Issue 62 June 2018
RECRUITMENT MATTERS The View and The Intelligence
The big talking point
Legal Update
Become a Future of Jobs ambassador p2-3
Secretary of State visits REC p4
Job ad language
Events and training p6
TREC
p8
‘CLARITY OF HIS ASPIRATIONS’
KEY IN CARBERRY PICK A clear vision and passion for recruitment were key factors in the REC appointing Neil Carberry its new chief executive. Carberry will succeed Kevin Green at the top of the REC on 25 June after more than 14 years at the Confederation of British Industry (CBI), where he is a managing director. He was instrumental in leading the CBI’s work on the labour market, skills, energy and infrastructure. REC chairman Chris Moore says Carberry’s aspirations for the REC and the recruitment industry were impressive. “Neil impressed the selection panel with his wealth of relevant
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experience against these criteria, the clarity of his aspirations for the REC, and his natural alignment with our ambitions for the future,” he says.
“It is important to us that our new CEO has a broad awareness of the regulations impacting our industry, a deep understanding of what success looks like in a membership organisation, a genuine passion for our sector, and an appetite for delivering operational excellence.” Carberry began his career in recruitment, working for financial services firms for a small search firm before doing a post-graduate degree in Human Resources at the LSE and joining the CBI in 2004. He is a member of the council of the conciliation service ACAS
and of the Low Pay Commission, which makes recommendations about the level of the National Minimum Wage. He is also the chair of a small academy trust. Carberry says he is excited to join the REC at such a crucial time for the recruitment industry. “Technological innovation, changing demographics, the need to improve social mobility and Brexit will all have huge effects on our sector and the wider economy in the years to come, and I want members of REC and the IRP to be able to rely on a vigorous and renewed organisation that is always in their corner,” he says.
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Leading the Industry
THE VIEW
We need you, says Tom Hadley. The REC director of policy and professional services, highlights the key areas for recruiters to watch out for
In its fifth year running, REC ts head of HR & Projects Steve Othen talks about how TREC is bringing recruitment and HR industries together Why is TREC so important? Each year the event is at full capacity with fascinating keynote speakers, panel sessions and roundtable discussions that inspire delegates to make a positive change within their business. We are so pleased that year-on-year, this event brings members of the REC and Good Recruitment Campaign (GRC) signatories all under one roof to discuss recruitment and ensure that their recruitment process is effective and inclusive. What can we expect from this year’s conference? We have already seen hundreds of delegates sign-up for this year’s conference. It could quite possibly be the biggest one yet. We also have an incredible line-up of speakers ranging from the Secretary of State for Work and Pensions, to the vice president, Global Talent Acquisition at IBM – and plenty more. We’re going to be talking about diversity and inclusion, creating a better candidate experience, recruitment technology and how we can design the talent acquisition function of tomorrow – plus much more. Why should people attend? It is such a crucial time for the recruitment industry. The landscape is changing and
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BECOME A FUTURE OF JOBS AMBASSADOR! recruitment will get harder; the solution is to get better at it. No one wants to see the UK fall behind the rest of the world, and this conference provides a solid platform to form a strong collective message by business discussing ways of how we can shape the future of jobs and what that would look like for our industry. What can organisations take away from the conference? The best thing is that you can choose the topics and roundtables that are of interest to you, to make sure you get the most out of the day. The whole day provides real and practical takeaways that are engaging – meaning you’ll get to have your say and have your questions answered, and the fact that we have a mix of established speakers and people that you can speak to first hand. Over the years, TREC has had a real impact on industry. This conference is the first to showcase the great work that is going on in the industry but at the same time it provides a great place to network by bringing the membership of REC and GRC together under one roof. ● To find out more about TREC 2018, visit https://www. rec.uk.com/training-andevents/events/trec-2018
Speaking at a recent roundtable at REC HQ, the Secretary of State for Work & Pensions Esther McVey underlined her commitment to ensuring that “the UK labour market remains the envy of the world, not just by understanding the future of jobs, but creating real results for individuals who want to develop their skills to capitalise on opportunities”. This will require a renewed focus on preparing individuals for the new world of work, which is where we come in. Many recruiters are also working with schools, universities and Local Enterprise Partnerships (LEPs); our aim now is to use some of the intelligence gathered through the Future of Jobs Commission’s work to inform these ongoing discussions and to drive further engagement from REC members. Recent feedback from organisations like the Careers & Enterprise Company, the Education & Employers Taskforce and our chosen charity The Opera Global Youth Foundation has reinforced our belief that recruitment professionals have an increasingly important role to play in helping individuals navigate the fast changing labour market. Specific areas where REC members can make a difference include facilitating work experience placements, providing advice and coaching, and taking a lead on inclusion and diversity by working with local charities. We will also be using the ongoing insight from the Good Recruitment Campaign (including the forthcoming TREC conference) to spread the word on how hiring strategies are evolving and what this means for future generations of workers. Everyone should get the chance to succeed through work, which is why we need to build a better bridge between education and the world of work. The ‘Future of Jobs Ambassadors’ network will bring together REC and IRP members who want to help make a difference by providing heads-up to the next generation. Let’s do this! If you would like to become a Future of Jobs Ambassador, please contact neal.suchak@rec.uk.com.
You can follow Tom on Twitter @hadleyscomment nt
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73%
THE INTELLIGENCE D&I STRATEGIES
Thalia Ioannidou, REC senior researcher One of many topics being discussed at this year’s Talent Recruitment and Employment Conference is diversity and inclusion strategies in the recruitment industry. With compulsory gender pay reporting results being published for the first time this year, gender diversity in recruitment is a particularly timely topic for discussion. One of the key findings highlighted in a BBC analysis of the results was the low proportion of women in top earning roles, with only one in three firms having a majority of women among their top earners. Executive search firms play a crucial role in recruiting high-level candidates to toplevel roles in a wide range of
2017 YIELDS STRONG REVENUE PERFORMANCE FOR THE MEDIAN RECRUITER The latest data from Recruitment Industry Benchmarking (RIBIndex), measuring participating companies’ performance, shows that, following a challenging year across 2016, notably for perm and temp billings, all business lines showed year-on-year improvements for the median RIB recruiter in 2017.
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industries. In 2014, the REC published its ‘Room at the top’ report, which examined the role of executive search firms in ensuring women leaders have access to vacancies at the highest level. We interviewed executive search firms and senior executives of firms outside the recruitment industry to highlight areas of good practice that could be emulated more widely. The report focused on the three key elements in trying to promote gender diversity at the highest level: the executive search firm involved, the hirer and the women candidates for the roles. The report cites the Davies Review’s observation that 73% of FTSE 100 firms use executive search firms, highlighting the crucial role played by these firms in appointing women to senior positions in top firms. Headhunters interviewed for the report highlighted the role they could play by
THE REPORT CITES THE DAVIES REVIEW’S OBSERVATION THAT 73% OF FTSE 100 FIRMS USE EXECUTIVE SEARCH FIRMS
working with clients to avoid unconscious bias and ensuring a diverse shortlist for senior roles. As of November 2017, 39 executive search firms (which represent the majority of work supporting board appointments in the UK) had signed up to the voluntary code of conduct for executive search firms to promote diversity at the highest level. Furthermore, the Women on Boards Davies Review Five Year Summary (published in 2015) highlighted the efforts of executive search firms as “a major driver of progress” in doubling the number of women on FTSE 100 boards from 12.5% in February 2011 to 26.1% in October 2015. The Department for Business Energy and Industrial
Average monthly YoY revenue performance across 2016 & 2017, for the median RIB recruiter 14.7%
15%
10%
9.0%
4.6%
5%
3.2%
0 -1.4%
-5%
■ 2016 ■ 2018
-5.2%
-10% Perm fees
The most robust performance in 2017 came from contract recruitment, revenues from which were almost 15% higher than in
Contract billings
Temp billings
2016 (when revenues were also higher than the previous year). Whilst perm fees and temp billings were also up year-on-year, this was
ONE OF THE KEY FINDINGS HIGHLIGHTED IN A BBC ANALYSIS OF THE RESULTS WAS THE LOW PROPORTION OF WOMEN IN TOP EARNING ROLES, WITH ONLY 1 IN 3 FIRMS HAVING A MAJORITY OF WOMEN AMONG THEIR TOP EARNERS.
Strategy announced on International Women’s Day in March 2018 that FTSE 100 companies are now on track to have a third of board positions filled by women by 2020. However, this year’s gender pay reporting data shows there is still more to be done in ensuring diversity at every level. The REC will be publishing a new piece of research exploring diversity in recruitment and employment this year to continue promoting equality in our industry and in the wider working world. following a year in which revenues were lower, for the median RIB recruiter, than the prior year (2015). Early indications for 2018 (January & February) across all three business lines are also encouraging. 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
FUTURE OF JOBS
Secretary of State for Work and Pensions, Rt Hon Esther McVey
SECRETARY OF STATE DISCUSSES FUTURE OF JOBS AT REC HQ The REC welcomed the Secretary of State for Work and Pensions, Rt Hon Esther McVey MP, to meet with recruitment industry leaders and to re-sign the partnership agreement between the REC and the Department for Work and Pensions (DWP) 4 RECRUITMENT MATTERS JUNE 2018
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REC director of policy Tom Hadley and Secretary of State Esther McVey
REC chairman Chris Moore and Esther McVey with the signed agreement
Established in 2012, the agreement sets out practical ways to share knowledge between the public and private sector, boost inclusion and opportunities for all, and lead the debate on the future of jobs and good work. The roundtable discussion covered specific hot topics such as boosting gender balance in senior roles and
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key sectors, helping people with disabilities into work, providing support and mentoring for older workers, and promoting opportunities in high demand sectors. Industry leaders shared examples of innovative recruitment practices with the Secretary of State and underlined the increasingly pivotal role that recruitment
professionals are playing in helping individuals access work and ensuring employers can access the staff they need in an ever-tightening labour market. So, what were some of the practical examples that REC members could showcase? Here’s six of the best: • Using new technology and workplace adjustments
to enable individuals with hearing impairments to work in call centres; • Launching specific networks to provide additional support to individuals to reach wider talent pools and boost diversity in senior positions; • Challenging preconceptions and adopting a proactive approach to attracting more women into male-dominated sectors such as construction and rail • Working with schools and Local Enterprise Partnerships (LEPs) to raise awareness of career opportunities amongst future generations of workers; • Working with clients to update job descriptions and radically review current recruitment procedures and criteria; • Taking a leadership role in their sector (one example was hospitality) to actively attract and retain good people by providing additional support, including a dedicated employee assistance programme for agency chefs. Reviewing the roundtable discussions with the Secretary of State and the updated partnership agreement, REC director of policy Tom Hadley said: “There has never been a more important time for public and private sector employment experts to come together in pre-empting how the changing world of work will impact on businesses and individuals. This was a great platform for sharing practical examples of how recruiters are innovating and for showcasing what our industry is all about.”
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Legal update
DISCRIMINATION By Bunmi Adefuye, solicitor and commercial adviser at the REC
AVOID DISCRIMINATORY LANGUAGE IN JOB ADVERTS Advertising a role is expected to be straightforward, however if certain words in the advertisement are reasonably perceived as an intention to discriminate, a candidate can point to the advert as evidence in a discrimination claim. The placing of a discriminatory advertisement is not specifically unlawful under the Equality Act 2010, however a recruiter and employer could be liable for discrimination if the content of the advert excludes individuals with a protected characteristic. As a reminder, under the Equality Act 2010, recruiters should not discriminate: • In arrangements they make for selecting who to provide services to or who to offer to provide services • In the terms on which they provide or offer to provide services • By terminating the provision of services to a person or
subjecting them to any detriment • By not providing their services or not offering to provide their services A candidate could argue that he/she was deterred from applying for a job or from using the recruiter’s services because of the requirements in the advert where terminology such as mature, British, bubbly or barmaid were used. Discriminatory requirements should be completely avoided unless it can be demonstrated that there is a requirement for the job that is proportionate to achieve a legitimate aim. An example is, Part 7 of the Immigration Act 2006, which was amended back in November, so public authority employers have a duty to ensure that their workers in ‘customer facing roles’ can speak English, or Welsh in Wales, fluently. The Government’s intention is to
ensure that public services are delivered safely and to a high standard. In addition, an employer can require a job applicant to have a particular protected characteristic but the employer would need to be able to show that having that protected characteristic is a justifiable ‘occupational requirement’. For instance, an employer could justify requesting children actors only to play ‘Oliver Twist’ for the sake of authenticity for the role, which can be objectively justified. Although such requirements will be assessed on a case by case basis. Due to the number of complaints received, the Equality and Human Rights Commission published updated guidance in March 2016 for employers and advertisers on how to avoid discrimination under the Equality Act 2010. The guide contains examples of situations where
adverts can be discriminatory. It also includes suggestions on where to advertise, how to use job descriptions and photographs, and most importantly it reminds recruiters that liability under the Equality Act 2010 extends to the employer and recruiter. If discriminatory instructions are received, the recruiter should ask the employer for a full written explanation as to why they require such a criteria and whether it is a fundamental part of the role. The employer should confirm that their decision does not amount to discrimination. The recruiter should examine the response and decide whether it is a reasonable defence in the event of a discrimination claim. When a recruiter drafts an advertisement, it should not contain discriminatory language; the advert should be accessible and simply reflect the requirements of the role.
EMI SHARE OPTION SCHEMES ON HOLD Enterprise Management Incentive (EMI) share option schemes are a popular and tax effective way for recruitment businesses to incentivise their staff and are often implemented by owners with medium-term exit strategies. Due to their generous income tax, National Insurance, capital gains tax and corporate tax advantages, EU state aid approval is required. However, without any prior warning, EMI state aid
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approval expired on 5 April 2018. While the government is negotiating with the EU to renew the approval, any EMI options granted on or after 6 April 2018, but before state aid approval is obtained, will not have the usual tax advantages. Options granted before 6 April 2018 are unaffected and will maintain their tax advantages when exercised even if state aid approval has not been secured by then.
While it is expected the renewed state aid approval will be retrospective to 6 April 2018, it is recommended that no further options are granted before that happens. Whether state aid approval will still be required postBrexit is a different matter… For more information contact Jamie Cassell or Rob Woodward, Saffery Champness, T: +44 020 7841 4000 www.saffery.com
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Inspiration
BEHIND THE SCENES AT THE INSTITUTE OF RECRUITMENT PROFESSIONALS
The View
Lucy Payne is a consultant at The Work People
Kieran Wilson is a senior consultant ant at Redline Group
TOP STUDENT
DAY IN THE LIFE
Congratulations on being the top Cert RP student. How does it feel? I studied really hard for the exam, but I didn’t feel that confident about it. I thought I might have messed it up! So it was a massive shock when the REC told me I was the top student.
My typical day I wouldn’t use the word typical as things can change quickly on the contracts desk. I always ensure I have a plan in place from the night before as to what I am looking to achieve the following day. However, things do drop in, which can take priority and which means things can move very quickly.
How did you find the Cert RP? I was completely new to the industry, so it was really interesting to learn everything from scratch. I think it’s really good for people who work in recruitment who want a qualification to back them up. There’s so much in there about the industry that you might not know, even if you’ve been working in it for a while. What was the most useful aspect? Some of the sales techniques it teaches and a lot of the legal units are really useful in my day to day work. It makes sure everything we do in the office is up to standard. My colleagues come to me all the time with questions about recruitment now – I’ve become the source of knowledge! You started working as a recruitment apprentice – how did you find that? I applied for the recruitment apprenticeship with The Work People and never looked back. I wanted to help people find jobs that they love. Recruitment is challenging but every day is different and it’s so rewarding when people come back to you and say thank you. I feel so much happier – it’s a really good feeling. I finally have a job that I’m good at and that I enjoy. Would you recommend a recruitment apprenticeship to other people? I can see my future and it’s because of the apprenticeship – it’s the best thing I’ve ever done. The Cert RP is a lot of time and mental effort, but it’s definitely worth it. Recruitment is a very rewarding career.
The best part of my job... ...is changing someone’s life. A person’s career is a huge part of their life. It is where they spend most of their time and it is what provides for themselves and their families. I love that I can help people love their jobs. Whether it is helping someone take the first steps in a new contract role, or enhancing their existing career, it has a massive impact on their life – and the best part is, I helped to make it happen! My most memorable work moment Was my first placement. Every placement is important and it makes you feel good, but it is the first placement I will always remember. From initially submitting the candidate to feeling incredibly nervous when delivering the offer – hoping I had done enough throughout the process to close the offer. And it was a success! I love recruitment because... As recruitment is a sale-orientated role that requires great communication, focus, determination and passion to succeed, you must work hard. The ‘work hard, play hard’ mantra is never truer than when describing what we do. With numerous incentives, rewards, events, along with a strong bond with my team and the organisation, I undoubtedly play just as hard as I work. Recruitment can also be very lucrative, and I love to make money! As frank as it sounds, recruitment is a money-oriented business with targets and commission to reward those who are successful.
To keep up to date with everything the Institute of Recruitment Professionals is doing, please visit www.rec-irp.uk.com
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What’s coming up?
TREC AGENDA 2018 DATE: Wednesday, 4 July 2018 VENUE: Grand Connaught Rooms, 61-65 Great Queen Street, London WC2B 5DA 09:00 Registration, refreshments and networking 09:30 Welcome Chris Moore, Chairman of REC and President of Group Operations at Adecco 09:45 Introduction Conference Chair, Kevin Green, Chair, The Good Recruitment Campaign 10:00 Panel session: The Future of Jobs Chair: Rt Hon Esther McVey MP, Secretary of State for Work and Pensions Panel: Catalina Schveninger, Global Head of Resourcing and Employer Brand at Vodafone Neil Morrison, HR Director at Severn Trent Rob McCargow, AI Programme Leader at PwC 10:45 Keynote: Jo Youle, CEO at Missing People ‘Dare yourself’ This inspirational talk from TEDx speaker Jo Youle, will cover topics such as taking opportunities and opening doors, not waiting for perfect
moments, putting in the graft, following dreams and ambitions, and changing the world for the better. 11:15 Refreshments and networking 11:45 Roundtable sessions: These discussions, whilst having a facilitator to help manage the discussion, are an opportunity for delegates to share their questions, learning and experiences around a common topic. Roundtable topics and facilitators 1. Candidate experience Ben Gledhill, Head of Resourcing at Yodel 2. Employer brand Sarah Gallo, Head of Resourcing, Employer Brand and Attraction at Tesco 3. Diversity and inclusion Jenny Roper, Editor, HR Magazine Kesh Ladwa, Head of Resourcing for Group Functions, Nationwide Building Society 4. Talent analytics Alan Agnew, Global Head of Talent Sourcing,
RECRUITMENT MATTERS The official magazine of The Recruitment & Employment Confederation Dorset House, 1st Floor, 27-45 Stamford Street, London SE1 9NT
TREC, now in its fifth year, is a one-day conference for senior decision-makers to engage in high-level interactive sessions about the future of resourcing, talent acquisition and retention strategies. Speakers this year include Jo Youle, CEO at Missing People, on daring yourself to change the world; ‘Google Dave’ Hazlehurst discussing the future of employer brand; and Lucy Adams, author of HR Disrupted, on how HR professionals can add more value to their businesses. We are also delighted to announce that Rt Hon Esther McVey MP, Secretary of State for Work and Pensions, will be hosting our Future of Jobs panel – having chaired our Future of Jobs Commission. ● Visit www.rec.uk.com/trec2018 to register your interest Campus and Talent Analytics at Philips Ed Houghton, Senior Research Advisor: Human Capital and Governance at CIPD 5. On-boarding Nigel Barker, Head of Talent Acquisition, Europe at Mondelēz International Simon Fawkes-Underwood, Head of Talent Acquisition at E.ON 6. Legislation; TBC 7. HR tech Bill Boorman, Founder at @BillBoorman Matt Alder, Talent Acquisition and Innovation Consultant at Metashift 8. Building internal talent pipelines Daniel Harris, Talent Acquisition Lead at AECOM Selina Begum, Head of Resourcing at Springer Nature
HR Disrupt talent acquisition Lucy Adams, author of HR Distrupted, will talk about why she thinks it’s time for something different. Lucy will give her views on how HR professionals can add more value to their business, with a particular focus on resourcing and talent acquisition. 14:45 Panel session: What does the resourcing function of the future look like? Chair: TBC Panel: Debbie Robinson, Director of Talent Acquisition – Global Talent Pipelines at PepsiCo Kevin Blair, Vice President, Global Talent Acquisition at IBM Jennifer Candee, Global Head of Talent Acquisition and Employer Brand at Mondelēz International
13:45 Feedback from roundtable sessions
15:30 Keynote: Dave Hazlehurst, Partner at PH.Creative The future of employer branding
14:15 Keynote: Lucy Adams, CEO at Disruptive
16:00 Conference summary, close and networking drinks
13:00 Lunch and networking
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 JUNE 2018
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