RM January 2020

THE VIEW AND THE INTELLIGENCE

Raising the bar for recruiters p2 BI G TALKI NG POI NT

Prioriঞes for the year ahead p4

Recruitment Issue 81 January 2020 Matters

LEGAL U PDATE

Understanding wri en statements p6 PRODU CTS AND TRAI NI NG

2019 IPR Awards winners p8

A manifesto for government

New government must prioritise making great work happen M

ake a firm commitment to growth and opportunity in 2020 – that’s the call from the Recruitment and Employment Confederation (REC) to the new government.

Before the election, the REC published a manifesto encouraging all political parties to adopt policies that boost the economy, support jobs and make great work happen. It called on the new government to: • Ensure that good work and flexibility go hand-in-hand by designing policies that support the increasing number of people who choose flexible work. A priority is to unlock progression through access to training and reforming the Apprenticeship Levy.

• Harness brilliant recruitment to drive productivity and inclusive growth by putting people at the heart of the industrial strategy.

@RECPress RM_JAN 2020.indd 1

The REC wants to work with government on a new ‘Good Recruitment Taskforce’ to help drive good recruitment.

• Create an environment for great businesses to thrive by ensuring regulation is fit for purpose. Delaying IR35 changes until it’s clear that compliant firms won’t lose out, with effective regulation of umbrella companies, is a necessity; as is an immigration policy that

Businesses are ready to work with the new government to support jobs

Making great work happen

addresses skills and labour shortages.

• Take the lead on the future of jobs by ensuring regulations keep pace with technological change to protect workers – tapping into the expertise of recruitment professionals to pre-empt disruption and facilitate career transition.

“Few things matter more to people than their job. Policies to make great work happen should be a priority for the new government right from the word go and businesses are ready to work with the new government to ensure the jobs market remains strong and versatile,” said REC Chief Executive Neil Carberry.

“We’re now renewing our pre-election asks, which together would support and protect workers while boosting business growth. This is a critical time for the economy as REC data shows business confidence is at a low ahead of Brexit. But it’s an opportunity for the new government to get 2020 off on the right foot and take steps now to support jobs and growth”.

www.rec.uk.com 05/12/2019 10:40

Leading the Industry

the view...

2020 is the year of the professional recruiter. It’s time to set ourselves apart, says Neil Carberry, REC Chief Executive

A b

new year is a chance to make a commitment. Mine is that as an industry we can come together and demonstrate the case for our value as a professional service, selling the human skills we bring. This will be the difference between surviving and thriving.

A new year is also a chance to renew. You’ll notice that this is the first Recruitment Matters under our new brand – for an REC fit for the road ahead. At the core of our new approach is promoting the professionalism of recruitment and you’ll see that coming out even more in what we say and how we do things.

Recruiters are needed now more than ever

2019 was bit of an uncertainty rollercoaster. But it’s important to start the year with some optimism, as well as realism about the challenges.

Our monthly ‘JobsOutlook’ study saw employer confidence in the economy slowing, translating into fewer job vacancies as business played it safe. But firms want to do more, and they have confidence in themselves to grow.

Even more tellingly, three quarters of employers told us they had little or no capacity to take on more work without needing to hire additional staff.

Talk to any CEO and they’ll tell you that accessing talent is their biggest worry.

This isn’t a recent problem – REC data has shown growing skills shortages across a range of sectors. Recruiters can help them bridge the gap between what they need and the mountain of talent that’s out there. Our challenge is to show that recruiters are more than a quick fix solution to a skills shortage. That this industry is more than matchers and dispatchers – it’s a professional service which can add value across many areas of the business.

Three ways for making the case for good recruitment

Firstly, it’s how we help to make businesses realise that success starts with good recruitment. From flexible working practices and diversity & inclusion, to investing in skills and innovation, recruiters are ideally placed to advise businesses on creating environments in which people can perform at their best.

The REC’s Good Recruitment Collective is all about making that case to business. Nearly 500 companies have joined us committing to best practice in recruitment; 90% of employers already value recruiters specifically for their expertise, but more firms need to start buying their services on value, not just price.

Secondly, it’s about convincing government that good recruitment is essential to solving the UK’s productivity puzzle. Skills help drive the economy, and recruiters help businesses plan their future workforce and invest in skills.

We help people move away from shrinking industries into new areas. And REC members have access to the local knowledge that can support those endeavours.

Thirdly, it’s about us. We have to ensure the REC badge is meaningful. This means practising what we preach and celebrating success. Our industry awards in November were a showcase of the brilliant outcomes recruiters can achieve. And as we approach some big changes this year – like IR35 in April – ‘low road’ routes to compliance that conspire against workers must be avoided.

It’s 2020. A new decade. A time to set ourselves apart.

Let’s make it clear this year that the specialist, professional service recruiters deliver is what makes great work happen, so everyone wins.

“Talk to any CEO and they’ll tell you that accessing talent is their biggest worry. This isn’t a recent problem.”

If you want to keep up to speed with all things recruitment then follow me on Twitter @RECNeil @neilcarberryrec

2

Recruitment Matters January 2020

RM_JAN 2020.indd 2

05/12/2019 10:40

Leading the Industry

the intelligence...

39%

2020 – A year of challenges and opportunities

Brits have worked as a temporary agency worker

Thalia Ioannidou, Research Manager

J

ust as last year, 2020 will have its challenges – as Brexit again unfolds and the government extends the IR35 rules into the private sector.

But there are opportunities still out there.

The world of work is evolving

As businesses look for flexible labour to meet demand, flexible work remains a significant and steady feature of the UK labour market.

Our latest report, ‘Flexibility works: why people choose flexible work’, reveals two in five Brits (39%) have worked as a temporary agency worker, contractor or freelancer. People choose to work this way for many reasons.

Finding work and earning money quickly are important drivers, as is learning new skills and career progression.

Recruiters can great flexible work happen

62% who had secured temporary work through an agency were satisfied with the service provided

73% of employers who find staff via a recruitment agency are satisfied or very satisfied with the service provided JobsOutlook

10% increase in perm starting salaries Average permanent placement salary, Q3 2018 and 2019 £33,615 £34,000

£30,647

£25,500 £17,000 £8,500 £0 Q3 2018

www.rec.uk.com

RM_JAN 2020.indd 3

Q3 2019

The ‘Good Work’ agenda in Westminster has demonstrated how working through an employment business is more regulated than other forms of flexible work. Employment firms provide the right conditions needed to fuel the labour market with the two-way flexibility employers and workers want.

The recruitment industry has done well to meet the everchanging needs of both employers and candidates. The number of permanent placements made and the number of temporary and contract workers on assignment in 2018/19 remained strong and, according to our latest Recruitment Industry Trends, the industry grew year on year.

Satisfaction levels registered among employers and workers

At £33.6k, the average salary of permanent placements made by the average recruiter in the RIB Index was 10% higher in Q3 2019 than a year earlier.

Around 43,000 UK businesses, with 50+ employees, are currently assessing

were also strong. Seven in 10 employers (73%) who find staff via a recruitment agency are satisfied or very satisfied with the service provided ‘JobsOutlook’ November 2019). Similarly, three in five people (62%) who had secured temporary work through an agency were satisfied with the service provided (‘Flexibility works’).

Economic and legislative changes as well as slowing global growth are expected to put a strain on businesses and affect hiring activity this year. Recruiters will be faced with unpredictable demand and volatile decisionmaking. But it is in uncertain times like these that the recruitment industry has proven it has a vital role to play in providing strategic advice that employers need.

whether their contractors should be deemed as PAYE employees from April 2020 to comply with IR35 rules. Agencies will be busy into 2020 finding permanent placements for freelancers who are pursuing this opঞon or discussing temporary to

permanent transiঞons for exisঞng workers.

For those considering such a move, most starঞng salaries will be higher than the UK average. This acঞvity, adding to regular wage growth of 3.6% in the same period, will be contribuঞng to the 10% rise year on year.

Belinda Johnson runs employment research consultancy, Worklab, and is Associate Knowledge & Insight Director of Recruitment Industry Benchmarking (RIB). The RIB Index provides bespoke confidential reports on industry benchmarks and trends. www.ribindex.com

January 2020 Recruitment Matters

3

05/12/2019 10:40

Future of jobs

big talking point

Get ready for the future, now Tom Hadley, REC Director of Policy and Campaigns, gives his take on the priorities recruiters should be focusing on in 2020.

T

alk about the future of jobs, and images spring to mind of rampant robots overtaking workplaces across the land leaving trails of disruption.

The long-term implications of artificial intelligence, automation and demographic trends are hot topics for debate. There are, however, other more immediate concerns for the many recruiters who are busier than ever looking ahead at the next day, rather than the next decade!

But what can forward-thinking recruiters do to protect their business and drive growth in these uncertain times?

This is the core theme of REC regional workshops over the coming year. But, based on the feedback from recent events in Bournemouth and Birmingham to name a few, and from the annual REC Future of Jobs Summit, here are some of the big ticket items that will make a difference in 2020.

Be the expert your clients need you to be

Recruitment is getting harder.

Employers need to get better at it.

And a big part if this ‘betterment’ process is building genuine partnerships with the right recruitment experts.

With skills and staff shortages intensifying in many sectors, the need for new solutions to emerging workforce challenges and societal changes will set the tone for 2020.

4

Recruitment Matters January 2020

RM_JAN 2020.indd 4

05/12/2019 10:40

The top three external factors shaping the future of work Brexit/political stability 79% AI and automation 60% New regulations 56%

At the REC’s Future of Jobs Summit in November, Denis Pennel, Managing Director at the World Employment Confederation, talked of the rise of the “on-demand” economy and the increasing need for firms to be agile.

Business services need to be scaled up and down to meet demand and resources flexed accordingly. That has direct implications for workforce strategies and working patterns.

The faster things change, the more strategic recruitment professionals will be called on to help clients and candidates make sense of the evolving landscape. This is already reflected in the REC’s ‘JobsOutlook’ data, with 90% of employers citing ‘access to expertise’ as determining which recruitment partner to work with.

So how can we make the most of this in 2020?

The REC’s local intelligence reports in partnership with EMSI set the ball rolling with local jobs market analysis and we will be building on this with a series of regional workshops with LinkedIn. These will focus on how recruiters can use regional jobs market data to build more strategic relationships with clients.

Get to grips with what technology means for your business

Technology is continually evolving and affecting the way recruitment works.

It’s providing new tools for recruiters as well as new forms of competition.

The majority of recruiters recognise the opportunities.

They don’t see technology as an existential threat.

Instead they realise that they need to do the best possible job for clients and for candidates to ensure that what they do is not ‘automatable’. The ongoing need for that ‘human touch’ was an upbeat message from the last Future of Jobs Summit.

But the industry is at a stage where we need to do more to share experiences about what works and

(source: Future of Jobs Summit, 2019)

what doesn’t. We need to take a view on what technology can be harnessed and what can be pushed back on. When the REC gave evidence to the All Party Parliamentary Group on AI last year, the core message from MPs and AI experts was that ‘just because you can, doesn’t mean you should’.

Ethics around AI in recruitment procedures will be a hot topic over the coming year. The REC will be feeding into this and ensuring that online platforms and recruitment apps meet the same standards as established recruiters. This was one of the main points in our manifesto for the new government and is at the heart of our ongoing dialogue with the government’s Centre for Data Ethics.

Be ahead of the game

Tech isn’t the only game in town. Political, demographic and attitudinal changes all pose challenges in the world of work too. Good recruiters will already have strategies that take these shifts into account.

On political challenges, you need to pre-empt what Brexit scenarios might mean not just for your own business, but for clients and candidates. The REC’s Brexit Hub is there to facilitate these reflections. On regulation, recruiters will gain traction and recognition by understanding what new rules mean in practice and spreading the word to clients

Future of jobs

and candidates. The increasing number of REC members hosting client (and sometimes candidate) events, shows that the ‘experts in our field’ differentiator is gaining ground.

Being ahead of the game also means spreading the word internally. A big priority for recruiters in 2020 will be to equip front-line recruiters with the skills, knowledge, awareness and confidence to have different sorts of conversations with clients.

‘Recruitment Professionals’ is more than just a tagline. It’s about redefining recruitment as an integral part of the UK’s professional services sector.

Go the extra mile

You might need to keep a close eye on costs and efficiencies, but ensuring compliance and maintaining professional standards is a given. Together we also need to go that step further and be more proactive in singing the industry’s praises as a force for good and driving productivity and economic growth.

Driving change around diversity and inclusion is a good example of this. The REC will continue to use our Inclusive Recruitment Forum to showcase best practice and to support external programmes such as the Recruitment Industry Disability Initiative (RIDI). Other ways to create change include being active in our communities, and helping to build better bridges between education and work through the REC’s 200+ Future of Jobs Ambassadors network.

It’s important to run profitable, compliant businesses, but by going the extra mile and doing the right thing, we can show how we make a difference not only to the country’s economy, but to so many people’s lives. Making great work happen, that’s what we’re all about in 2020!

January 2020 Recruitment Matters

RM_JAN 2020.indd 5

5

05/12/2019 10:41

Employment rights

legal update Written statements from day one

By Bunmi Adefuye – Senior Solicitor, REC

F

romb6 April 2020, every new employee and worker will have the right to a written statement from day one of their employment.

In 2018, the government amended the Employment Rights Act 1996 (ERA 1996) with regards to written statements. Currently only employees receive written statements within two months of employment if the role will last for over a month. But come 6 April, this will change and will apply to both employees and workers from day one.

So what should a written statement include?

Everything must be set out in one document and include mandatory information under the current section 1 of the ERA 1996.

This includes the name of the employer and employee, date of

Stand by for the new REC

Follow our journey here: www.rec.uk.com.

6

Recruitment Matters January 2020

RM_JAN 2020.indd 6

“Recruiters must agree terms with workers before finding them work.” employment, period of continuous employment, pay intervals, holiday pay and so on.

But from 6 April 2020, the written statement must also contain: • Days and times the worker is required to work • Duration of the contract • Notice periods • All remuneration, not just pay • Entitlement to sick leave and pay • Other entitlements such as maternity/paternity leave • Training entitlements • Duration and conditions of any probationary period.

And what does it mean for recruiters?

For recruiters that supply workers, the obligation to provide a written statement under the ERA 1996

O

ver the course of 2019, we’ve thought deeply about the REC’s purpose and future. We’ve worked with our members and stakeholders to make some exciting changes. And in November, we launched our new look at the 2019 IRP Awards. We’ve replaced an outdated brand with designs that are modern and relatable.

But more importantly, our new brand clearly sets out who we are, and how we support the industry.

We also replaced the IRP brand with ‘REC Professional’ for continuity. Our individual members told us they’d prefer to be closer to the REC brand as it’s the one that their clients and candidates know and understand.

is separate from the Conduct Regulations (the Conduct of Employment Agencies and Employment Businesses Regulations 2003). The Conduct Regulations set out specific documents that must be provided to the worker at different stages of employment or engagement.

Recruiters must agree terms with workers before finding them work. Specific information must be obtained from the hirer about the role, and passed on to the worker before the assignment begins.

From 6 April 2020 there will also be a further obligation to provide a ‘key information document’ before the terms are agreed with the worker. Recruiters must bear in mind that the additional information in the written statement under the ERA 1996 exceeds what is required in the Conduct Regulations.

The REC agrees that there is a lot of duplication to the information required. As the timings for issuing the documents differ under both pieces of legislation, the process has to be carefully managed.

We will soon publish documents to assist members in meeting their obligations under both the ERA 1996 and the Conduct Regulations 2003. In the meantime, visit the REC’s Good Work hub online for more helpful information.

Similar motivations have led us to change the name of the GRC from ‘Good Recruitment Campaign’ to ‘Good Recruitment Collective’ – a growing network of over 500 companies employing more than 3.5 million workers in the UK. And launching in 2020, our new website coupled with our new CRM will be a powerful resource for corporate and professional members. It will be much easier to find the information you need, so that no matter how the jobs market changes your first port of call will be the REC. Now more than ever the REC is your organisation, on your side. www.rec.uk.com

05/12/2019 10:41

Inspiration

Andrea Prendergast,

Managing Director, Ryder Reid Legal, on flexible working People have lives outside work.

If you want a loyal, mo vated workforce, it’s important to recognise that goals and interests outside work are o en what give people the drive to succeed in work.

Flexible working doesn’t mean working less hard.

Recruitment is mepressured and there are things you need to react to quickly. But by working smarter and being organised, you can switch off when you need to.

You don’t have to sell your soul to be the best.

www.rec.uk.com

RM_JAN 2020.indd 7

Q&A

What I know

Behind the scenes with REC Professionals

with my second child the day I signed the deal for my management buyout of Ryder Reid. It’s been a challenge, but I’ve made it work.

As a company, we’ve focused on wellbeing since the MBO; we’re very open to flexible working and we’ll try to an cipate requests.

I’m currently on a phased return. As a breas eeding mum, I set aside me in the office to express – and when I’m not working, people know only to contact me in an emergency.

Leadership can set the tone.

People shouldn’t apologise for their flexible working request.

I have two children under the age of three and my business partner is a hands-on dad. I actually found out I was pregnant

It’s important to be realis c about your workload. But remember that there are clear advantages for your employer too.

Tony Ward and Dominic Coyne, founders, BuildSpace, on life after an MBO

After your MBO from UKL Group and subsequent rebrand, you’ve focused on being “deliberately different”. What does that mean?

Recruitment is generally only as good as the sales people in the team.

But we’re innovators and we’ll use the latest technology to drive efficiency and generate the best quality candidates in the market faster than our compe tors.

We don’t rely on CVs – we’ll send clients videos of candidates. We’re using AI, automa on, chat bots and machine learning.

We champion our candidates as much as our clients. But we’re si ing for gold, and technology helps with the first few si s.

We can also build

clients microsites within our website.

We’d rather be an extension to somebody’s business than take a sca ergun approach to winning it. And when clients’ biggest headaches are the me it takes to hire and the quality of CVs they receive, we’ve got a solu on to improve that process.

What about the challenges of rebranding the business?

The biggest challenge has been driving internal change. We had to persist with it and really sell the benefits. But we’ve been good at spo ng the opportuni es, and we’ve got strong rela onships with our clients, who appreciate our fresh approach. We’ll grow our headcount significantly in 2020.

January 2020 Recruitment Matters

7

05/12/2019 10:41

Products & Training

IRP Award Winners Recruiter of the Year Georgia Walden (pictured below), Hyper Recruitment Solutions Lifetime Achievement Debbie Caswell

Temporary Consultant of the Year Winner Josh Howell, Evolve Hospitality

Lifetime Achievement Grahame Caswell

In-House Recruiter of the Year Winner Vanessa van de Venter, Siemens Plc

Newcomer of the Year Winner Keegan Cooper, Evolve Hospitality

Business Manager of the Year Winner Lindsey Thompson, Search Consultancy

Highly Commended Ben Marsh, Human One

Business Leader of the Year Winner Danny Brooks, VHR

Permanent Consultant of the Year Winner Georgia Walden, Hyper Recruitment Solutions

Back-Office Support Team of the Year Winner PMP Recruitment b Recruitment Team of the Year Winner Randstad Recruitment Campaign of the Year Winner Meridian Business Support

People Development Business Award of the Year Winner Admiral Recruitment Corporate & Social Responsibility Practitioners of the Year Winner Girling Jones Ltd Highly Commended VGC Group Best Company to Work for (up to 20 employees) Winner Inspired Search & Selection Ltd Best Company to Work for (up to 50 employees) Winner Hyper Recruitment Solutions Best Company to Work for (up to 150 employees) Winner Carrington West Best Company to Work for (more than 150 employees) Winner Amoria Bond

Thanks to our headline sponsor, each winner will receive their own GC IndexÂŽ Personal Profile Report and an expert consultation session to unleash the future impact they can make.

HEADLINE SPONSOR

Recruitment Matters

8

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

Recruitment Matters January 2020

RM_JAN 2020.indd 8

Membership Department: Membership: 020 7009 2100, Customer Services: 020 7009 2100 Publishers: Redactive Publishing Ltd, Level 5, 78 Chamber Street, London E1 8BL Tel: 020 7880 6200. www.redactive.co.uk Editorial: Editor Pip Brooking Pip.Brooking@rec.uk.com. Production Editor: Vanessa Townsend Production: Production Executive: Rachel Young rachel.young@redactive.co.uk Tel: 020 7880 6209 Printing: Printed by Precision Colour Printing Š 2020 Recruitment Matters. Although every effort is made to ensure accuracy, neither REC, Redactive Publishing Ltd nor the authors can accept liability for errors or omissions. Views expressed in the magazine are not necessarily those of the REC or Redactive Publishing Ltd. No responsibility can be accepted for unsolicited manuscripts or transparencies. No reproduction in whole or part without written permission.

www.rec.uk.com

05/12/2019 10:41