Issue 44 December 2016
RECRUITMENT MATTERS The View and The Intelligence
Member of the Month
Legal update and the IRP
Events and Training
The Uber decision p2-3
Fidelis Partners
Gender equality issues p6-7
Jobs Transform Lives story p8
p4
REC TAKES LEAD IN DISABILITY TALENT PUSH The REC will be at the forefront of a new scheme designed to promote the talent of disabled workers. The Disability Confident scheme was launched at the REC’s London offices in early November by Minister for Disabled People, Work and Health Penny Mordaunt. The scheme will acknowledge employers who promote and recruit disabled people. Minister Mordaunt (right) says the scheme will create opportunities. “More than 2,400 businesses have signed up so far and this is a great start, but I want to see all employers challenging the misconceptions of the past and realising the many benefits disabled people can bring to the workplace,” she says.
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“I urge employers everywhere to become Disability Confident and make the most of this untapped pool of talent.” REC director of policy Tom
Hadley says recruiters will have a unique opportunity to open the doors for disabled workers. “People transform businesses and jobs transform lives. Dismantling barriers and
misperceptions about hiring disabled people is not just the right thing to do, it’s also a way to address candidate shortages faced by employers in many sectors,” he says. “Recruiters have a responsibility to advocate to their clients the social and business benefits of building an inclusive and diverse workforce. Many REC members are already stepping up and making a tangible difference. We’re very proud to support the Disability Confident scheme, which will play a pivotal role in raising awareness.” The new Disability Confident scheme has absorbed and built upon the Two Ticks programme. Employers sign up to one of three new levels: • Disability Confident Committed (Level 1), encouraging employers to start the journey • Disability Confident Employer (Level 2), where employers are recruiting, retaining and developing disabled staff • And Disability Confident Leader (Level 3), where they ensure they are helping others be Disability Confident too.
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Leading the Industry
THE VIEW
The UK is a big player in global work movements, says Tom Hadley, REC director of policy and professional services
Uber decision raises flexible work questions, says Kevin Green
A few weeks ago an employment tribunal upheld two Uber drivers claim that they should be entitled to holiday pay and the National Living Wage. At the REC we feel it’s important that the government looks at ‘gig’ working quickly, because this verdict raises more questions than it answers. The good news is the prime minster had already asked Matthew Taylor, CEO of the RSA, to do exactly this. We need a new way forward, which will support workers who want the ability to choose the hours they work. This flexibility often enables individuals to balance work with other responsibilities in their lives. But the option to work flexibly needs to be balanced. Individuals need access to a pension so they can save efficiently for retirement. They also need access to training so they can progress and get a decent return on their efforts. Individuals should always earn at least the National Living Wage, so we need new mechanisms which can ensure this. We need to explore alternatives to the outdated model of full time employment and self-employment as the only options. We will also be asking the Taylor review to ensure there is a level playing field in terms of regulation. Recruiters have
GLOBAL EYES
extensive regulations including the conduct regulations, AWR. Many of the new work platforms, such as Task Rabbit, freelancer.dot.com and Upwork, are not beholden to the same regulatory and compliance framework. The world of work is changing. We hope that the Taylor review will take a hard look at the future of the UK jobs market, and makes recommendations which will benefit both employers and individuals. There’s no getting round the fact that platforms like Uber and Deliveroo are very popular with consumers. We need new thinking so that consumers can continue to benefit from technical advancements, while ensuring a fair and transparent system for workers who choose to work flexibly. But with more candidates becoming available globally via technology, clients will become more dependent on experts to help them screen and check prospective employees. Digital work platforms could therefore provide recruiters with the opportunity to enhance their service offerings. We can show employers and candidates what good recruitment looks like. I am keen to hear members’ views. My email is Kevin.green@rec.uk. com or via twitter @kevingreenrec
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Post-EU referendum, the message is that Britain remains open for business and a key player on the global stage. In relation to this, the REC formed part of the official employers’ delegation alongside other members of the World Employment Confederation (WEC) – the representative body for the global recruitment industry – at the International Labour Organisation’s (ILO) recent Fair Recruitment negotiations in Geneva. Discussions with national governments, trade unions and business organisations were lively but constructive. Here are a few key messages: Tackling abuses is in everybody’s interests. According to the ILO there are 232 million migrants working across the globe. Reported abuses include deception, retention of passports and illegal deductions. Addressing exploitation is about protecting basic human rights and is also about protecting legitimate businesses. Governments must work in partnership with national recruitment federations, and industry-led certification schemes can help jobseekers and employers identify compliant providers. In emerging markets, where it remains common practice for jobseekers to be charged fees, the priority is to promote new business models. Being proactive at the global level is boosting perceptions. The ILO is part of the United Nations and brings together representatives of 187 member states to set labour standards. Non-discrimination, transparency and other key Fair Recruitment principles are already embedded in the REC Code of Practice, as well as in the Code of Conduct for the worldwide recruitment sector. Discussions in Geneva were a further opportunity to showcase the positive contribution of compliant recruitment businesses across the world. There are specific implications for UK recruiters. Principles agreed at an international level can set precedents and influence national policies, which is why we need to be in amongst it. Secondly, addressing rogue providers and creating a level playing field can open new market opportunities for UK recruiters. Finally, leading employers will be asked to promote Fair Recruitment through their supply chains, so awareness of the initiative will serve REC members in good stead. The REC is a board member of the World Employment Confederation and we will continue to work with other national federations to amplify our global voice. You can follow Tom on Twitterr @hadleyscomment ment
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0.5%
THE INTELLIGENCE WITH REC SENIOR RESEARCHER, NINA MGUNI-JONES To date, the last quarter of 2016 feels relatively calm and the UK will not experience a recession this year, as was predicted following the referendum. The Gross Domestic Product (GDP) figures published in October 2016 showed that in July to September, the economy grew by 0.5%, which followed on from a growth rate of 0.7% in April to June. Similarly, our Report on Jobs data suggests that there has not yet been a slowdown in the labour market. In October, 39.5% of recruiters stated that the number of permanent placements was higher than the previous month. This compares to 28.1% in July of this year. Looking at temporary and contract recruitment, 34.6% of
CONTINUING SLOWDOWN
recruiters stated that billings were higher than the previous month, which is in line with the reported figures in the post referendum period. Demand for staff month-on-month continues to show growth, but has shown acceleration in the months since June. Recruiters also report that starting salaries continue to grow month-on-month. For permanent placements, 18.4% of recruiters stated that starting salaries were higher in October compared to September. Whilst month on month temporary hourly pay rates continued to grow in October, this has been more muted when compared to permanent salaries. In total, 15.8% of recruiters stated that hourly pay rates were higher in October compared with the previous month. Despite the collective sigh of relief, looking ahead, there may be some cracks appearing
THE GROSS DOMESTIC PRODUCT (GDP) FIGURES PUBLISHED IN OCTOBER 2016 SHOWED THAT IN JULY TO SEPTEMBER, THE ECONOMY GREW BY 0.5%, WHICH FOLLOWED ON FROM A GROWTH RATE OF 0.7% IN APRIL TO JUNE
Figure 1: Recruiter turnover growth 40 ■ Upper Qtile ■ Median ■ Low Qtile
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20 %
10 0 -10 -20
Aug 14
Nov
Feb 15
May
FALLING by mid-teens for nearly a year. This extreme divergence in revenue growth demonstrates the importance of bench marking performance against other recruiters to maximise performance. The shrinking revenue picture is causing a similarly
39.5%
OF RECRUITERS STATED THAT THE NUMBER OF PERMANENT PLACEMENTS WAS HIGHER THAN THE PREVIOUS MONTH. THIS IS COMPARED TO
beneath the positive data. Firstly, although estimates for GDP showed that the services industries increased by 0.8%, the other sectors decreased in output, with construction contracting by 1.4%, agriculture by 0.7% and production by 0.4%. A 1% contraction in manufacturing suggests that this sector has not benefited from the fall in the value of the pound. In addition, whilst Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) reported a seven-month high in growth rates in October, the increase in input costs and fall in orders suggests that inflationary pressures may impinge on growth.
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The latest information from the RIB Index sponsored by Bluestones Group shows that the slowdown in recruiter revenues has sadly continued into the summer with median recruiter revenues in August DOWN 5.1% – making now 11 consecutive months of falling revenues (Figure 1). The picture is not so bleak for all, with some recruiters seeing a much rosier picture, with a quarter of RIB members seeing revenue growth of over 5% – although a much less fortunate quarter of recruiters have been seeing revenues
REPORT ON JOBS DATA SUGGESTS THAT THERE HAS NOT YET BEEN A SLOWDOWN IN THE LABOUR MARKET. IN OCTOBER,
Aug
Nov
Feb 16
May
Aug
bleak outlook for profitability, with Total Employee Costs to Net Disposable Revenue now at its highest level for two years, rising from 50% a year ago to 62% in August 2016. Worryingly, this increase in staff costs is leading to worsening profitability, with more than a quarter of RIB
28.1%
IN JULY OF THIS YEAR
Yet, it still remains to be seen how the wider economic conditions will impact on hiring intentions. REC’s JobsOutlook survey shows that one in five (22%) employers plan to increase the number of permanent staff in the next three months and one in four (25%) plan to increase permanent staff in the next four to 12 months. Which suggests that whilst cracks may emerge in the wider economy as we head into the New Year, 2016 will end on a sounder footing than previously forecast. recruiters now making a loss, with the lower quartile net profit margin being -3%. Median net profit margin is below 1½%, compared with nearly 4% a year ago. More than ever this emphasises the importance of careful company financial management, aided by timely industry specific benchmarking a necessity. 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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Member of the Month
FIDELIS PARTNERS
QUALITY TO THE HILT Recruitment Matters talks with Fidelis Partners’ talent acquisitions director Jacqueline Hilton about why recruitment is about the long game
Recruitment Matters: How did you get started in recruitment?
Jacqueline Hilton: I had been working in retail HR and felt hugely frustrated at being stuck in one place and so moved into sales in the FMCG market. I was looking for a new challenge and I thought, why not combine my HR and sales skills and go into recruitment, which felt like a natural fit for me. I’d be mobile, and I’d meet a wider variety of individuals and organisations.
RM: So you feel good about it? JH: Definitely, when I speak with other like-minded recruiters they see themselves as members of the business they recruit in, rather that the staffing industry. It’s a great environment and I can honestly say I don’t experience that ‘Sunday Evening Dread’. RM: How did Fidelis start? JH: I have only worked for one other recruitment business and that was for 10 4 RECRUITMENT MATTERS DECEMBER 2016
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years, where I completed my tenure as a company director. I am ambitious and as such I wanted to experience new innovative ways of working, and as a result launched Fidelis in 2007. In my role I see myself as a detective, delivering roles for our clients and seeking out and engaging the best talent. I don’t ever want to get to the stage where I feel like recruitment is simply transactional – it’s so much more than that.
along with more experienced individuals, many with whom I still keep in regular contact.
RM: You’ve got to build a business on a foundation of trust, right?
personal ones as I believe that jobs do transform lives. That is something
JH: Absolutely, it is key to a successful working relationship. I need to understand not only the professional drivers to move jobs, but also the
RM: You live and breathe your mission?
JH: I am building a business and reputation that is founded on our core values and beliefs, and bringing that to life in everything we do. During my time in recruitment I have had the privilege to have a glimpse into people’s lives. My focus it to build trust with people, as it is crucial to understand what makes people tick; this is how I ensure people have careers that work for them. I have had the pleasure of working with graduates new out of university who have gone on to build rewarding careers, www.rec.uk.com
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we should all take time out to think about for a moment when considering a change of job or career. That trust also extends to our business, to the organisations that keep us up and running. It is paramount that we equally build the same strong relationships with our suppliers.
RM: You’ve been involved in recruitment for 20 years and operated your own business for 10. What would you say to any young female recruitment entrepreneurs?
JH: There are more and more women moving into senior roles, which is great to see and thank goodness this is becoming the norm. To be honest, I wish I had launched my business sooner; it’s a contradiction really as I am not afraid to put my neck on the line for anything I believe in. So I would say to my younger self, have self-belief and manage the fear, which is a great driver and motivator. RM: What do you think about flexible work?
JH: I am a massive fan of flexible working. Modern technology is such that you could work anywhere in the world at any time. The talent market and ways of engaging have changed significantly over the past few years, whatever sector you are working in. The core hours are very fluid, you could find yourself taking calls at 7am in the morning or 7pm at night. It’s about working effectively with your talent pool and clients alike, whilst also
“THERE ARE MORE AND MORE WOMEN MOVING INTO SENIOR ROLES AND PEOPLE NEED TO GET USED TO IT. I’M NOT A FOLLOWER, BUT I WOULD CALL MYSELF A KINGMAKER” maintain a healthy work-life balance to ensure you are fit for the job.
RM: Which plays in nicely with social media and mobile work too, right?
JH: Exactly – how many people pick up a phone in the first instance? It’s super important to engage on a personal level with people either by phone, WhatsApp, skype or face-to-face – but you have got to get there first. Social media and the various platforms are great tools to identify and hopefully find a common ground upon which to engage initially – so that you can get that elusive phone number! RM: What’s in store for 2017?
JH: We’re looking at keeping it simple. Our number one driver is to
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retain our existing clients and candidates, and secondly to grow our acquisition of both significantly throughout 2017. We’ll be looking to achieve this whilst simultaneously further developing our core skills to deliver in an everevolving industry.
RM: How do you feel about being in this industry?
JH: I love the industry and its ups and downs – never a dull day! I am in it for what I believe are the right reasons; it is one of my many drivers as to why I joined REC and why I am a member of its council. I am not in need of some fancy job title or status, I genuinely want to give something back to the industry. I believe that if you treat people in the way that you would want to be treated yourself, you’ll achieve success – which is not always measured in monetary terms. It’s that simple. RECRUITMENT MATTERS DECEMBER 2016 5
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Legal update
GENDER EQUALITY Lewina Farrell, solicitor and head of professional services Last month we reported on the 10th anniversary of age discrimination legislation. Now we turn to gender equality issues. Despite over 40 years of equal pay legislation, pay inequality remains a key issue for women. In April 2015 the overall UK national gender pay gap was 19.2%. The reasons for pay inequality are well known – women are the majority of the workforce in the lower-paid, caring professions. They are also more likely to work part time are also less represented in senior roles. Equal pay claims have been around for some time. In October, more than 9,500 women who work at Asda won a step forward in their battle for equal pay. An employment tribunal ruled that the women, who mainly work in-store, can compare themselves to higher paid men who work in warehouses. Importantly this preliminary hearing has only ruled on
whether jobs in a warehouse are comparable to those in its stores. Another tribunal must now consider whether the jobs are of equal value. The difference in pay is between £1 and £3 an hour. If the claims are successful, it could cost ASDA more than £100m in back pay plus pay rises in the future. Long-awaited gender pay gap reporting, intended to tackle pay inequality, is finally expected to come into effect in April 2017 for private and voluntary sector employers with more than 250 employees. Women continue to face other discriminatory practices, including demotion or redundancy during pregnancy or on returning to work following maternity leave. Despite legislation in place, the Equalities and Human Rights Commission believe that 390,000 women per year suffer pregnancy or maternityrelated discrimination. In response, the EHRC launched its ‘Working Forward’ initiative
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to “make British workplaces the best they can be for pregnant women and new mothers”. Issues also arise during the recruitment process. Agencies have been in the news recently for recruiting only women who meet particular physical requirements. Clients can be demanding in their requirements but agencies must not accept discriminatory instructions – to do so is to invite claims under various discrimination legislation. In terms of physical requirements that could include all of sex, race, age and religious belief discrimination, both direct and indirect. Direct discrimination includes specifying particular requirements for candidates eg. aged between X and Y or a particular race only. Indirect discrimination occurs when a provision, criterion or practice is applied to everyone but this results in people who have a
protected characteristic (eg. sex or age) being placed at a disadvantage in comparison to people who do not have the same protected characteristic. To avoid allegations of sex discrimination ads should specify where the role can be performed on a part-time basis or through job share arrangements. They should also use gender neutral terms such as ‘waiting staff’ rather than ‘waitress’ in an advert. Also consider interview timings: although more men are taking on childcare responsibilities, a woman with small children might struggle to attend an interview early in the morning or the evening. Outside of legal requirements agencies have a valuable role in helping to dispel stereotypes and to build a more diverse workforce for their clients. We are limited in what we can cover in this article but REC Legal can give more detailed advice to REC Corporate Members.
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Inspiration
BEHIND THE SCENES AT THE INSTITUTE OF RECRUITMENT PROFESSIONALS
The View
Samantha Bosher is an executive recruitmentt consultant at Westray Recruitment Consultants ants
Rob Harvey is a market sector specialist at GPRS S Recruitment
Q&A
WHAT I KNOW
How did you get into recruitment? Following completion of my A Levels I secured a conditional offer to study medicine at Oxford University. Unfortunately, my father took ill, so I decided to stay closer to home in a carer capacity. When I put my focus back onto my career I wanted to stay in an industry that helped people. Westray gave me the opportunity to join the business as an administrator and… well, here I am!
How did you get into recruitment? I got into recruitment by chance really. I was working in hazardous waste management, and it really wasn’t what I wanted to be doing forever, so one night while looking through the job boards I noticed a very catchy advert for a ‘Recruitment Rockstar’ and based on the job description I thought it would be a good match for me and my skillset. I went for interview in January 2015, but just fell short of obtaining the role; however, the feedback I received was beneficial and helped me understand what I might need to improve if I wanted to get into recruitment. November 2015 came around and I phoned up the MD of the company to see if there were any positions available. I was re-invited into interview, and to cut a long story short I was successful and the rest is history, as they say.
Are there any challenges facing your sector at the moment? Working predominantly in the North East sector, historically there has been a lack of senior appointments in comparison to the exceptional senior talent. However, we have seen a sharp increase in this, which is a positive representation for the entire job market! What do you love about your job? The pleasure of working with both inspirational businesses and candidates on a daily basis. It is often uplifting to see how positive the market place really is, despite the ‘doom and gloom’ depicted in the media! The joy of presenting someone with the ideal job offer never loses its magic. What’s the biggest challenge about working in recruitment? The saturated market place – statistics state that 9,000 new agencies were formed in the UK in 2015. Inevitably this brings a host of issues from depletion of service to reduced reputation, it can often feel as though you are fighting an uphill battle. What’s the top thing a great recruiter needs in their toolkit to succeed? You need to be a genuine and resilient person with passion for the industry. Many people come into the sector purely in pursuit of financial reward; they soon see the error of their ways!
What do you love about your job? I love the variety of roles I get to see and speak about in terms of the industries that fall under the training umbrella, and I also enjoy being able to speak to people who genuinely require my help and put their trust in me to secure them their perfect next job within the WBL [work-based learning] arena. This job throws up something new every day that I never knew before, which only provides additional benefits for me, my clients and our candidates. What’s the number one tip you would give someone who was thinking of joining the industry? For anybody thinking of joining the industry, the number one tip I would give them is to ensure they have a full understanding of what the job will entail, as it isn’t for everyone. Recruitment is fast paced and hectic, and can sometimes be very stressful, but through all of that it is still a lot of fun, I find. If you’re still torn between joining the industry or not, my personal advice would be to take a leap of faith and believe in yourself. Sometimes you win, sometimes you learn!
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
WHAT’S COMING UP?
JOBS TRANSFORM LIVES STORY OF THE MONTH: Daniel Griggs from Delta Genesis Consulting Ltd shares his #JobsTransform story In 1997 I placed an engineer to do two weeks’ worth of structural assessments and calculations in Antarctica. However, because of the harsh environment and the fact that getting there and back is not
a simple task, the assignment had to be six months long to coincide with the supply ships timetable. If you also add in the fact that without email, a portable device or a mobile phone, it
was left to a tea chest of books to provide any entertainment, you can probably work out how pleased I was to fill the role. Especially as I was told by the client it was an impossible role that should have been filled in
the last weather window the year before. But to also find out from my candidate on his return what a truly life-changing time he had had was just priceless and difficult to top.
NEW COMPLIANCE TEST WORKSHOP IN EARLY DECEMBER Passing the REC Compliance Test shows you’re serious about upholding standards. It’s proof you value an industry that operates with integrity. Sitting the test doesn’t have
to be hard. We run several Compliance Workshops throughout the year. These sessions cover all 11 areas of the test, including permanent introductions and temporary supply (PAYE and
contractors). You’ll be able to take the test under the assistance of our Compliance Executives at
the end of the workshop. Our next Compliance Workshop is Wednesday 7 December and is free for all members. Beat the rush and prove you value good practice.
RECRUITMENT MATTERS
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 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
© 2016 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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