THE VI E W AND THE I NTE LLI GE NCE
Focus on value to beat price rises p3 BI G TALKI NG POI NT
Navigating the cost of living crisis p4 LEGAL U PDATE
Recruitment Issue 97 Matters May-June 2022
Who gets extra bank holidays? p6 Q& A
Using social media to attract candidates p7
Ukraine crisis
Responding to the Ukraine crisis T
he crisis in Ukraine has shocked us all as it has unfolded over the past few months. The Russian government’s actions have created a humanitarian crisis that is very close to home. It has affected the friends, family and colleagues of many of us in the recruitment industry. But through the first weeks of this terrible event, our sector has rallied to provide support wherever possible. Recruiters with operations in the region were quick to provide direct support, offering their time and resources to gather aid and supplies, and providing safe transport for people fleeing Ukraine. Many international businesses made an ethical decision to cease operating in Russia because of the country’s actions. We have also heard from many members who are running support sessions for both Ukrainian and Russian nationals in their internal teams, as well as their temp workforces, in the UK. Many recruitment companies also have links with refugee charities and organisations, including the Tent Partnership and the UN High Commissioner for Refugees, and are committed to helping refugees settle in new countries. The REC is working with the Refugee Employment Network, now in its pilot phase, providing support to those who need it in the UK labour market. Recruiters have also been generous with their financial donations to humanitarian relief and other support efforts. Companies including Manpower and Hays have announced large donations. Others in the sector have set up grassroots fundraising campaigns – for example, Danny Brooks MBE of VHR has raised thousands for the
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British Red Cross Ukraine Crisis Appeal – and at the REC we are also playing our part. We are liaising with the UK government about what further action might be taken, and working with the World Employment Confederation (WEC) on the industry’s international response. We are also supporting members wherever possible. We are proud to represent an industry that has reacted so warmly and generously to this crisis, and will continue to do all we can to help members. Visit www. rec.uk.com/ukraine or get in touch to find out how we can support you and your business at this time.
Making great work happen
www.rec.uk.com 27/04/2022 09:09
Leading the industry
the view... When costs rise, consider all options and compare the value you get on your investments, advises
Neil Carberry,
W
REC Chief Executive
e’re all facing tough economic times. It’s not just about costs for consumers. The cost of running a business is also rising across the board. The terrible situation in Ukraine is only adding to the economic pressure. This all comes at a time when the economy needs a jolt of business investment to expand. From our JobsOutlook survey of employers, it’s clear that the confidence is there to invest in staff, partnerships and capital assets, such as new tech. The latter is especially important for improving companies’ productivity, where British firms historically lag. But current headwinds make it vital to ensure that spend is managed well and you get a good return on investment. Over the years, job boards have been important partners for recruitment agencies, attracting more eyes to vacancies and more potential candidates. But in recent months a huge number of REC members have told me they are seriously reconsidering their partnerships with some boards that are introducing enormous price rises at a time when the numbers of candidate applications are decreasing. Ultimately, it comes down to a simple question – is this investment good value? At the REC, we are focusing on how we can help. Some of this might come through partnerships designed to reduce costs, but it is even more important to ensure your spend is efficient. If credits cost more, when do you use them? A mediastyle buying approach is helping many companies I talk to. It also helps to compare efficacy with the other tools available, from social media to your own sourcing. Expect more from the REC on this during the year. This is one of many key topics – along with client relations and the recruitment workforce – that will feature at our conference on 30 June. Sign up now! In the meantime, we are here to help in any way we can. Don’t be bullied, get in touch if you would like some support, and make sure you know that the money you spend will generate a return for you. If you want to keep up to speed with all things recruitment then follow me on Twitter @RECNeil
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CAMPAIGNS
Why do we go on about workforce planning? Shazia Ejaz, Director of Campaigns at the REC
B
usinesses are feeling the squeeze, but most are working harder than ever to hire skilled staff. Labour and skills shortages will be with us for some time, so long-term workforce planning is even more important. But ‘workforce planning’ means different things to different people – we mean planning so that the economy has the right workers, with the right skills and at the right time. Easier said than done. The pandemic laid bare some of the realities of our labour market and increased levels of economic inactivity. We need to think more about how to break the cycle of skills shortages and sticking-plaster interventions that are often too little too late. We want to see government and business working together in a truly collaborative way. This means a crossdepartmental forum, working in conjunction with industry experts to forecast and plan for the roles and skills needed for the future – technology and automation, digital and ‘green’ are likely to feature heavily. Our education system must prepare the future workforce with the skills and opportunities to succeed. In addition, effective programmes for upskilling and reskilling at every stage of life should be widely available and fully accessible. Reforming the Apprenticeship Levy (as the REC has long called for) would be an excellent start. We also need a flexible immigration system that can respond to labour market needs, filling short-term gaps and boosting our value on the global stage. One of its goals should be to reduce the number of occupations on the Shortage Occupation List. Workforce planning is about getting the right people – recruiters – working with the government to shape policies that affect the future flow of labour and the stability of our jobs market, so we become a high-skill, high-wage economy. It is time for government to recognise people as our most valuable asset and treat workforce planning with the gravity it deserves – in conjunction with recruitment experts.
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Leading the industry
the intelligence... How well are recruitment leaders equipped to benchmark internal employees against the market? By Atanas Nikolaev, Research Manager The REC’s latest JobsOutlook survey found that while firms were uncertain about the UK’s economic prospects, they were more optimistic when it came to hiring and investment decisions, creating strong demand for recruitment businesses. And staff shortages have affected every sector of the economy – including recruitment. Staffing companies are also struggling to recruit and, as in other industries, it can be hard to know what salaries to offer to attract new staff. To address the issue, the REC has partnered with Cendex, one of the largest employer-reported datasets in the UK, to provide salary benchmarking data to recruiters. This initial report, exclusively for REC members, contains data on the remuneration of key recruitment occupations in comparison with other industries. It will help you to understand the market for recruitment skills, so that you are equipped to attract and retain talented recruitment consultants. To supplement this initial report, the REC will support recruitment leaders to understand what other measures they can take, apart from increasing salaries. And, over the coming months, REC members will benefit from a series of practical guides on how to develop and engage their workforce, improve workplace culture and retain their top talent. To put things into context, the past two years have been very challenging for UK businesses. With GDP back to the levels seen in Q4 2019 and unemployment
3.9%
GDP is back to the levels seen in Q4 2019 and unemployment is down to just 3.9%
down to just 3.9%, the economy has bounced back more strongly than anticipated. The rate of the recovery, however, although fast at first, has been slowing down since late 2021 and we are now facing a different threat – a drop in living standards. Inflation is now at a 30-year high and the cost of living crisis will probably be the defining economic feature of this year. The Bank of England is predicting that inflation will fall back to its 2% target at some point in 2024. And while businesses are doing what they can to meet pay expectations, the rise in inflation is seriously limiting their ability to do this.
2%
The Bank of England is predicting that inflation will fall back to its 2% target at some point in 2024.
Some believe that inflation shouldn’t even be our main concern. According to the Resolution Foundation, weak productivity is the factor that most threatens living standards. And if we want to see meaningful economic growth, we need to make sure that productivity and wage growth perform better than expected in years to come.
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The cost of living
big talking point
Cost crunch Recruitment firms and their clients and candidates are all being squeezed by rising inflation and energy costs. What can they do to ease the pain?
J
ust when we thought it was safe to go out again, the price of a cup of coffee – and potentially the journey to get it – soars. In March, the Office for National Statistics reported that inflation had hit 6.2%, the highest rate for 30 years. Some of this was driven by a dramatic rise in energy costs, with predictable knock-on effects on manufacturing costs and transport, and some by shortages of raw materials and supply chain problems. This is not a blip; the Bank of England warned that the consumer price index will rise above 8% by June and will probably hit double digits this year. The transport, furniture and household goods sectors have led the way, but food and clothing prices are also rising sharply. The Bank may also have to raise interest rates, increasing the cost of borrowing for companies and individuals. It’s not a pretty picture for employers, still reeling from economic shocks caused by the pandemic. Some are also directly affected by Russia’s invasion of Ukraine and ensuing sanctions. Many are reassessing their need for large towncentre offices. Meanwhile, their current employees will be asking for significant pay rises – especially if they see new hires being offered generous incentives to join the workforce. Many of the long-term consequences are yet to be seen, and the economic outlook is uncertain. It depends partly on the duration of the war in Ukraine and how governments around the world 4
fill the gap in energy supplies. It also depends on decisions closer to home, including any further measures that might be put in place to cushion the blow of inflation for businesses and consumers. So how is this affecting recruitment companies and their advice to clients? It depends on the sector. Graeme Wolf, Director at Hexa Services, says that he hasn’t seen much impact yet. “We predominantly work in the construction sector, and freelance rates for construction workers went through the roof last year when the number of overseas workers was restricted and the self-employment income support scheme pushed salaries up,” he says. “So, in our sector, the situation has eased a little.” When it comes to his own business, Wolf accepts that office bills are rising, but his main concern is that increasing interest rates would cut into profits, because freelancers are paid weekly, while customers pay in around 90 days. Hexa’s staff salaries and bonuses, he says, are already generous. “Good consultants will be getting 10 to 12 job offers a day, so we need to be one step ahead. Our staff represent 80-90% of our business costs. If you wait for staff to ask for a pay rise, you’re too late,” he says. Jayne Morris, CEO of TPP, has a different perspective. Her company focuses on the not-for-profit sector and its customers are affected by rising costs in various ways. “Many of our candidates choose to work in this sector knowing that they could earn more in a commercial
arena, however salaries are creeping up generally, as we see in the monthly REC reports,” she says. “Donations to charities, in particular, may be squeezed, just after they’ve endured sharp falls in earnings from retail and events during the pandemic, so the third sector will see this as more of an issue than others.” TMM Recruitment’s CEO Amanda McCulloch is also seeing rising salaries affecting some of her firm’s specialist sectors. “In the north-east of Scotland there’s a shortage of applicants attracted to offshore North Sea jobs,” she says. “And onshore, we’re experiencing the resurgence of counter-offers in a tight candidate environment.” Pay inflation means many employers are having problems with retention, as staff move to try and maximise their earnings. “That’s why we encourage employers to consider the effectiveness of flexible benefits packages along with their remuneration,” says McCulloch.
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Statistics 54% the average fuel bill
increased by £693 for about 18 million households on standard tariffs on 1 April.
1.25p in the pound – the
increase in National Insurance rates for companies, workers and self-employed people introduced on 6 April.
40p per litre – the increase in the cost of petrol in the year to March 2022.
39% the increase in UK feed wheat prices in the year to March 2022.
3.8% the rise in regulated rail
prices in England and Wales (the highest for nine years).
6.6% the rise in the UK minimum wage.
5% the increase on the price of a pint of beer (average price £4.25).
This includes the hybrid working arrangements that most workers are now looking for. Morris says the expectation for home-working existed already and is not a direct consequence of rising costs, although these may affect decisions about a role that entails a long commute. Morris also shares the belief that other factors remain just as important as salaries, despite rising expenses. Her firm offers an employee-assistance helpline 24 hours a day, advice on domestic finances provided by Barclays, mental health first-aiders, and cyber security training to reduce the chance that staff fall victim to fraudsters. “We try to be transparent about our costs and the break-even point for each desk, so people know exactly where they are. Knowledge is power,” she says. “It’s www.rec.uk.com
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not just about finance and the cost of living crisis, it’s about having an overall awareness of everything going on in the market at the moment.” Hybrid working is already the norm at TPP, which has just signed a contract on new serviced offices in London that meet its expected future needs – far fewer interview rooms, but new “phone pods” to enable people to talk on Zoom calls without distractions. “We are lucky because we have a fixed rate for the first year and have a cap on the increase that our landlords can charge us for the second year as well, so we will be insulated from price rises for a while,” Morris says. “I’d advise anyone currently looking at contracts for new offices to shop around and look further ahead to limit shocks in the second year.” Having worked with clients who were
feeling the pain of rising salaries last year, Wolf has clear advice for others in the same situation today. “Be blunt,” he says. “Money is not the only factor, but it is a big one for freelancers. We turned away work if clients wouldn’t listen to us about the going rate of pay. The cost of getting the wrong person will be higher in the long term. Clients will come back to you later and appreciate your honesty.” Filling that role of a trusted advisor will be key for recruiters in the months ahead. Businesses across the world will be assessing their costs as inflation continues to rise, and prioritising their spending, including on recruitment. Providing real added value and building a partnership based on honesty and trust will be the best way for agencies and their clients to thrive together during this challenging year. May-June 2022 Recruitment Matters
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Employment law
legal update
Additional bank holidays By Katharine Scott, Legal & Compliance Advisor, REC
I
n England and Wales there are normally eight bank and public holidays each year. Scotland has nine and Northern Ireland has ten. However, in some years, including this year, extra bank holidays are added to celebrate important events. From Thursday 2 to Sunday 5 June 2022, there will be a four-day bank holiday weekend in celebration of the Queen’s Platinum Jubilee. The question of whether the worker is required to work on a bank or public holiday or not will depend on the terms of their contract. However, under the Agency Worker Regulations (AWR) 2010, temporary workers qualify for equal treatment over holiday entitlement after 12 weeks on an assignment. In this case, they may be entitled to the same treatment in relation to bank and public holidays as the client’s direct recruits or comparable employees. Employment businesses will need to obtain further information from their clients on this point.
Although it is common for employees to be given the right to take these days off and be paid, it is not a statutory right. Ultimately, it is up to the employer to determine whether workers will be paid if they do not work on a bank or public holiday, and whether these days should come out of the 28-day statutory entitlement or be added to it. This should be clearly stated in the employee’s contract. In the UK, workers have a statutory entitlement to 5.6 weeks’ (28 days’) holiday per year. This entitlement includes bank and public holidays. If a worker has been employed for less than a year, they must receive the pro-rata equivalent for the employer to meet their obligations. In most cases, temporary workers will receive only the statutory minimum holiday entitlement unless stated otherwise in their contract. If the worker has qualified under the AWR, they may become entitled
to holiday above the statutory minimum if the client provides this to their own direct recruits or comparable employees. In years where an extra bank or public holiday has been added to the calendar, workers will not automatically be entitled to the extra day of holiday unless their contract provides for this. If the worker’s contract states that they are entitled to the statutory minimum holiday, they will still be entitled to only 28 days (or the pro-rata equivalent) inclusive of all the public/bank holidays. If, however, a worker’s contract states that, for example, they are entitled to 20 days’ holiday plus public/bank holidays, they will benefit from any extra public or bank holidays.
Protecting your employees’ mental health and wellbeing It’s Mental Health Awareness week and a great time to remind employees of the help and support available through the workplace. Mental health problems are all too common and the leading cause of sickness absence. It’s staggering that each year 70 million work days are lost because of mental health problems, costing employers approximately £2.4bn per year. By taking a proactive approach to support their employees’ mental health, businesses could minimise disruption, reduce employee absence and boost productivity. REC members can visit the dedicated Howden website to find out more about how to help. 6
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Five practical ways to support employees’ mental health 1. Talk It is important to have regular open conversations about mental health with your employees and highlight what support is available. Talking openly about mental health will help to remove some of the stigma and make it easier for people to reach out for support. 2. Check in Ensure that you make time to check in regularly with your employees, virtually or in person, and try to understand how they are on a personal level. 3. Training Consider training your managers and leaders to spot the signs of poor mental
health in their teams. The more knowledge around what to look for, the greater the chance that support will reach those who need it most. 4. Signpost Signpost employees to the support services you already have in place, such as counselling sessions, a Digital GP or an Employee Assistance Programme. Often employees are unaware of what is available to support them and it can be useful to send out regular reminders. 5. Free services Mental health charity Mind has a wealth of free resources that can be shared with line managers and employees. www.rec.uk.com
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New opportunities
Bindu Cardoza is founder and CEO of Jascarm International Treat people as you want to be treated.
I was born in Leeds, but I have worked in five countries and have packaged Yorkshire puddings, sold insurance and supported an oncology department, as well as working in recruitment, so I know what it’s like to look for a job when you are a stranger. Candidates need to feel welcome and know they will be heard and respected, regardless of their age, race, gender or disability.
If you really want something, you will find a way to do it. As well as recruitment, I also offer motivation coaching and events because I see these as interconnected. The relationship with a recruitment professional should www.rec.uk.com
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Q&A
What I know
The fundamentals of good business and the value of a strong social media presence
be long-term. I started work when I was 16 and did a masters in human resource management when I was 40, so I want to help everyone know they can do whatever they want to do.
Learn from the negatives. Being bullied at school made me more passionate about equality.
Do things properly or not at all.
I closed my company in 2016 when I decided to projectmanage a new-build house and focus on my family. Now I have restarted it and will use all I’ve learnt in the past few years. You need to run a business well and operate to the highest standards – which is why I immediately rejoined the REC.
Michelle Merritt is Managing
Director of Wild Recruitment How is the role of social media in recruitment changing?
– your pages should be friendly and relatable.
We have always advised candidates to be mindful of their social media pages. We’re now encouraging employers to do the same. Currently, around 79% of jobseekers use social media in their search, and businesses without a positive presence on social media may lose out.
How should firms use social media?
Don’t forget the ‘social’ element. It’s tempting for businesses to post about products or services, but to use social media as a candidate attraction tool, you must give your pages personality. Think about what makes your business great and why people enjoy working there. Get those messages out
What messages do candidates seek?
Candidates look for hints about the company culture to determine what it would be like working there. Do they celebrate their staff? Are they charitable? Do they show positive social responsibility? Are they inclusive? Do they offer perks or rewards? What are their values? Candidates may also look at how the business engages with people on their social media pages.
Which are the top platforms?
LinkedIn is very popular with jobseekers and more candidates use it for their personal brand and to find work. They also look at Facebook for insights into potential employers.
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Training
EC Recruitment R Mastery Academy We talked to Steve Guest to find out more about the REC’s new Recruitment Mastery Programme Tell us more about the programme The REC Recruitment Mastery Programme is a recruitment training course that educates, trains and mentors recruiters in all areas of the recruitment process. It helps to lay the foundations, breaking down each specific area of the process and enabling participants to determine the right mindset for becoming a top performer. It is a modular virtual programme that is completely self-paced, making it adaptable to fit in with a recruiter’s day job, without impacting your daily KPIs and busy workday schedule. The programme is designed specifically to address the feedback I’ve had from so many disengaged consultants over the years, who are tired of attending time-consuming courses outside the office, when they just wanted to be at their desk, billing! Each module has four to six tailored training videos between 20 and 60 minutes long. Mentees can implement and apply the different elements of the learning themeselves. The group can come together, via video call, once a fortnight. This has proved invaluable to previous learners who want to connect and share learnings. Where did the idea for this programme come from? During the pandemic, in lockdown, many
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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 May-June 2022
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recruiters were on furlough, feeling insecure and unsure about what was around the corner – this was evident on social media. I reached out to my audience on LinkedIn and posted: “I am going to clear out my diary next week and if you are in the position where you need someone to chat to, a rant, a laugh, a cry or simply a discussion on strategy and what to do next, then book in for a free one-to-one call with me and we can see what we can do!” The response to this post was staggering. It resulted in 62 live video calls with recruiters I’d never met, who were based around the world. It was evident that there was a need for an accessible, affordable recruitment training programme in the market that allowed instant access and empowered individuals to do more and be better. Tell us more about yourself I am a qualified MCIPS buyer and have spent the past 16 years as a recruitment specialist. In addition to this, I’ve opened and built new regions, brands and businesses in the UK, whilst specialising in recruiting commercial permanent placements within the construction sector.
I have built a strong reputation globally based upon my processes, procedures and having the right structures in place in order to achieve high levels of performance. I have written two number one bestselling books – most notably, my first book, Top Biller – The Life of a Recruiter, has now sold 10,000 copies worldwide and is currently the most reviewed recruitment book on Amazon. My second book is A Personal Brand Story – Top Biller to Global Mentor, published last year. Most recently, I have built and developed the 12-week Recruitment Mastery Programme, which is now accredited and working in partnership with the REC. The programme has successfully coached recruiters worldwide, from complete newcomers to consultants with over ten years’ experience. The programme is open now, so head to www.rec.uk.com/masteryacademy or call the REC on 020 7009 2100 to find out more and book your place.
Membership Department: Membership: 020 7009 2100, Customer Services: 020 7009 2100 Publishers: Redactive Publishing Ltd, Fora, 9 Dallington Street, London EC1V 0LN Tel: 020 7880 6200. www.redactive.co.uk Editorial: Editor Ruth Prickett. Production Editor: Vanessa Townsend Production: Production Executive: Rachel Young rachel.young@redactive.co.uk Tel: 020 7880 6209 Printing: Printed by Precision Colour Printing © 2022 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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