a professional service, not a commoditised manufacturing process. And as the REC, we have got to help members to help clients understand that.

valued and by workers and companies alike, and that it opens up opportunity for staff.

Michael Oliver:

How do you want the REC to shape the labour market in general?

What do you want to have achieved during your first 100 days as chief executive?

Neil Carberry:

There’s a lot of debate around both what the post-Brexit immigration system is, but also around flexibility in general, where there’s a school of thought in some quarters that says that anything that isn’t an openended direct employment contract is in some way poorer quality. I spent 14 years fighting that idea at the CBI, because flexibility is critical to the heart of national prosperity. And I think the REC must step up on that... We have to demonstrate that temporary and agency work is hugely

We’re going to our Council about the REC’s overall strategy during the summer, but in the first few weeks I want get cracking on mapping our offer to the sector and focusing it more on what members really want. I also want to make sure we are noisy through the summer and autumn on the issues members really care about. Finally, I need to get on the road. Spending some time visiting members is critical. I’ll be gathering their views and understanding their businesses better as part of our strategic review.

Michael Oliver: And what role will compliance play in that?

Neil Carberry: While what happens in our industry is high quality, and really effective in demonstrating value to client and candidate alike, we do need to make sure that we’re maintaining the role of the REC as a guarantor of standards. It’s vital to demonstrate, and if you have an REC badge on your door you’re hitting a standard that clients and candidates can trust. That’s really important to me, and if we don’t get it right it will damage the ability of the REC and the sector more broadly to be influential on other issues.

RECRUITMENT MATTERS AUGUST 2018 5

Legal update

Inspiration

FLEXIBLE WORKING

BEHIND THE SCENES AT THE INSTITUTE OF RECRUITMENT PROFESSIONALS

By Bunmi Adefuye, solicitor and commercial adviser at the REC An employee’s request to flexible working could stem from changes in their personal circumstances, which could be for health reasons or she/he needs to care for a loved one. The employer’s requirements for the role must be considered and the best outcome is when the employer and employee’s needs are reconciled. No employee has an automatic right to work flexibly but has the statutory right to make the application and the employer must process it properly. A flexible working request is typically to change the hours, the location or when the work is done. This could include different working patterns such as working from home, job sharing or parttime working. Previously only employees that had to care for a child under age 17 (or 18 for a disabled child), or for an adult relative, could make an

application. However, from 30 June 2014, any employee that has 26 weeks continuous service and has not made a request in the previous 12 months can make a flexible working application. The Employment Rights Act 1996 and the Flexible Working Regulations 2014 specify the contents of a flexible working application, which must be in writing, dated and: •c onfirm that it is a request for flexible working; •e xplain the changes required; • s tate the date when the changes should be made; •e xplain the impact on the employer and how it can be dealt with; and •c onfirm whether a previous application has been made and when. When the employer receives the application, it must be discussed with the employee. An employer is legally required to deal with the application

promptly and in a reasonable manner. Instead of considering the negative impact on the business, the employer should assess the possible benefit to both parties. When a decision is made the employee should be notified in writing and the process must be completed within three months, although it can be extended if agreed by both parties. As the employee does not have an absolute right to work flexibly, there are permitted business reasons where an employer can reject the application: • additional costs; • detrimental impact on customers’ demand; • inability to reorganise work among staff or recruit more staff; • detrimental impact on performance and quality; • insufficient work during the proposed hours; or • planned structural changes. Notwithstanding the above,

an employee can issue an employment tribunal claim if: • the decision to reject the application was not based on a permitted business reason; • they believe that the employer did not deal with the statutory request in a reasonable manner or within the timeframe; • the decision was based on incorrect information; or • the request was revoked but the employer was not entitled to do so. If the employee is successful, the employment tribunal could instruct the employer to reconsider the request, or pay the employee compensation, which could be up to a maximum of eight weeks’ pay. Now that more employees choose to work flexibly, at times and in locations that fit around their lives, employers should be consistent, not discriminatory and consider applications in a fair and accommodating way.

The View

Rebecca Simkiss is a managing director at SimkissGuy Recruitment

Anne Corder is the managing director of Anne Corder Recruitment

Q&A

WHAT I KNOW

Congratulations on your recent Director of the Year Awards nomination To be recognised for such a prestigious award is an honour and I’m so proud that it is for our Corporate Social Responsibility. CSR is something that is truly at the heart of all we do as a company, with it ingrained in the SimkissGuy Recruitment ethos. Giving back is something I’m truly committed to and I’m lucky to have built a team that reflects this at their core too.

What is the background of Anne Corder Recruitment (ACR)? I started Anne Corder Recruitment in 1995 with a background in HR, working for major organisations in retail, manufacturing and service sectors.

What kind of work do you do? We support a number of local organisations, who all do phenomenal work to help people across the city [Birmingham] that we’re proud to call home. For us, it isn’t just about one fundraising day a year; we’re passionate about providing a platform for causes to be heard by new audiences, by giving them opportunities to speak at SimkissGuy Recruitment events, advocating for them in our networks and using our skills to advise those who need it most. What makes your approach to CSR different? I wholeheartedly believe we would not have the reputation we do across the region were it not for our unique approach to CSR. In an industry that is seen as cut-throat, we are not afraid to stand alone, to be different, and to use our network and connections for the greater good of the region. I think the SimkissGuy Recruitment model is one which is easily relatable, and very adaptable to every business across the West Midlands and beyond, and I challenge business leaders to pledge to do more.

“FOR US, IT ISN’T JUST ABOUT ONE FUNDRAISING DAY A YEAR; WE’RE PASSIONATE ABOUT PROVIDING A PLATFORM FOR CAUSES TO BE HEARD BY NEW AUDIENCES”

How would you describe your unique selling point? Our different business model: we have a team approach – we’re focused on finding the right person for the right job each and every time. Our model has enabled us to retain talent – therefore our knowledge of clients and candidates is excellent. What was behind the decision to not pay commission to consultants? My aim was to build an agency based on a culture of listening – not one with an invasive sales approach. A commissionbased model simply didn’t fit that: I had to find an alternative. How does a commission-less model affect the culture of ACR? We’re not plugging away at a quota of morning calls, we’re all engaged in the business. We’re up and about meeting and greeting candidates and clients, collaborating together and celebrating the success we are having as a team. We have a lot of fun! What do the next 12 months for ACR look like? Despite the political and economic landscape, we’ve not seen any signs of recruitment slowing down – perhaps that is because businesses are looking to partner with an agency that isn’t about quick wins but aims to provide them with the right employees for now and into the future.

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

6 RECRUITMENT MATTERS AUGUST 2018

www.rec.uk.com

RECRUITMENT MATTERS AUGUST 2018 7

What’s coming up?

RECRUITMENT MATTERS The official magazine of The Recruitment & Employment Confederation

Dorset House, 1st Floor, 27-45 Stamford Street, London SE1 9NT

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 AUGUST 2018