TH E VI E W AN D TH E I N TE LLI G E N CE
Prepare now for challenges ahead p3 B I G TALKI N G POI N T
Working with clients to meet future needs p4 LEGAL U PDATE
Recruitment Issue 98 Ma ers July-August 2022
Ukraine right to work schemes p6 Q& A
Time for a new partnership with clients p7
Rail strikes
Supplying agency workers to cover strikes A
s we con nue through the summer, the recruitment industry is contempla ng the possibility of a significant change to the legisla on governing our industry. For 50 years, agencies have been prohibited from supplying temporary staff to cover the work of striking employees or workers who are themselves covering for striking employees. But the UK government plans to repeal regula on 7 of the 2003 Conduct Regula ons to counter the recent wave of strikes. So where does this leave recruiters? At the me of wri ng, the legisla on has not yet been tabled. But if regula on 7 is repealed in its en rety, clients could instruct agencies to supply workers to cover any of their staff who are on strike or taking some other form of official industrial ac on. In short, they could be engaged in strike breaking. Agencies should remember that not all business is good business, and there are other provisions that they will need to consider before contempla ng sending temporary staff into poten ally risky situa ons. Other provisions in the Conduct Regula ons place a duty on agencies to protect their workers and clients from detriment. Certainly, the prospect of agency
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workers having to cross poten ally vola le picket lines is something that agencies would need to take into account before considering supplying staff. The same issues would apply to clients, who have a shared health and safety duty to the staff supplied to work on their sites. At the very least, there should not be a situa on where agency workers are unknowingly sent into a strike situa on. Agencies would also need to ensure that staff are only supplied to do work that they are capable of – in terms of training and having the relevant skills and experience. If nothing else, the P&O Ferries PR disaster has shown that the use of agency workers in some situa ons can damage the reputa on of agencies and the wider industry. In consulta on with members, the REC has taken a strong line to protect the reputa on of the en re recruitment industry. REC members who receive queries from clients and candidates about supplying agency staff during strikes can contact our legal helpline to discuss the current legal posi on.
Making great work happen
www.rec.uk.com 28/06/2022 16:14
Leading the industry
the view... Prepare now for more disrup on to come, warns
Neil Carberry,
REC Chief Execu ve
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e’re more than halfway through 2022 and we’ve already seen significant disrup on across the world – from skills and labour shortages to soaring costs driven by supply chain di cul es. All this current disrup on can distract us from the longer-term issues – such as tech advances that change our world, or the progress on inclusion that we need to make. That’s why our REC 2022 conference was a fantas c chance to bring together business leaders and advisers from across the economy to discuss how we can face these future challenges together. We already know the outlook for the autumn is looking di cult. Infl a on hit 9% in April and is forecast to go even higher. Energy prices are soaring and, as I write, there are the first indica ons that growth is slipping. One of the ironies of the current situa on is that the ght labour market may help to mi gate some consequences of the slowdown. But it’s me to start thinking about naviga ng a slower market. I’m looking forward to welcoming Greg Savage to the UK at the end of August for a session focused on thriving through the slowdown and into 2023. This is just one of the ways the REC is planning to help members this year. Content from REC 2022 is already available to members to inform their thoughts about what happens next. Keep coming to us with your issues – we aim to be the industry’s problem solvers! For me, there are three things to focus on now: know where your business creates real value and protect the teams that do it; deepen client rela ons to ensure a steady fl ow of repeat, exclusive work; and specialise in the fields where your clients are growing, as they change shape to meet new opportuni es. My view is that, so far, we have seen only half the economic change that the pandemic crisis will wreak. The next stage will be thirsty for the right talent, delivered in the right way, by trusted partners who understand client and candidate needs. The opportunity is there for recruiters to thrive into 2023. If you want to keep up to speed with all things recruitment then follow me on Twi er @RECNeil
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C A MPA I GN S
Umbrella company regulation: missing but not forgotten Shazia Ejaz, Director of Campaigns at the REC
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he Queen’s Speech in May was notable for the absence of two things – the Queen herself, and the long-an cipated employment bill. This would have promised several changes to UK employment legisla on. One of these was going to be the introduc on of new regula ons to police the ac vity of umbrella companies. When we realised there would be no employment bill in this Parliament, our ini al reac on was frustra on. This bill was first promised in 2019 and, without it, unscrupulous umbrella companies can undercut legi mate businesses and exploit workers. The onus on protec ng workers is le to recruiters, despite the umbrella being the legal employer since they provide the payroll service. However, we should not despair. While the employment bill would have introduced much-needed regula on, other legisla on could be introduced outside the scope of the Queen’s Speech. Various government departments have implied that regula on is not yet off the table. In a recent conversa on with REC members, Margaret Beels, Director for Labour Market Enforcement (DLME), made it clear that regula on of the umbrella market remains very much on the agenda for her body. Similarly, o cials from the Department for Business, Energy and Industrial Strategy (BEIS) have expressed a con nued desire for greater regula on of umbrella companies. For our part, the REC will con nue to work with the DLME and BEIS in the coming months to try to bring regula on forward. We have also been working on our own review of compliance prac ces in the umbrella market. Our Project Rainfall will promote best prac ce and help recruiters to perform their due diligence when engaging with an umbrella company. Umbrella company regula on may have been missing from the Queen’s Speech, but it certainly hasn’t been forgo en – and we hope the con nued desire for regula on will lead to progress soon.
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Leading the industry
the intelligence... The net zero transiঞon is under way – don’t get le[ behind By Atanas Nikolaev, Research Manager, REC In 2019, the UK government and the devolved administra ons commi ed to a Net Zero target recommended by the UK’s independent Climate Change Commi ee. This means that by 2050, the carbon emi ed into the atmosphere by the UK will be equalled by the carbon being removed from it. Reaching this ambi ous but necessary target is hugely important and will require big changes across the economy. In terms of scale, these changes are unprecedented. However, we have already witnessed successful large-scale transi ons in the UK – for example, when we switched to using natural gas in the 1970s, and when we moved to digital broadcas ng in the 2000s. In March 2022, the Interna onal Energy Agency reported that global carbon emissions from energy and industrial processes reached a new record level in 2021, rising to 36.3 billion tonnes. This reinforces why it is essen al to act quickly, rather than wai ng and crea ng an even bigger problem that we have to deal with in the future. Progress can come in different forms, from na onal strategic shi s to eco-friendly changes by individuals. And, of course, businesses can do a lot to make a difference. More than 2,000 companies have already commi ed to the United Na ons’ Race to Zero campaign and a large propor on of those are Bri sh businesses in sectors including transport, technology and finance. But while that might appear to put the UK in a good posi on, a third of FTSE 100 companies are emi ng carbon
2,000 More than 2,000 companies have already commi ed to the United Na ons’ Race to Zero campaign.
dioxide at a rate consistent with global temperature increases of 2.7C or more by 2050, according to Arabesque analysis. Meanwhile, others are se ng the bar high. Ne lix’s Net Zero + Nature plan aims to reduce the streaming giant’s net carbon emissions to zero by the end of 2022. The company has already changed the way it produces films and TV shows, using local film crews, electric vehicles and LED ligh ng and reducing diesel generators on its sets. Beyond its own opera ons, it is also suppor ng conserva on projects that help to reduce carbon in the atmosphere. Nespresso is another familiar name making strides in this area. The coffee brand has made important changes to its manufacturing process to bring it closer to its net zero target. The company’s business opera ons have been carbon neutral since 2017 and its next step aims to remove carbon from its supply chain and product lifecycle. Nespresso is also inves ng in conserva on projects
2.7C
A third of FTSE 100 companies are emiমng carbon dioxide at a rate consistent with global temperature increases of 2.7C or more by 2050. in the areas where it sources its coffee to help local farmers adapt to adverse weather events and strip carbon from the atmosphere around the farms. Obviously, these are global companies, but there are things that smaller businesses can learn from them. As long as you have a clear goal, becoming more sustainable can be done gradually via small and effec ve changes that accumulate over me. And there are many benefits for businesses that become more eco-friendly, including reduced energy costs and a smaller carbon footprint. It can also be used as an a rac on tool, as candidates increasingly look at companies’ environmental policies when they apply for jobs.
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Facing future challenges
big talking point
Joint effort
The REC conference brought together industry experts and senior HR professionals to discuss the theme of ‘Facing future challenges together’ and idenঞfy ways in which they can work together to solve the biggest quesঞons around talent procurement, retenঞon and development.
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nyone hoping for a postpandemic period of calm has been disillusioned. Soaring energy prices and chronic staff shortages are adding to big ques on marks over the workforce and skills that businesses will need in future. Where we work, how we work and who will do what tasks are all in fl ux. Some issues need urgent ac on – chaos for air travellers over the Jubilee weekend and recent rail strikes demonstrate the risks. Organisa ons must make recruitment decisions with the expecta on of uncertainty and economic pressure in the coming months and years. To do this, they need all the help the recruitment industry can provide. This is where recruiters as consultants make a real difference, offering insights from mul ple organisa ons and sharing ideas on longer-term workforce strategies. They can also draw on long-term trends and analysis that may not be available to their clients. However, recruiters must also keep abreast of changing business needs and shi s in the labour market. They need to use their networks to understand current issues and help to predict future needs – which means nurturing longterm rela onships and ini a ng complex conversa ons. It is no longer enough to supply a candidate and take the fee without considering the future of that person and that role. It’s also me for some self-refl ec on. For example, many recruiters should 4
examine their diversity and inclusion record. Does their senior management team refl ect the diversity of their junior staff? Do their employees have the skills to play a broader, more consulta ve and collabora ve role? Do they understand wider economic and social pressures? Or are they incen vised to fill a gap and move on? These ques ons were addressed by speakers at the REC’s annual conference, which covered themes including diversity and inclusion, sustainability, technology and the future of skills, business growth and people development. Delegates heard from employers who explained the issues they face and outlined the support they want. One industry seeing fundamental changes is retail. Helen Dickinson, CEO at the Bri sh Retail Consor um, says that digi sa on is a par cular pinch point. “We need to think about how jobs are evolving and how we upskill everyone from computer scien sts to those working in customer-facing roles,” she says. “We also have lots to do around inclusivity and diversity. The retail workforce is wonderfully diverse, but much of this is lost at senior management level and we need to improve this.” On the front-line, retailers tend to recruit for a tude more than specific skills. But the industry needs to look at opportuni es and fl exibility, share its experiences and provide role models to
encourage a more diverse group of employees to progress in future, she warns. “Good employers will always a ract people, but we need to demonstrate the opportuni es in a wide variety of roles using different skills,” she says. Neil Morrison, HR Director at Severn Trent, believes that some current staff shortages are a temporary consequence of the pandemic. However, he sees this as an opportunity to create jobs for people who have struggled to find employment because of barriers such as disabili es, geographical loca on, lack of experience or problems re-entering the workforce. “There are three things we’re doing to connect such people to jobs,” he explains. “We’ve got to inspire people, so they believe there are opportuni es. We’ve got to use appren ceships and retrain people for future careers, and we’ve got to equip them to be successful in the workforce.” This puts more onus on organisa ons and recruiters to connect with the widest variety of people, he adds. “We rely too much on pu ng job opportuni es on LinkedIn. We need to approach schools and colleges and third-sector organisa ons.” He also wants more input from recruiters. “Generally, they do what we ask them to do. A more produc ve rela onship would be one that asks what skills we need to build and suggests
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Change statistics Skills
37% of workers are currently over-skilled and 13% are under-skilled. By 2030, 7 million addiঞonal workers could be under-skilled for their job requirements, along with 900,000 addiঞonal workers over-skilled. The most acute under-skilling will be in basic digital skills, core management skills, STEM workplace skills and teaching and training skills. (Department for Educaࢼon)
Ageing workforce 62.5% – the percentage of the UK working age populaঞon in 2018-19 61.2% – the predicted percentage of UK working populaঞon by 2050-51
Net-zero commitments where we might find these. I would respect the recruiter who told me about our future skills gaps. I need insights into the labour market to plan the workforce. Some do this, but not enough.” He cites trends including increased social responsibility from employers, the need to understand micro as well as macro employment markets, and a focus on adaptability and transferable skills to improve staff reten on. “Digital literacy is more important than knowing par cular so ware packages,” he adds. Adeife Onwuzulike, Global EDI Director at Euromonitor Interna onal, argues that crucial skills gaps are already here as employers seek different skills from those they wanted before the pandemic. Others are realising that exis ng staff can do more – as they demonstrated during COVID emergencies. “We need to ask, am I using exis ng staff and skills in the best way and am I recrui ng new people I can train?” she says. And a changing workforce requires leaders who can manage performance, absence, diversity and inclusion and people development in an evolving workplace. Organisa ons should ques on whether managers have the progressive a tudes that future leaders will need. “It’s not enough to recruit someone from a different community. Organisa ons need to understand the lived experiences of people with different www.rec.uk.com
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10% of UK jobs may see higher demand as a result of the transiঞon to net zero, but another 10% currently involve skills that will be needed less, requiring reskilling, upskilling or new applicaঞons for exisঞng skills. Most jobs will require some modificaঞon of exisঞng tasks as part of ‘greening’.
The circular economy
could increase overall employment by 0.5% by 2030. Higher growth could occur in recycling and repair sectors. cultures and ensure these generate real change,” Onwuzulike says. “Look beyond what people can do now and focus on what they can bring to the organisa on in the future and whether they can make the culture more diverse – in terms of thought, not just appearance.” One way to bypass bias is to ask a recruiter for their “wild card” op on, she suggests. “I say: ‘Surprise me. Show me someone who is in my blind spot.’ It’s hard to ask for someone who you don’t know exists.” She adds that organisa ons need top-level conversa ons about where they want to be, and how they want to look and sound, in future. Recruiters can help them to examine job descrip ons and ar culate what they want. “We must be honest about what we lack and ask recruiters for imagina ve op ons and alterna ve ideas,” she says. “But recruiters also have work to do – they need to ques on how they engage with different markets and whether they are themselves recrui ng people with different lived experiences,” she adds. However, Jayne Haines, Senior HR
Professional, ACAS Council Member and Chair of Women in Sport, believes we need to rethink the balance of the employee/employer rela onship – and this starts with recruitment. “Where possible we should encourage employees to ‘self-advocate’, to be clear about what they offer and what they need from the ‘transac on’ that is employment,” she says. “Companies that want the best people will need to engage beyond the standard contract and policies, and create a more adap ve and inclusive approach,” she adds. “It’s not about complex new policies or benefits, it’s about a conversa on between applicant and recruiter, discussing what mo vates them, why they work, how work fits into their life and how the organisa on can support them so they thrive in all aspects of their life.” She believes the recruitment industry is perfectly posi oned to help create this “new normal”, by working with organisa ons and candidates to create an open, equitable contrac ng conversa on from the start of the rela onship. July-August 2022 Recruitment Ma ers
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Employment law
legal update
Ukraine visa schemes and right to work checks By Ash O’Kee@e, Legal Adviser, REC
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kraine has endured more than 100 days of conflict since Russia’s invasion began. In that me over 65,000 Ukrainian refugees have entered the UK to escape the war. In response, the Home Office has introduced two visa schemes to facilitate Ukrainian na onals and their families coming to live and work here. The Ukraine Family Scheme allows immediate and extended family members of Bri sh na onals and people se led in the UK to come here. Applicants must: • be applying to join or accompany their UKbased family member; • be Ukrainian or the immediate family member of a Ukrainian na onal who is applying to the scheme; and • have been residing in Ukraine on or immediately before 1 January 2022. The Homes for Ukraine Scheme allows Ukrainian na onals who have immediate family members who can be non-Ukrainian na onals to be sponsored by UK residents
Are you prepared for digital transformaঞon in recruitment? Peter Stoll, Account Director, Marsh Commercial
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who have suitable accommoda on, to live and work here. Both schemes allow applicants to stay for up to three years. Once in the UK, the procedure and requirements differ depending on whether the individual has a valid Ukrainian passport. If they do, Border Force stamp the passport with permission to enter, valid for six months with no restric ons on work. This will be displayed as Code 1A or Amended Code 1 endorsement in the passport. The individual must then obtain a Biometric Residence Permit (BRP) within the six-month validity period. A stamp or a visa gran ng permission to stay under the Ukrainian Schemes is a me-limited right to work. Employers will therefore need to carry out a follow-up check of those with me-limited permission to work in the UK. This should be done before their previous permission comes to an end. Ukrainian na onals without a valid passport may be provided with an entry clearance vigne e a ached to a ‘Form for Affixing the Visa’ (FAV). If a FAV is issued,
One of the biggest recent changes in the recruitment industry is digital transforma on. The experiences of working remotely during COVID-19 lockdowns accelerated this trend. There are now two streams to the digital transforma on of the recruitment industry. First, remote working seems here to stay, and firms are inves ng in digital collabora on and recruitment tools to ensure remote workers can access the systems and support they need, wherever they are. The second stream is the long-term transforma on of recruitment, which involves using automa on and AI technologies to streamline manual processes and drive business efficiencies. These sophis cated technologies affect everything from candidate-tracking to screening and assessment, and have the poten al to change the industry fundamentally.
a BRP is available for collec on a er arrival, and this can be used to access the Home Office online checking service. Individuals can use their FAV to prove their right to work in conjunc on with confirma on from the Home Office Employer Checking Service (ECS) in the form of a Posi ve Verifica on No ce (PVN). Where employers contact the ECS but the individual has a BRP available, employers will be directed to advise the individual to collect their BRP and prove their right to work using the Home Office online checking service. In this scenario, ECS will not issue a PVN to provide a statutory excuse and employers should use the online checking service. More informa on on the schemes can be found in Annex F of the government’s Employer’s Guide to Right to Work Checks.
However, technology investments create risk, so should be paired with updated processes and systems – from con nuity planning to ensure the business can operate if cri cal technology fails, to stronger security against cyber-a acks. The es mated annual cost of cyber crime to the UK economy is £27 billion – as well as opera onal impacts, disrup on and remedia on costs, firms may face reputa onal damage and fines from the ICO if cyber-criminals are able to access personal data. Firms should invest in cyber protec on to keep data secure. Regular cyber security training for employees is vital, as 95% of cyber breaches result from human error. Cyber insurance can also minimise loss and disrup on. REC members can find out about Marsh Commercial’s exclusive offers here. www.rec.uk.com
28/06/2022 16:53
New opportuniঞes
Jo Major is Founder of Diversity in Recruitment
Tim Cook is Group CEO at
We must do more.
How can the recruitment industry tackle today’s challenges?
The recruitment industry is seeing a huge drive from clients to make organisa ons more representa ve and to look at culture from an inclusivity perspec ve. They realise that they lack representa on and understanding of the lived experiences of those who don’t share the iden es of those in the business.
Cultural change is more than iniঞaঞves.
Recruiters shouldn’t perpetuate the exis ng system or focus on an ‘iden ty shopping list’. Organisa ons first need to understand their culture and the experiences of people in their organisa on. Recruiters should explain why clients lack representa on. www.rec.uk.com
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Q&A
What I know
Seize the opportunity to forge a new kind of partnership with employers
We need the knowledge to advise clients.
We are used to having difficult conversa ons when clients have unrealis c demands. We must extend the same approach to D&I. We must offer advice and consultancy and many recruiters do not yet have the knowledge and experience of D&I to do this.
We are responsible for candidates.
We must ask: “If I put that woman into your senior management team, what experiences will she have?” and “If I put this trans person into your organisa on, what will they face?”. We expect to prepare candidates with informa on about skills and sector before an interview and we need to do this for D&I as well.
nGAGE Talent
We have never had a more powerful ‘right to exist’. Employers face increasing complexity, as the world of talent goes through fundamental change (global talent pools, professional gig working, increased churn, outsourcing, etc). It’s a moment in me and we need to professionalise and become strategic partners to our clients.
solu ons’ rather than just ‘recruitment’. We need to demonstrate that outsourcing makes sense and encourage organisa ons to think about talent differently. It’s not just about headcount, it’s about capacity and becoming more produc ve. This may involve more automa on and a different type of workforce. The ‘new normal’ is not the ‘old normal’, for sure.
How do we get there? It’s the difference
What must change? between a sales
We need to shi the narra ve, from ‘grudge’ purchase to ‘desirable solu on’. Employers should work with us as partners to help them solve their talent challenges. To be a strategic partner, we must deliver – not overpromise. We need to offer ‘talent
organisa on and a professional consultancy. Both sides must be more transparent, honest and realis c. Do your customers love you – would they miss you if you weren’t there? Trust comes from confidence that you are reliable and offer value. It’s a twoway rela onship.
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Training and support
Transforming lives with Maximus At Maximus, we are experts at suppor ng people through challenging mes. We help people to find employment, access support and remain healthy in their workplace or community. We have helped: • 300,000 people back into sustainable employment. • 5,000,000 people move forward with their lives. • 2,000,000 people stay healthy in the workplace. • 1,400,000 people with our expert telephone support services. Our employability services aim to improve the lives of thousands of
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The official magazine of The Recruitment & Employment Confedera on Dorset House, 1st Floor, 27-45 Stamford Street, London SE1 9NT Tel: 020 7009 2100 www.rec.uk.com
Recruitment Ma ers July-August 2022
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people through work-related skills and training support. We deliver a range of employability contracts across the UK on behalf of central, devolved and local governments. The government’s flagship Restart Scheme launched in July 2021 and is the largest employment support programme commissioned to date. It aims to help people affected by the pandemic to get back into work by transferring skills to new or different sectors. To deliver the scheme, we work in South and West Yorkshire, Derbyshire, No nghamshire and South and East London with more than 100 community partners, including
chari es, skills providers, local authori es and mental health partners, including REC. Key to success are our collabora ve partnerships with employers and recruitment agencies. We have a large pool of pre-ve ed candidates that meet job requirements and each candidate is carefully matched to every vacancy. Our Account Managed recruitment service saves employers me and money on recruitment si ing, screening and ve ng candidates. To find out more about a partnership with Maximus, contact alice.mcdermo @ rec.uk.com and chantell.jones@rec.uk.com
Membership Department: Membership: 020 7009 2100, Customer Services: 020 7009 2100 Publishers: Redac ve Publishing Ltd, Level 5, 78 Chamber Street, London E1 8BL Tel: 020 7880 6200. www.redac ve.co.uk Editorial: Editor Ruth Pricke . Produc on Editor: Vanessa Townsend Producঞon: Produc on Execu ve: Rachel Young rachel.young@redac ve.co.uk Tel: 020 7880 6209 Prinঞng: Printed by Precision Colour Prin ng © 2022 Recruitment Ma ers. Although every effort is made to ensure accuracy, neither REC, Redac ve 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 Redac ve Publishing Ltd. No responsibility can be accepted for unsolicited manuscripts or transparencies. No reproduc on in whole or part without wri en permission.
www.rec.uk.com
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