Recruiter- April 2015

April 2015

www.recruiter.co.uk

BUSINESS INTELLIGENCE FOR RECRUITMENT AND RESOURCING PROFESSIONALS

Charlotte Harris For the g global HR director at flexible workplace provider Regus, g recruiting g is all about location, location, location

MAKING THE SHORTLIST

THE OUTSIDE IN

Revealed — the full list of shortlisted companies and individuals for 2015’s Recruiter Awards for Excellence

What does it take to move in-house if you are an agency recruiter?

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UMBRELLA STAND Umbrella companies fight back against the burden of further legislation

Recruitment Matters 10/03/2015 16:06

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Recruitment is at the heart of the world of work and its pulse, and especially in times of such scrutiny into what this industry and its professionals do, it is imperative to decide what your own contribution will be to ensuring the long-term health of business’s beating heart.

One organisation we spoke with recently told us of “non-negotiables” within that business relating to barriers that their recruiters are to observe and respect. Other organisations have begun to install real values in their businesses, instilling them in their employees and basing appraisals upon how well those values are lived. One such measure in place at a recruitment company on the rise is: “You often find yourself volunteering to do things that would not impact [on] your personal billings.”

Collectively, such attitudes can make a difference and go ever further to create an industry, profession and practices that are recognised for making the world of work a better place for everyone from the minimum wage worker to the most senior executive. The time to make a difference is now.

NEWS 5

FEATURES

Bentley career day drives experienced talent The luxury car manufacturer’s recruitment day attracted hundreds of professionals

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Don’t dismiss business value of resourcers Recruiters should give resourcing roles the importance they deserve

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GLA stakeholders urged to recognise slavery signs Tackling modern slavery is everyone’s job, the GLA conference hears

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Freedom to work, the right to work under liveable conditions and the right to progress at work emerged as themes in the recruitment world we at Recruiter covered this month — from the publication of reports about the UK’s older workers and careers for women in the UK intelligence community, to the modern slavery debate at the recent Gangmasters Licensing Authority conference.

Akin Falope

Contents

26 COVER STORY Charlotte Harris, global HR director, flexible workplace provider Regus 33 Umbrella stand Umbrella companies are fighting back against the latest tranche of government legislation to bear down on tax avoidance and bad practice in the sector

REGULARS 19 Interaction

Tech & tools: Embedding video interviewing into the recruitment process

ANALYSIS 14 Sector Analysis HR 17 Global Spotlight on South Africa 24 Insight Making the move inside: research by Aspen In-house

Soapbox: James Austen, Carbon60 19 Emma Mirrington 21 Soundbites 41 Movers & Shakers 19

Industry moves 42 Bloggers with Bite:

Jeremy Pierce

WHO’S HIRING? 38 Jark 40 Recruiter Republic

DeeDee Doke, Editor

Scan here to get your own copy of Recruiter

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EDITORIAL Editor: DeeDee Doke T: +44 (0)20 7880 7601 deedee.doke@recruiter.co.uk Reporters: Sarah Marquet T: +44 (0)20 7880 7606 sarah.marquet@recruiter.co.uk; Graham Simons T: +44 (0)20 7880 7603 graham.simons@recruiter.co.uk Contributing writers: Colin Cottell, Sue Weekes Production editor: Vanessa Townsend T: +44 (0)20 7880 7602 vanessa.townsend@recruiter.co.uk Art editor: Adrian Taylor ADVERTISING Business development manager: Tom Culley T: +44 (0)20 7880 7607 tom.culley@recruiter. co.uk Senior sales executive: Lisa-Jane Parker +44 (0)20 7880 7610 lisa-jane.parker@recruiter.co.uk Recruitment advertising: Amalia Zafeiratou T+44 (0)20 7880 7608 amalia@redactive.co.uk Fax +44 (0)20 7880 7553 PRODUCTION Production executive: Rachel Young T+44 (0)20 7880 6209 rachel.young@redactive.co.uk PUBLISHING Publishing director: Aaron Nicholls T: +44 (0)20 7880 8547 aaron.nicholls@redactive.co.uk RECRUITER AWARDS Events: Rebecca West T: +44 (0)20 7880 6236 rebecca.west@redactive.co.uk CIRCULATION and SUBSCRIPTIONS To receive a regular copy of Recruiter, the leading magazine for recruitment and resourcing professionals, telephone +44 (0)20 8950 9117 or email recruiter@abacusemedia.com • Recruiter is also available to people who do not meet our terms of control: Annual subscription rate for 12 issues: £29.99 UK £35 Europe and Rest of the World • To purchase reprints or multiple copies of the magazine, contact Ryan Hadden T: +44 (0)20 7880 7618 ryan.hadden@redactive.co.uk

Total average net circulation between 1 July 2013 & 30 June 2014 – 18,994. Recruiter is also sent to all REC members

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CONTRIBUTIONS Contributions are invited, but when not accepted will be returned only if accompanied by a fully stamped and addressed envelope. Articles should be emailed. No responsibility can be taken for drawings, photographs or literary contributions during delivery, transmission or in the editor’s hands. © 2015 Redactive Media Group. All rights reserved. This publication (and any part thereof) may not be reproduced, transmitted or stored in print or electronic format (including but not limited to any online service, any database or any part of the internet) or in any other format in any media whatsoever, without the prior written permission of Redactive Media Group. Redactive Media Group accepts no liability for the accuracy of the contents or any opinions expressed herein. The publishers cannot accept liability for any loss arising from the late appearance or non-publication of any advertisement for any reason whatsoever. ISSN 1475-7478

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RECRUITER

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BENTLEY CAREER DAY DRIVES UP EXPERIENCED PIPELINE For luxury car manufacturer Bentley, being an employer of choice means receiving a lot of applications. The problem is, not always the right people apply.

Last month the company held a recruitment day at its Crewe headquarters following the announcement of the creation of 300 roles supporting the launch of its new vehicle, the Bentayga. The aim was not just to help fill those roles but to build a talent pipeline and ensure hiring managers knew of interested, potential and up-and-coming talent.

Due to the luxury nature of the vehicles, some roles were very niche and therefore hard to fill — creak and rattle engineer, for example.

The day saw about 1,100 people enter Bentley’s doors over a four-hour period, with some queuing through the car park and down the street from 8am, an hour before the advertised start time.

Recruitment manager Helen Judson told Recruiter it was the first time Bentley had held a recruitment day designed to attract experienced professionals. The company usually holds a yearly event aimed at apprentices.

News “We’re looking for people with material science degrees… ideally people with wood science but that’s like winning the lottery.”

HEAD OF LABORATORY DR HELEN DAVOCK, WHOSE TEAM IS RESPONSIBLE FOR QUALITY CONTROL, ON WHY SHE FOUND ROLES HARD TO FILL

“Candidates are having conversations with the hiring managers. Normally HR is the gateway and they [candidates] don’t get to talk to the manager until after the assessment.”

RECRUITMENT MANAGER HELEN JUDSON ON HOW THE DAY WAS DIFFERENT TO NORMAL RECRUITMENT TACTICS

“It was a coincidence that we have some roles open at the moment. I was more interested in what talent is out there in the local area.”

LIFESTYLE LICENCES MANAGER ALISON LACY, WHOSE DEPARTMENT SITS WITHIN THE SALES AND MARKETING DIVISION, ON WHAT SHE HAD HOPED TO GET OUT OF THE DAY

SARAH MARQUET sarah.marquet@recruiter.co.uk

RECRUITERS UNDER SPOTLIGHT AS AGEISM REMAINS IN THE WORKPLACE A new report on retaining, retraining and recruiting older workers has called on government to introduce a national strategy to combat “significant evidence” of unconscious bias and age discrimination.

Authored by the government’s business champion for older workers Dr Ros Altmann CBE, the report suggests improving adult skills, funding apprenticeships for all ages and even launching a formal investigation of the recruitment industry if recruiters continue to allow or practise age discrimination.

“Although the government has made a start by abolishing the default retirement age, much more is needed,” she said. “There remains significant ageism in the workplace, with barriers to promotion, to training opportunities, to re-skilling and to returning to work after time out due to redundancy or caring.”

Her recommendations include improving Jobcentre programmes for over-50s jobseekers, imposing penalties for breaking the law against age discrimination, consideration of introducing Social Impact Bonds FOR MORE NEWS AND to fund back-to-work COMMENTS GO ONLINE programmes and training for long-term unemployed RECRUITER.CO.UK older workers or returning carers and using more WWW.RECRUITER.CO.UK

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older women in visual media. Altmann also called for “a joined-up government approach to tackling ageism”.

The report also served as a platform to debunk myths about older workers.

“It is not true that each older worker in a job denies employment to a younger person,” Altmann said. “There is not a fixed number of jobs and the more spending power in the economy, the more jobs can be created.

“I hope that the next government, Dr Ros Altmann CBE whatever its make-up, will embrace the recommendations… This must not be a political issue, it is of national importance regardless of politics.”

Model/actress Twiggy and TV journalist/presenter John Stapleton are championing the report, and appeared at its formal launch last week at the House of Commons. Stapleton was accompanied by his wife, TV presenter Lynn Faulds Wood.

The report, ‘A New Vision for Older Workers: Retain, Retrain, Recruit’, was published on 11 March and can be found here on the government’s website: http://bit.ly/1MtAuue DEEDEE DOKE

deedee.doke@recruiter.co.uk RECRUITER

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News Contract News Adecco: Acquired Canadian career transition provider Knightsbridge Human Capital Solutions…

Alexander Mann Solutions: Moved its HR operations to the cloud with Workday, a finance and HR cloud applications provider…

Health Education England (HEE): Adopted software platform Oriel to manage recruitment of all UK medical, dental, public health and healthcare science professionals…

Idibu: Entered a licensing agreement with global recruiter Kelly Services…

Manpower: Has been granted a Vietnamese Subleasing Licence…

MedicsPro: Has won a contract to supply medical staff to prison services throughout the UK...

Morson International: Won a five-year contract to supply staff to Network Rail...

Onfido: Secured £3m in investment from LastMinute. com’s Brent Hoberman CBE, Wellington Partners and CrunchFund…

Recruitive: Added NQAjobs.com to its panel of more than 1,500 job boards…

Sonru: Announced a partnership with Canadian media and marketing group TC Media…

Spring Professional: Selected cloud-based staffing and recruitment workflow software provider TalentRover for its Asia operations…

SThree: Appointed professional umbrella employer Parasol to its approved supplier list (ASL) for 2015-16.

Thoughts from recruiter.co.uk, Twitter and beyond…

RECRUITER

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ANDY CURLEWIS, DIRECTOR – BRAND, DIGITAL & COMMUNICATIONS, CIELO

DON’T DISMISS BUSINESS VALUE OF RESOURCERS The business value of resourcers is becoming increasingly understood and as a result, more recruitment agencies are incorporating such roles into their workforce planning strategies, master headhunter Irene McManus stated.

While the role of resourcer has “always been around”, McManus said she had lately noticed an increase in such jobs.

“Recruitment organisations are taking into account that having a resourcer on board will help that flow with candidates and therefore market presence and branding, and that penetration in their market.”

At the same time, resourcers should not necessarily be seen as junior recruiters, McManus said.

McManus, who has been in recruitment since 1988, recently delivered a Recruiter-attended Association of Professional Staffing Companies (APSCo)

Irene McManus

resourcer course in which she offered her top tip for being a great resourcer: don’t be afraid to pick up the phone.

Following the one-day course, she told Recruiter a great resourcer should also have certain characteristics: • Tenacity, drive and focus in their approach.

• Resilience, the ability to bounce back and refocus and not be put off by rejection.

• Confidence in the role, in the company they work for and in themselves, as well as market knowledge.

• Persuasion and influencing skills for when dealing with passive candidates.

• They must be personable.

Resourcers focus on identifying potential candidates, leaving recruiters to focus on clients.

While resourcing work can allow practitioners to build confidence before potentially moving into a recruitment role, resourcing has become a significant career in its own right.

A number of major recruitment organisations have created senior-level resourcing roles, reflecting the importance of the function to successful recruitment.

SARAH MARQUET sarah.marquet@recruiter.co.uk

HUMILIS GIVES BACK TO STAFF THROUGH EQUITY OFFER HUMILIS IS PROTECTING the training investment the cloud-based technology •staffi ng specialist makes into its consultants by offering them equity in its

business, says managing director Ed Kelly.

The firm launched at the start of the year as a stand-alone business, sharing back office operations with established sister IT staffing specialist Vertex Solutions.

Kelly, who is also a director at Vertex, told Recruiter Humilis consultants develop specific knowledge across the firm’s specialist areas of people-focused cloud technology and human capital products such as Workday, Success Factors and Oracle.

This training causes consultants to be “completely immersed” in the market by ensuring consultants meet with candidates as much as possible. In addition, rather than holding his consultants to stringent key performance indicators (KPIs), Kelly measures his consultants’ success by their knowledge of the market place. “I don’t sit on their shoulders. I don’t look at KPIs. I look at ‘what do you know about the market?’ ” he told Recruiter.

He continued, saying he asks consultants: “How is your knowledge progressing with what you’re doing? Tell me about the fantastic candidates you have. Tell me about new projects in the offing at the moment.”

To keep this knowledge within the business and stave off interest from larger competitors looking to poach Humilis’ talent, the firm has chosen to offer consultants equity within its business — “probably about 2-3%”, Kelly said.

“They’ve already bought into the business anyway and this just gives them the feeling that they’re not just doing this for somebody else, ‘I’m doing it for myself so my success and the business success overall is linked’ — that we’re all in this together.”

GRAHAM SIMONS

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“We’re all terrified of making decisions if we don’t have a big spreadsheet in front of us”

graham.simons@recruiter.co.uk WWW.RECRUITER.CO.UK

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News

“If you want to be taken seriously, do serious things” BRIGADIER (RETD) NICKY MOFFAT CBE SPEAKING AT AN ANGELA MORTIMER EVENT TO MARK INTERNATIONAL WOMEN’S DAY

“It doesn’t matter if the worker comes from Glasgow or Gdansk, a vulnerable worker is a vulnerable worker… and regardless of the sector they are employed in, they deserve protection” MEAT PROCESSING INDUSTRY VETERAN SCOT WALKER SPEAKING AT THE GLA CONFERENCE

GLA DELEGATES URGED TO RECOGNISE SLAVERY Tackling modern slavery is the responsibility of everyone — from business owners securing supply chains to law enforcement agencies acting on information; from faith and voluntary groups to the average citizen who notices unusual activity.

That was the common message at the Gangmasters Licensing Authority’s (GLA) first National Stakeholder conference in Derby recently. More than 200 delegates attended.

Karen Bradley MP, minister for modern slavery and organised crime, put the number of victims of modern slavery in the UK at 10-13,000. However, she said the government’s Modern Slavery Bill, currently out for public consultation, was not the sole answer to ending such practices.

Instead, she urged the audience to learn to identify the signs that slavery may be underway nearby.

The Right Reverend Dr Alastair Redfern, Bishop of Derby,

of” setting up offered an example a professional from Derby: “Every academy morning… 80 odd to establish men are standing on a competency in the street corner and vans field of ethical trade. come to pick them She said as part of up and take them that, it was working to work… we now with the GLA and know that is a sign of the University of modern slavery.

Derby to develop “It’s a role for the training to target all wider public to notice Karen Bradley MP levels of the supply things like that and chain so that companies will be say to the police and statutory agencies, ‘Should we check what’s better able to detect and address modern slavery in supply chains. going on here’?”

GLA chief executive Paul Another speaker, Scot Walker, said in his 25+ year career in the Broadbent said the authority meat industry, he had witnessed had been approached by the University of Huddersfield, many forms of exploitation. “the national epicentre for the Often vulnerable workers were training of healthcare visitors”, scared to “put their heads to provide assistance in training above the parapet” to report people to spot signs of labour mistreatment and health & safety issues for fear of losing out exploitation, “because those people, for the public sector, are on work, he said.

Ethical Trading Initiative (ETI) in and out of vulnerable people’s addresses all the time and they head of knowledge and learning could spot signs”.

Cindy Berman announced the There were also calls initiative was “in the process

BIOMETRICS – ON THEIR WAY TO UK RECRUITERS Recruitment technology consultant Felix Wetzel has advised that technologies measuring and analysing human body characteristics could be a reality for UK recruiters soon.

Speaking at the third annual The Employment Agency Movement (TEAM) conference in early March, Wetzel explained that a newly launched service aims to provide a cultural fit for clients by listening to tone of voice measured against facial expressions, and the tone of voice of top performers at interview to identify the right match for a job.

“It’s mainly in the US at the moment but biometrics in recruitment will happen here,” he predicted.

Wetzel suggested that recruiters should not see technology as a WWW.RECRUITER.CO.UK

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threat as it can free up time to develop and truly understand their niche in the market.

The niche imperative was one of the most discussed issues at the TEAM event. For instance, Annabelle Moggridge a director at digital recruiter Fresh Tech IT, told Recruiter she chose to launch her business in a part of the market where there have been fewer entrants, targeting corporate development professionals in IT. At the same time Sarah Grace, director at commercial recruiter Kate & Co, prizes the quality of work secured.

This means consultants seek exclusive business with clients as much as possible.

And the ability of smaller recruiters to access that exclusivity and hard-to-find talent within niches is not lost on larger

agencies.

Emma Plumtree, director at Legalis Global, previously Hudson Legal, told Recruiter she attended Felix Wetzel the event to find partners who can help her access legal candidates who tend to wait to be headhunted.

“We have about 200 vacancies at any one time to fill and we never have enough candidates so I want to find who can potentially help fill the pipeline of candidates… is there any way I can partner with any of the other TEAM members to fill any of the vacancies we have?”

About 300 recruiters attended the event held near Nottingham.

throughout the day for the GLA’s remit to be extended.

As Walker pointed out, the GLA’s remit had, instead of being extended, been reduced in recent years. It no longer covers the forestry sector.

“The lessons of history have not been learned,” he said.

The sectors most often mentioned in the context of potential remit extension were social care, hospitality and construction.

UK Independent Anti-Slavery Commissioner Kevin Hyland OBE said gangmasters who had lost licences were found to be operating on other sectors but the GLA could do nothing about it and that provided “a clear case for looking seriously at extending powers of the GLA”.

While Bradley acknowledged such calls, she said any extension would need to be done in a controlled way and based on “the best evidence available”.

SARAH MARQUET sarah.marquet@recruiter.co.uk

RETRAINING ABSOLUTE KEY TO H1 SUCCESS Global recruitment firm H1 Healthcare Group, which recently acquired Aberdeenbased housing support and care-at-home service company Absolute Care (Scotland), will retrain the 60 staff taken on.

Rated unsatisfactory by the Care Inspectorate for its quality of staffing and care, Absolute Care entered into liquidation at the beginning of the year.

H1 director Alan MacKenzie told Recruiter about £200k had been invested over the last year into its training division H1 Learning. The division aims to provide staff with relevant training before delivering care. All H1 employees must undertake and pass this training to retain their H1 Healthcare ‘fitness to work’ certificate.

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News

Tech & tools

EMBEDDING VIDEO INTERVIEWING INTO HOW YOU RECRUIT AND ENGAGE The cost and time-savings that video interviewing is able to deliver have been evident from the early days. However, its benefits to the employer and candidate are even more wideranging when it is implemented properly.

Rather than as an add-on to make the recruiter’s life easier, it should be integrated into the recruitment process and used to engage the candidate as well as communicate positive messages about the organisation.

“It supports our approach to putting employer brand at the heart of resourcing and we use video interviewing and digital assessment when it matches a company brand,” says consultant Kate Bradley, a chartered psychologist at recruitment branding specialists TMP Worldwide UK, which is a longtime user of video technology.

Kirstie Kelly, director at LaunchPad Recruits, which helps clients to build a bespoke videointerviewing platform, stresses that video should be used to “power processes”. “In the early days candidates didn’t engage with it and employers didn’t know what to do with the output so it became another tool to confuse the process,” she says. “It should be used to provide a great user experience and employers should start with their aspirations for it and work backwards.”

Treat it like other recruitment technologies Define what you want to achieve from video interviewing much like you would when using any other recruitment technology and apply the same approach as you would any other method of assessment.

Bradley, who has used video in the recruitment of entry-level as well as senior management roles, says this begins with a rigorous job analysis to understand the assessment criteria: “So we can

GUIDO ROSA, IKON

VIDEO INTERVIEWING USED TO BE A STAND-ALONE FUNCTION, BUT KEY TO ITS SUCCESS IS A MORE HOLISTIC APPROACH AND INTEGRATION INTO THE RECRUITMENT PROCESS

define what good looks like. We then decide on the objective of the video interview: where in the process it fits and what it can be used to assess.”

Kelly agrees that it is important to define your “ultimate” process and deploy the video against that: “Like any recruitment technology, demand it fits your requirements.”

Put candidate experience first Video interviewing is still relatively new for some candidates so ensure they are guaranteed a positive experience before, during and after the interview.

Joy Redmond, head of the Research and Knowledge Hub at Sonru, which provides an online video interview platform for screening candidates, reminds employers that videointerviewing is a reflection of the brand and that they should focus on communication and transparency.

“Inform candidates at the application stage that video interviewing will be used as part of the selection process,” she says. “Adding a personal video introduction to greet the candidates when they log in helps put them at ease.”

Kelly stresses that how a

candidate “enters and exits” the process is extremely important: “Consider how they transition from one part of the process to the next,” she says. “Ensure they feel connected and engaged with the process so they will take the decision to move forward.”

Structure questions carefully In recorded video interviews, there can be no grey areas and ambiguity when it comes to questions. “Make sure they give the candidate a chance to show you their personality, knowledge and expertise,” says Redmond.

“Open-ended questions work well.” Bradley says that the main difference between telephone interviewing and video is that interviewers are unable to probe further after asking a question.

“We take account of this during the design process when we carry out the job analysis and assessment criteria,” she says.

“One of the benefits of video interviewing is that it helps to standardise the process: everyone gets the same questions and the same opportunity to answer them.” She also recommends having clear scoring guidelines and behavioural indicators as you would with telephone interviewing.

Measuring effectiveness Quality of hire is the priority but other obvious measures are cost-per-hire, speed-to-offer and time-to-hire. Kelly says that assessing how much it has enhanced the candidate experience is more difficult but equally important while Redmond urges employers to look at candidate conversation rates.

“In addition, video interviewing often leads to a reduction in the number of stages in your recruitment process, making it more efficient in the end,” Redmond says.

Bradley comments that while TMP Worldwide UK’s approach enables it to realise cost-savings and efficiency gains, videointerviewing’s effectiveness as an assessment tool has to be measured: “Make sure it is valid and predictive of performance in the role.”

Context and feedback The YouTube/digital generation is well used to video, but Kelly points out that it can work “beautifully” across all demographics. For this to happen, though, employers must provide “context” around the video interview.

“Candidates must understand how and why they are being measured,” she says. “It isn’t about face fit and performance.

A financial controller articulating a P&L (profit and loss) might not deliver the best performance [on video] but it’s about them being able to demonstrate their capability.”

Build feedback mechanisms into the process such as surveys to assess how candidates rate the experience. “This can provide a more qualitative measure of success,” says Redmond. “So you can evolve your video interview process as you go.”

SUE WEEKES

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RECRUITER EVENTS

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1m+ PHOTOS: SARAH MARQUET

women have started an apprenticeship since 2010-11, compared to 972,000 men, according to government figures to mark National Apprenticeship Week (9-13 March)

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L-r: GatenbySanderson’s Martin Tucker and Mark Turner

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Agile Intelligence’s Sue Dodd: years of growth ahead

PROFITABILITY AND GROWTH KEYTO RECRUITERS’ SUCCESS LEADERS FROM FIRMS ON RECRUITER’S FAST 50 AND HOT 100 LISTS HAD A CHANCE TO HEAR THE SECRETS OF THE TOP COMPANIES

procurement, London

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An air of jubilation descended upon the Royal Bank of Scotland’s City of London offices as the leaders of the agencies that comprised Recruiter’s 2015 FAST 50 and 2014 HOT 100 lists met for an evening celebrating their achievements.

As agency leaders collected certificates for their firm being a FAST 50 or HOT 100 company, in kicking off the night’s proceedings Recruiter editor DeeDee Doke drew attention to the dozen recruiters collecting a pair of certificates for appearing on both lists.

“Profitability and growth are definitely compatible. We want to congratulate everybody who was on either list or both lists,” Doke told guests.

The HOT 100 is researched on Recruiter’s behalf by Agile Intelligence, with Boxington Corporate Finance conducting the research for the FAST 50.

One of the firms to achieve the accolade of being both a FAST 50 and HOT 100 recruiter in the past year is GatenbySanderson. The public sector recruiter came out on top of the FAST 50 2015 and at No 12 in the HOT 100 2014.

GatenbySanderson’s joint chief executive Martin Tucker told the audience that investing in technology, while staying close to the public sector recruiter’s client base, has been the secret to combining profitability with growth.

Boxington Corporate Finance’s Tim Evans: ‘super specialist’ approach

“We created an environment where the very best people want to come and join us and stay with us,” Tucker said.

“We invested in technology even when times were tough.

We never ever forget that the most important people we do business with are our clients and candidates because for us, very often the two are interchangeable.”

His joint CEO Mark Turner, who shared Tucker’s platform, added when the public sector crash hit in 2009-10, the public sector staffing specialist could have walked away from its core client base but chose not to.

“We stayed very close to our core markets,” Turner told the audience. “We rode out the recession. We changed our operating model and we provided value to clients, meaning we were able to

grow marketshare really significantly.”

In the long term those recruiters who make the cut for future FAST 50 lists are likely to come from new breed recruiters who demonstrate that client value by developing a “super specialist” approach, Tim Evans, managing director of Boxington Corporate Finance, told guests.

“We think the recruiters that keep moving onto the FAST 50 will be those who take a super specialist approach so they are specialists already but they develop super specialists within their sectors,” he said.

“That is a very powerful way for recruiters to get on PSLs (preferred supplier lists) and protect margins.”

With regards to prospects for profitability of the UK recruitment sector in 2015, Sue Dodd, managing director of Agile Intelligence, told the audience there was a “definite feel” among UK businesses that Britain should be in for a few good years of growth with the permanent placement market continuing to grow in the next year.

• The FAST 50/HOT 100 event was hosted by RBS. GRAHAM SIMONS graham.simons@recruiter.co.uk

Recruiter’s FAST 50 2015 was sponsored by Hitachi Capital Invoice Finance

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JUDGES WHITTLE DOWN ENTRANTS FOR AWARDS RECRUITER AWARDS SHORTLIST Agency Recruitment Leader of the Year, sponsored by ICS (Independent Contractor Services) Jason Bowler, Resourcing Group Matthew Churchward, The Asoria Group Natasha Clarke, SThree Kirstin Duffy, BRUIN Financial Shubber Raja, Medilink Consulting Debbie Smith, Caritas Recruitment Helen Stokes, Major Players In-House Recruitment Leader of the Year Gregory Allen, Lloyd’s Register Matthew Jeffery, SAP Mark Linden, Allied Healthcare Grant Weinberg, Gilead Sciences Recruitment Industry Entrepreneur of the Year, sponsored by Invest|R Group Ashley Alinia, Right Track Recruitment, part of Right Track Group Lee Biggins, CV-Library Tony Goodwin, Antal International Simon La Fosse, La Fosse Associates Shubber Raja, Medilink Consulting Darren Ryemill, Opus Recruitment Solutions Best Candidate Experience EMC The Phoenix Group in partnership with ThirtyThree White Stuff Best Apprentice/School Leaver Recruitment Strategy Birmingham City Council EGGER (UK) Fidelity Worldwide Investment Lancashire County Council Wesleyan Assurance Society Best Global/International Recruitment Strategy Emirates Airlines SAP Best Graduate Recruitment Strategy Atkins Jaguar Land Rover in partnership with Pink Squid SAP WM Morrison in partnership with Capp & Co Innovation in Recruitment B&Q in partnership with Talent Q My Dentist in partnership with Dental Talent Tree Nestlé UK in partnership with Capp & Co Originem SAP Most Effective Employer Brand Development King in partnership with Pink Squid SAP

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WITH HUNDREDS OF ENTRIES TO CONTEND WITH, THE JUDGES FOR 2015’S RECRUITER AWARDS FOR EXCELLENCE, IN ASSOCIATION WITH ANDERSON GROUP, RECENTLY MET FOR A DAY IN CENTRAL LONDON TO FINALISE THE SHORTLIST FOR MAY’S AWARDS

The Original Bowling Company in partnership with andSoMe Best In-House Recruitment Team EY UK LV= SAP Best Public Sector In-House Recruitment Team of the Year Birmingham City Council Hertfordshire County Council Weston College Best Recruitment Marketing Team Aspire FiveTen Group InterQuest Group Major Players Staffgroup, parent company of Eurostaff & Earthstaff Best Candidate Care, sponsored by Anderson Group Acre Annapurna Recruitment Earthstaff Energize Recruitment Solutions Morgan McKinley Penta Consulting Sanctuary Personnel Understanding Recruitment Best Client Service, sponsored by the REC Argyll Scott CBSbutler Day Webster EMR Search & Selection Energize Recruitment Solutions Henderson Scott hyphen Morgan Hunt UK Nicoll Curtin Penta Consulting Search Consultancy Tangent International Understanding Recruitment Best Banking/Financial Recruitment Agency, sponsored by the Institute of Chartered Accountants in England and Wales (ICAEW) BRUIN Financial Huxley Banking & Financial Services Kea Consultants Morgan McKinley Oliver James Associates Selby Jennings, part of Phaidon International Group Best Creative/Digital/Media Recruitment Agency Brand Recruitment Major Players Purple Consultancy Best Engineering Recruitment Agency Air Energi CBSbutler

Consilium Group Contract Scotland Earthstaff Huxley Engineering Networkers International Tangent International Best International Recruitment Agency First Point Group Laurence Simons International Oil Consultants Penta Consulting Phaidon International Robert Walters Spencer Ogden Tangent International Best IT Recruitment Agency Annapurna IT ConSol Partners Eurostaff Evolution Recruitment Solutions Henderson Scott LA International Computer Consultants Networkers International Best New Agency, sponsored by Anderson Group Finlay Jude Associates Primary Care People Quant Capital Rapid search & interim Venture Recruitment Best Professional Services Recruitment Agency Annapurna Recruitment Douglas Scott Legal Recruitment Goodman Masson LMA Recruitment Best Public Sector Recruitment Agency Caritas Recruitment Eden Brown GatenbySanderson HCL Workforce Solutions Morgan Hunt UK RIG Locums Sanctuary Personnel TTM Healthcare Best Temporary Recruitment Agency Caritas Recruitment Contract Scotland Day Webster HCL Social Care Resourcing Group Your World Recruitment Group Recruitment Agency of the Year (more than 100 employees), sponsored by My Key Pay Day Webster Goodman Masson Investigo LA International Computer Consultants

Phaidon International The SR Group Your World Recruitment Group Recruitment Agency of the Year (fewer than 100 employees) Annapurna Recruitment Caritas Energize Recruitment Solutions Finegreen Associates Hunter Healthcare Instant Impact La Fosse Associates Medilink Consulting Nicoll Curtin One Step Recruitment The Asoria Group TTM Healthcare Best Embedded Recruitment Team Essex County Council with Capita Resourcing Aviva with hyphen C & J Clark International with Meridian Business Support Thames Water with Pertemps Recruitment Partnership World Duty Free Group with ResourceBank Outstanding Outsourced Recruitment Organisation Cielo Datum RPO GTI Recruiting Solutions Matt Burton Associates Omni RMS Recruitment Technology Innovation of the Year Biotech Designs Creativepool Mercury xRM Firefish Software iFollowOffice Sonovate Talent Q Best Job/Careers Board Bubble Jobs CareersinAudit.com Creativepool CV-Library LoveLocalJobs.com Technojobs Most Effective Recruitment Marketing Campaign, sponsored by RACS Group Code Hunter — BNP Paribas in partnership with Tonic Build Something Better — EY in partnership with MSLGROUP UK It’s all in the detail — Jaguar Land Rover in partnership with Pink Squid Together we are — Jaguar Land Rover in partnership with Pink Squid Financial Service Risk and Regulation — PwC in partnership with ThirtyThree

RECRUITER

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SHOW 2015

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Launching in November, a new national event for the recruitment industry in the heart of London that will inspire, inform, engage – and entertain!

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Expect: • Content sessions that will inspire you to greater success • Networking with thousands of peers, clients and suppliers over two packed days • Opportunities to do business on site • Easy access to the event at our central London location from all over the country • To pay nothing to get in...

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Sector Analysis

HR WORD FROM THE EXPERTS IN THE FIELD IS THAT THE MORE TRADITIONAL CAREER ROUTES FOR HR ROLES ARE FAST BECOMING A THING OF THE PAST

Iain McAdam, associate director, Digby Morgan: “At the lower level, roles tend to be more transactional, more of a ‘doing’ role and probably less attractive for junior candidates.”

Darren Wentworth, partner, Frazer Jones: “Employers need to sell their vision, their growth plans, why their opportunity is better than the next — not just the role but from a career perspective.”

EMPLOYMENT NUMBERS

140,000 120,000 100,000 80,000

150,000

Q Q2 (Apr-Jun 2013) Q Q2 (Apr-Jun 2014)

160,000

3,570

Source: ONS Labour Force Survey – ‘Employment by Occupation’

130,000

MARCH 2015

MARCH 2014

3,059

have the historic volume of individuals moving along the traditional HR path of HR administrator, to HR admin, and then manager touching all areas of HR on their career journey. It’s a generational thing. Even after a year to 18 months in the profession, there is no fear of not having a job. They prefer to have a good contract for six months and then go off on holiday.”

COLIN COTTELL

Source: reed.co.uk

HR JOBS POSTED ONLINE

Jeremy Thornton, founder, Oasis HR: “You no longer

124,000

“The challenge is to find innovative shared services people, people who are plugged into technology,” says Iain McAdam, associate director at international HR recruiter Digby Morgan.

“These are people who can make HR available on a smart phone and a tablet rather than just a desktop, and bring a lot more mobility and accessibility to technology.” He adds that such people can work to implement the more customer-friendly “new breed of technology”.

“HR has become more technology-based,” agrees Lindsey Tasker, HR operations director, Wm Morrison Supermarkets. “There are more and more talent systems in the market, more recruitment systems and management systems.

The step from that is finding people who can analyse the big ball of data that you ultimately create.

“Just as we need the people that can analyse our customer data, we need to find people with the data analytical skills to draw real insights from their colleague data.”

Adrian Thomas, an HR and recruitment interim consultant, and previously head of resourcing at Network Rail, says the need for HR people who can work with and embrace technology is vital because “HR is often the holder of a lot of personal information, and also the route to market for new staff”, which is more and more via the digital route.

However, Thomas voices concerns over the way HR talent has traditionally been managed and developed remains fit for purpose. “I don’t think that it has really got to grips with the slickness and speed of operations caused by

Views from the market

the digitalisation of large parts of industry. The teaching of HR at colleges, the development people go through as part of their [HR professional body] CIPD training, I think that could be enhanced to put HR in front of the game.”

Technology is not the only driver of demand for HR professionals with a non-traditional HR skillset, says Tasker. Commercial acumen is increasingly high up the agenda. “People tend to grow up in a specialism and can become isolated from the main purpose of the business,” he explains. “That is why we are trying to recruit people who can understand the P&L [profit and loss], can talk the language of business and are really credible when they are talking to their business partners.”

Darren Wentworth, partner at international HR recruiter Frazer Jones, says that employers are increasingly going outside the HR profession to find these skills: “Clients are saying ‘Give me business people who do HR rather than an HR person’.” Such individuals have “an understanding of operations management and a vision of management”, he says. Clients are looking for “high flying, high potentials who have been accountants, lawyers and sales directors. In addition to being very good ‘people’ people, they bring commercial and financial understanding of how business operates and the ability to put this in an HR context”.

Thomas adds: “Maybe one of the problems is that too many people have been in HR for too long and haven’t had recent experience of where business is going, of where the workforce is going.

They could do with a little time outside of HR.” Whatever the merits of this particular idea, its message is clear. If HR is to meet its skills challenge, those involved in sourcing and managing HR talent can no longer simply continue doing what they have always done.

138,000

The traditional view of HR as a career destination for those focused on the ‘people agenda’ is changing fast as technology and the need for greater commercial acumen are changing the skills mix required by HR professionals.

40,000

42,000

Number of HR jobs posted

20,000

£36, 812 Average salary

14

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£36,845 Average salary

0 HR managers and directors

HR and industrial relations officers

46,000

60,000 Number of HR jobs posted

HR admin

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Market Indicators

Global Spotlight on South Africa THE AFRICAN CONTINENT’S EMERGING COUNTRIES MAY NOT BE LED BY SOUTH AFRICA IN TERMS OF GDP, BUT ITS RECRUITMENT IS CERTAINLY ONE OF THE MOST DEVELOPED Complicated and complex, Africa is one of the last big emerging markets, encompassing 53 vastly different countries. However, South Africa is the centre of most formal recruitment, PageGroup’s managing director, Sub-Sahara Africa, Nathan Byrne says.

South Africa is home to a huge number of recruitment companies, mostly South African firms but also a small percentage of global recruiters.

Why? Because it is the most advanced, the most ‘first world’ country on the continent, Byrne says.

In terms of Gross Domestic Product (GDP) though, South Africa (2013: £233bn, growth rate: 1.9%*) is second to Nigeria (2013: £347bn, growth rate: 5.4%). Kenya (2013: £37bn, growth rate: 5.7%) is also up and coming, followed by other subSaharan countries, all of which therefore present huge opportunities for recruiters.

The growing GDPs lead to greater demand for infrastructure. “People are going to have to build bridges, they’re going to need to build manufacturing plants… and we’re a partner in that, we’re there to help these companies get talent,” Byrne says.

Beyond engineering, in Mozambique and Tanzania particularly, oil & gas finds are creating a need for highly experienced lawyers — a skillset desperately short, says GRM Search’s South African-based director Dale Verster. Other sectors such as banking & finance and construction are also calling for lawyers to give regulatory advice and to help secure funding, fuelling a demand for lawyers from private equity firms and banks.

Byrne likens recruiting in African countries other then South Africa to the “wild, wild West”.

The South African market is, he continues, more sophisticated with multinational companies demanding a full and professional service. But with lower GDP, power supply problems and governmental challenges, “that’s why we don’t put all our eggs in one basket”, Byrne says. Despite the many opportunities for work, the multitude of red tape and infrastructure issues discourage many foreign-owned recruitment firms from establishing a presence there, he says.

South African recruitment has a unique set of complexities that, as Verster says, might be “frowned upon” in other countries.

Post-apartheid South Africa has seen the introduction of specific legislation to empower black and other ethnic people, requiring companies to employ certain percentages of these workers.

“At the start of the job, we need to be clear whether the client wants a black worker, someone from another ethnic background or whether they just want the right person for the job,” Byrne says.

Verster says the criteria would be “quite a challenge for an external recruiter, from say London or Frankfurt, to operate an agency in South Africa because it’s something so foreign to them”.

Despite the challenges, “if you’re not here, you’re crazy”, Byrne says. “[There are] a lot of challenges but if you know it well and you’ve got your feet firmly bedded down in the country… you’ll reap the rewards.” *Source: World Bank SARAH MARQUET

sarah.marquet@recruiter.co.uk

Legislating to improve South African employment standards South Africa’s Labour Relations Amendment Act, effective 1 January 2015, has had a particular impact on temporary recruiters, according to Confederation of Associations in the Private Employment Sector (CAPES) PR spokeswoman Natalie Stringer.

She said the Act required agencies to make provisions for equal treatment, such as access, after three months’ service, to match the benefits a permanent worker would get; and protection for vulnerable workers (considered by law to be those earning under R206k a year [£11.3k]).

Previously, temps dismissed from an assignment have only had recourse against the recruiter as the employer. The new regulations provide the opportunity for those who have worked on a client’s site longer than three months to take action against the recruiter, the client or both.

For all recruiters, registration and regulation is expected to kick in in April with the implementation of the Employment Services Act. This new piece of legislation will regulate the industry, ensuring formal licensing for operators, enforcement of standards and protection of work-seekers. The country has had problems with scam recruiters targeting vulnerable workers and charging for training and job placements that never transpired.

The charging of work-seekers will be formally outlawed, in line with International Labour Organization (ILO) standards, even though South Africa has not yet formally ratified that standard, which CAPES continues to lobby for.

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Key Facts • South African staffing sector has introduced 5.4m people to work since 2000.

• On average, someone who uses a recruitment agency secures work within 90 days, compared to the 806 days of someone who doesn’t.

• More than 1m people are deployed through a temp agency per day.

• The staffing sector has facilitated more than 35,000 apprenticeships.

• An estimated 3,000 recruitment companies in South Africa directly employ 15,000 to 20,000 people.

Source: Confederation of Associations in the Private Employment Sector (CAPES)

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Interaction

Embrace innovation and BOX change to achieve best practice SOAP

To what extent can the recruitment industry shape the minds of clients when it comes to the appropriate delivery model?

This question is even more prevalent when considering which market and sector are being appraised. Why is it that, when comparing outsourced IT services or company healthcare, there is very little difference in operating practice between one industry and another and yet, when it comes to recruitment, there is as much as 10 years separating the leaders from the followers?

Having sold and implemented a variety of delivery models and solutions to many sectors, I can make several observations. In markets that are progressing up the ‘evolutionary path’, there is a conscious effort to improve on best practice. But in the more archaic sectors where you would expect a desire to catch up, there is little interest in developing procedures or understanding how efficiencies can be driven into business. So should we settle for providing a basic solution or is there an opportunity for the tail to wag the dog?

Currently, I am working in the built environment, where a PSL [preferred supplier list] can often be a ‘novel’ concept. This is as much an opportunity as it is a frustration. At a recent meeting with a group HR director at a £2bn-plus business, there was no knowledge of recruitment spend, with whom and at what margin. Is this an irresponsible attitude or simply recruitment being so low on the list of corporate objectives that other initiatives take priority?

This is not an isolated story, and in the merry-go-round of deciding which model is best, do we as an industry provide what our clients dictate or is there an opportunity for clients to learn from more developed industries and leapfrog several stages of evolution?

The current rise in popularity of in-house recruitment functions is being seen not only in the UK market but also across the Atlantic, where the proportion of companies operating in-house functions

EMMA

MIRRINGTON

JAMES AUSTEN is director at Carbon60

Recruiting recruiters — put into practice what you preach

Kevin Hough, head of resourcing at LV=, and I were recently discussing the recruitment of recruiters for our in-house teams, and our surprise at how candidates for these roles often present themselves. You would think that they would be the experts in showing themselves in the best light.

I subsequently posted a discussion in The FIRM’s discussion forum about this and was inundated with responses.

From a line management perspective, assessing recruiters is challenging, and we actually ask for a lot of capability in a single role: from marketing through to psychology and sales, project management and analytical skills. Furthermore some people find that interviewing recruiters can be a little stressful. One member commented: “Sometimes I can feel them analysing the questions and trying to get behind what I’m asking to give me what I want to hear! I’ve done the same myself.”

Another recruiter commented on the often poor quality of in-house recruitment CVs: “Although we see hundreds [even thousands] every year, we judge them, at times offer advice on how to improve them, but yet I for one know my own CV could be so much better and it doesn’t do me justice. I definitely need to practise what I preach in that respect.”

However, most surprising were views of the in-house recruiters that have been candidates themselves. Candidate experience appears to be low on the list of priorities. One technology

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is even bigger. Looking at the initial cost savings, there are obvious and immediate benefits, but what are the downsides?

Recent research shows that, out of 83,000 internal recruiters in the UK, only 4% specialise in a niche. Cost of hire is, by and large, lower on the surface, but the cost of training, staff turnover and IT systems is rarely factored into the equation — let alone the assumption that recruitment activity will be a steady constant.

The world of recruitment process outsourcing (RPO) is now mature, with third-, fourth- and fifth-generation contracts being awarded in some markets, yet the word ‘outsource’ still causes shudders in many boardrooms. RPO obviously has a place in the market, although, arguably, suitable for only certain sectors. With fewer and fewer new contracts being awarded, and with more being spent on retaining contracts and then supplying at eroding margins, it is not always such an attractive option as it once was.

That leaves the good old external supply chain, the biggest threat to which, arguably, is now internal functions rather than other agencies. Technology and the likes of LinkedIn have revolutionised the market, and yet so many companies’ service propositions have not changed. Their key to success will be understanding the client’s needs and culture while being able to offer something that internal functions cannot.

So what is the solution? Ultimately, lessons can be learned from more evolved markets, and the ability to embrace that change will dictate how quickly a company catches up on best practice. Inevitably, the client can, and will, implement any model depending on the strength of the argument presented. Our clients value the innovation, intelligence and best practice we advise on and implement.

resourcing leader commented: “As a candidate, HR quite often go outside of their own process. The experience you get as a candidate can feel a bit rushed or unclear. This can really affect your perception of an organisation.”

People have withdrawn from lengthy, drawn-out interview processes, and many have not even received acknowledgments of application. One in-house recruiter applied to 14 roles and had one response; another poor recruiter applied to 25 and received nothing!

Yet some organisations do excel: JP Morgan, PepsiCo and BP in particular all have had great feedback for moving quickly, a fast decision-making process and no unnecessary additional interviews.

Fast, efficient and professional — well done all.

Interestingly, applications to agencies for in-house roles were only marginally better treated. One person commented: “I sent six applications off, only to receive one acknowledgement initially, although over the intervening six weeks most of them have gotten in touch to introduce themselves without, it seems, an immediately apparent ulterior motive.”

So it does look a little like ‘cobblers’ shoes’ when it comes to recruiting our own.

Mike Jones, in-house resourcing specialist at Arup, asked: “How can we expect our ‘internal clients’ to do better if we don’t practise what we preach?” I must say I am inclined to agree…

EMMA MIRRINGTON is talent director for Capita’s Write Research and co-

manager of The FIRM (The Forum for In-house Recruitment Managers)

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Interaction

LETTER TO THE

SOUND

BITES

EDITOR

“When does the interview begin?”

Jack Johnson Director, Blu Digital Recruitment

As we now live in a digital age, and particularly as we recruit within this space, social media plays a huge part of the interview process along with the CV. Both CV and social [media] combined give us an idea of someone’s personality and capabilities, as well as an indication of how committed they have been to previous roles and their achievements, well before meeting the candidate. However, to be honest, it is still not a true reflection of somebody’s true capabilities until you meet and have a conversation face-to-face.

Emma Barbour Talent acquisition partner, UK Power Networks

“Because of the nature of the programme that I run it starts at our careers event, as that’s the first contact they [candidates] have with the business. But even submitting an application is part of the interview process. You’re looking for different behaviours and for candidates to do different things at each stage in the process.

Somebody could apply to you with incredible academics, with really good work experience but the language they use in their covering letter or their general attitude as part of the recruitment process doesn’t meet your core values. Then they won’t even get to an interview stage. I have had examples of that where I have met very academic students who also had great work experience but they unfortunately believed this was all they need to secure a role. They didn’t necessarily understand the bigger picture.

David Hunt Managing partner, Hyperion Executive Search

A lot of candidates make the mistake of assuming their interview starts when they enter the interview room. The reality is that a candidate has to be on their mettle from the second they arrive at the potential employer’s business address. At larger companies, I have known examples of security guards on the gate being asked to pass on any information regarding attitude, politeness and general manner.

Receptionists also play a key role in weighing up a candidate and filtering feedback through to the interviewer, which includes if you call in advance for directions or company literature.

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Bonfire of the red tape vanities Paul Farrer makes a good point (‘When red tape would be a good thing’, Soapbox, Recruiter March 2015).

I have been around long enough to remember when I paid £114 to the Department of Employment for the privilege of first being grilled to see if I were a fit and proper person to run a recruitment company, and then regularly and thoroughly inspected to see that I had treated both candidates and clients courteously, fairly and honestly. I like to think I was honest anyway, but if everyone else had to be honest too, it made for a level playing field and a respected and trusted industry.

As often as not, one could rely on a handshake as much as a paper contract. Can you imagine that?

I have always been suspicious of the motives of those who periodically call for a bonfire of red tape, which seems to be a derogatory term for any sort of regulation from those who would prefer none.

The abolition of the licence created a free-for-all, with the result that the standing of recruitment consultants soon declined to a level comparable to that of today’s politicians. Rather quickly, things became so bad that some recruiters got together to form a professional body to try and restore the situation. And yet Mr Farrer calls for a return to regulation. I agree, because self-regulation, with all due respect to the Recruitment & Employment Confederation (REC), is not enough. The very expression ‘self-regulation’ must be the ultimate oxymoron. The REC’s proper function is to set standards and promote the industry, but enforcement has to be from outside.

Now we have come full circle, and our own premier publication is recommending a return to licensing (see DeeDee Doke’s editorial in March’s Recruiter). It would be nice to think such a move would restore faith in our industry, but even if it does, it will take a long time to repair the damage of the past. I wonder how long it will then take before the first call for a bonfire of red tape.

Terry Knight, owner, Knight Selection ONS: Almost 700,000 people on zero-hours contracts in Q4 2014 (25 February) This story simply demonstrates that zero-hours contracts have always had a place in business — the food services industry is a prime example of a sector COMMENT which often requires support staff on an eventby-event basis and this type of contract provides essential business flexibility. In addition, zero-hours contracts work well for seasonal peaks, which require multiple additional staff to be employed for a short timeframe.

Since the ban of exclusive zero-hours contracts, many employers have been urged to switch to minimum hours — thereby offering the employee the security of a set amount of monthly hours, as well as protecting themselves from being left in the lurch if the employee gets a better offer. Given the change in legislation, the employee should in theory have more control over contracts. Individuals will be able to choose the best employer(s) — based on earnings and/or lifestyle requirements — and gain far more control over their earnings.

As with any legislation change, there are still areas which need to be addressed — namely when an employee is faced with many calls from multiple employers at the same time. Working out which employer has the priority in such a situation is difficult as there is no formal, scheduled contract. It is critical given the changes that employers take into account the fact that employees now hold the power when it comes to choosing who gets their time.

As the implications of this change continue to evolve, employers should look to provide benefits and minimum hours to ensure employees are available when they are required, as well as expanding their internal talent pool to ensure continuing business needs are met.

WEB

Neil Lagden, head of Bond Payroll Services

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cracking recruitment software.

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www.itris.co.uk 11/03/2015 16:46

Recruitment Matters Issue 33 April 2015

Employee or worker?

Clarity sought on employment status

The 2-3 Intelligence and REC Talk Temporary work pays, recruiters back in profits and what is the 8th habit

an 4-5Keeping eye on Legal

research that as a result of piecemeal changes to employment laws over a period of time there is significant uncertainty on the part of many employees and workers, and among some employers on the issue of employment status and associated employment rights,” she says.

“Greater clarity on employment status and consideration of a simplified ‘one-stop-shop’ approach to enforcement will help reduce legal ambiguity and support better work and working lives.”

If any changes are recommended, it is expected they will be looked at by Parliament following May’s General Election.

Equa Act lityyment plo

RC

should be referred to the employment business to deal with,” he says.

“Ultimately it will be for an Employment Tribunal to decide whether an employment relationship has been created; however, you must ensure that the contracts in place genuinely and accurately reflect the actual relationship between all parties and that the actual relationship is not operating in such a way as to create a direct relationship between the worker and the client.”

The review has been welcomed by many in the industry. CIPD deputy chief executive Susannah Clements hopes it will offer clarity.

“We know from our

Em eal App unal Trib

H an oli d day Co p m ay m is si on

Alamy

With 2015 an important year for recruitment law, the head of Legal Services explains all

HM

Agencies are being advised to consider the employment status of candidates when it comes to disciplinary matters.

Both the Department for Business, Innovation and Skills (BIS) and the Office of Tax Simplification (OTS) have launched reviews into employment status.

Individuals are divided into employees, workers and the self-employed, each with their own set of rights. The review will look at whether the statuses need updating to fit with current workplace practices.

An issue that continues to arise is who is responsible for disciplining temporary workers – their agency or the organisation they’re working for?

Recruitment & Employment Confederation legal adviser Chris Cuckney says a grey area exists with workers who enjoy similar privileges to employees.

But he says agencies carry responsibility for the most part.

“If a client has any issues or complaints about a temporary worker, they

What’s inside

Conduct

U Regulations b com mprella ani es

6Legal lowdown

Meet the Legal Services team and discover how the Legal Helpline can help REC members

Institute of 7 Recruitment Professionals Francesca Piccolo from Resourcing Group and Sarah Thewlis from Thewlis Graham Associates

and 8 Events Training Sign up for a legal course, check out the Scale Up Podcasts and get REC Audited

www.rec.uk.com RM p1-APRa.indd 23

06/03/2015 14:24

Leading the Industry

the intelligence Nina Mguni, senior researcher at the REC, explains The latest Recruitment & Employment Confederation (REC) JobsOutlook data provides interesting insights into the way that temporary work may evolve, given a number of notable shifts which have surfaced in the last year.

Since January 2014, on average around 45% of employers have stated that they intend to increase their number of temporary workers.

But behind this consistent figure are shifts that suggest the changing way in which employers use temporary workers and, as a corollary, the reasons why people decide to take on temporary work.

We know that skill shortages are becoming more acute, and this is impacting on the type of agency workers employers are looking for. As part of our monthly JobsOutlook survey, employers have been asked to record the main reasons they use temporary workers.

Looking back at January 2013 and January 2014, the main reasons for use of agency worker were ‘covering shortterm staff leave’ and ‘meeting peaks in demand’. However, during the last six months, ‘providing short-term access to key strategic skills’ has become the prominent reason given month-on-month.

In January 2015, three quarters of employers (75%) identified this as the reason they use

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agency workers. This compares to 60% of employers identifying this as the main reason in January 2014.

Employers are offering more money to temporary workers.

This may reflect the increased demand from employers to quickly access sought after skills, but it also corresponds with the upward shift in pay rates in general. Nonetheless, there are greater incentives being offered to temporary workers with particular skill sets.

When looking at the pay rates of temporary workers compared to permanent workers, the REC JobsOutlook data shows there has been a steady increase in the proportion of employers stating that temporary workers earn more than permanent. Last month’s JobsOutlook showed that 36% of employers pay temporary workers more than their permanent counterparts.

This proportion was 19% in March 2014.

We know there are myriad reasons why people work as a temporary worker. Our research report called Flex Appeal shows 12% of people who have worked as a temporary worker did so to earn more money than they would in a permanent role. The same research also shows that of the GB population, 41% would consider working as a temporary worker in the future.

40

■ Upper quartile ■ Median ■ Lower quartile

30

%

20 10 0 -10 -20

Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Dec 13 14

Fig 2: Recruiter net profit margin 12

■ Upper quartile ■ Median ■ Lower quartile

10 8 6 %

Temporary work pays

Fig 1: RIB members NDR growth

4 2 0 -2 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov 13 14

Recruiters in profit For the last few months we have talked about the strong revenue growth that recruiters have been achieving; this month we are turning our focus to profits.

The good news is that RIB member median net disposable revenue (NDR) in the three months to December was up over 14% on a year ago, reflecting a steady acceleration in NDR growth since spring 2013.

Indeed, more than 25% of RIB members are seeing NDR 30% higher than a year ago, a trend that has been sustained for most of 2014.

Sadly, a quarter of RIB members are seeing NDR lower than a year ago, a disappointing figure given the recovering performance we have seen in the employment market, and reflecting that a quarter of RIB members have seen no growth in revenues over the last 12 months.

We would, however, caution that however strong NDR growth has been, its growth of 14% is lagging turnover growth of 18% in the three months in September, reflecting a fall in profit margins.

Net profit margins have been declining throughout 2014, with median margin falling from over 4% at the beginning of the year to around 3% last autumn. Indeed a quarter of RIB recruiters are seeing losses at the net profit level; we hope that 2015 sees a more positive environment for all recruiters.

• Chris Ansell is chief financial officer at Recruitment Industry Benchmarking (RIB). The RIB Index provides bespoke confidential reports on industry trends. See www.ribindex.com; info@ribindex. com: 020 8544 9807. The RIB is a strategic partner of the REC.

www.rec.uk.com 06/03/2015 14:25

Leading the Industry

The 8th Habit Tom Hadley, director of policy and professional services at the REC

The View

Last month saw the publication of our ‘7 Secrets of a successful recruitment entrepreneur’ report – the latest of our ‘7 Secrets’ series.

Within this veritable feast of first-hand insight into what drives success in our industry, a number of themes raised by successful business leaders can be linked to developments in the public policy and legal arena. There is also an interesting link back to the wisdom of the late Stephen R Covey – author of the original bestseller, The 7 Habits of Highly Effective People.

Key areas flagged by recruitment entrepreneurs in our report include: be different, invest in the right building blocks and be bold. But how on earth do these topics link back to public policy, compliance and legal awareness – surely complete anathema to any self-respecting entrepreneur?

Here’s how: • Being ahead of the game in terms of legal and policy developments is an increasingly important source of differentiation for high-growth recruitment businesses.

• Investing in infrastructure includes developing effective compliance mechanisms that are pivotal to sustainable growth and reputation.

• Being bold means being aware of policy developments that can create new market opportunities on both a domestic and international front.

On this last point, a great example is the number of UK recruitment businesses seeking overseas opportunities – often on the back of favourable regulatory changes – or identifying potential new sectors.

Being bold is also about being prepared to speak out on behalf of the industry as a whole in a sometimes hostile political and media environment.

This brings us back to the teachings of Dr Covey, who followed his 7 Habits opus with a 2004 sequel: The 8th Habit.

And what was this addendum? The 8th habit is: ‘Find your voice and inspire others to find theirs’. Covey talks about finding your ‘unique personal significance’ and the importance of inspiring others. This is also a recurring theme in our report on recruitment entrepreneurs.

Essentially it is about building a legacy, being selfless and being prepared to look beyond short-term business priorities. We see this every day in our industry, with recruitment leaders helping to make a difference on key social and labour market challenges such as youth unemployment, diversity and inclusion, and social mobility.

The 8th habit is also about helping to nurture the next generation of leaders. Our own ‘7 Secrets’ report includes a flurry of testimonials on the importance of surrounding yourself with good people, succession planning and giving people the opportunity to show what they can do. The next generation of recruitment leaders are in good hands and will be well briefed on the importance of keeping a close eye on external variables like public policy and legal developments.

In the run up to the election, debate around the country’s economic performance is going to become more and more heated. And our flexible labour market is going to be at the heart of that debate. When debates get heated and the stakes are high, truth and accuracy can sometimes become victims to rhetoric and point scoring.

Already negative stories have appeared in the media, criticising the use of agency workers. I’m often called upon to speak up on behalf of our industry, and I find myself repeatedly having to correct misconceptions.

For example, the idea that the Swedish Derogation (or payment between assignments) is a ‘loophole’, or that all the new jobs being created are temporary – both of these statements are factually wrong.

Temporary work is a vital element of the labour market and a mainstream part of the economy; more than one in three people in the UK have worked as a contractor, freelancer or agency worker at some point in their career.

To get this message across to the politicians in advance of the general election we need your help. We want as many members as possible to take our Manifesto for Jobs and talk to prospective MPs. We need to show politicians that people choose to take on agency work. Our research report ‘Flex appeal’ showed that people decide to be temps or freelance because it gives them the ability to fit work around other responsibilities, like children, caring responsibilities or studying. They value the opportunity to get work quickly, and to pick up skills and experience that they wouldn’t be able to get elsewhere.

We expect the political rhetoric to get worse before it gets better. We need to be clear and challenge the assumptions and myths. The recruitment industry is highly regulated, and the additional compliance process that agencies have to follow in order to be a member of the REC is more robust than any other professional body or trade body in the UK. We take compliance extremely seriously; last year we refused membership to 193 agencies that failed to meet our code of professional conduct.

I’ve published a blog post expanding on these issues, which you can view at: www.rec.uk.com/agencywork.

Please help us highlight the great work our industry does helping individuals get jobs and businesses get the people they need. We make the UK jobs market work.

• You can follow Tom on Twitter @hadleyscomment

• For recruitment industry insight and advice follow @kevingreenrec

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The Big Talking Point

Law in 2015

Equa Act lityyment plo

RC HM

Eye on Legal: Recruitment

Em eal App unal Trib

2015 is shaping up to be an important year for recruitment law, and the Legal Services team has broken down some of the big issues for recruiters. Recruitment Matters editor Michael Oliver spoke with the REC’s head of Legal Services Lewina Farrell about what’s on the team’s radar this year The Conduct Regulations and Advertising in EEA Countries The Conduct of Employment Agencies and Employment Business Regulations 2003 – better known as the Conduct Regulations – were tightened in early January. They now include a provision prohibiting agencies and businesses from advertising vacancies exclusively in other European Economic Area (EEA) countries.

“The government wants to create a level playing field for workers by requiring employment agencies and employment businesses to ensure that all job vacancies are advertised in Great Britain and in English,” according to a government release.

This might sound familiar, with recruiters thinking that a law like this already exists.

It does.

“Agencies and employment businesses would have already been prevented

from recruiting exclusively overseas under the Equality Act, which prohibits discriminating against any person based on race or nationality – including UK citizens,” explains Farrell.

“As far as we’re concerned, this amendment wasn’t required.”

A solicitor at REC business partner Brabners, Simon Bloch, agrees.

“The fact that there were only 31 respondents to the government’s consultation on the matter, the majority of which were unable to provide evidence of any practices of advertising exclusively in other EEA countries, tells a story as to how much of an impact this will really have,” he says.

The problem isn’t with recruiters, but with businesses approaching people directly and bringing them over to the UK. Hiring foreign nationals isn’t uncommon, and the visa system has a rigorous set of checks. It seems much less about tackling

HMRC is very clear they want this information and they’re not interested in all the commercial arrangements between the parties, and they’re not particularly concerned with the data protection issues either Lewina Farrell 4 Recruitment Matters April 2015

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wayward agencies and more about appearances. Farrell agrees it’s too easy to point the finger at recruitment agencies.

“We’re up there with estate agents and lawyers,” she says. “It’s not dealing with the bigger issue.”

At the time of writing, the REC is also waiting for new Conduct Regulations Farrell hopes will cover the rest of the recruitment supply chain.

New reporting requirements for recruiters In April 2014, changes were made to the Income Tax (Earnings and Pensions) Act 2003, which increased the potential liability for agencies supplying temporary workers who work through an intermediary.

Things will change again on 6 April 2015, when new reporting requirements come into effect.

HMRC will want a quarterly report on all workers supplied to an end client, irrespective of who pays the individual.

They want to know who that worker is, what type of entity they’re working through, and what the intermediary has been paid by the employment business.

HMRC will then use that to check all of those entities have been paying the correct tax and National Insurance.

www.rec.uk.com 06/03/2015 14:26

H an olid d C ay om pa m y i ss io n

Conduct UmRegulations

combrel pan la ies

Lewina Farrell says the impact will be huge: “This is a massive issue for our members. They already report on any temps on their own payroll. But they’re now going to have to report on individuals working through any intermediary including umbrella companies, CIS intermediaries, personal service companies and partnerships.”

The reporting obligation now shifts to those who deal with workers at the end of the supply chain. This is where things could get tricky.

“The reporting party is the business with the contract with the end user client. So where our members have that contract they will have the reporting obligation, but if there’s a vendor in place, it would be the vendor that has the obligation, which means it has to get the information from further down the supply chain,” Farrell says.

It can’t be reasonable to expect businesses to be exposed to open-ended liabilities when they’ve complied with the legislation Lewina Farrell The logistics of supplying that level of information is by no means simple either. Vendors and agencies will need specialised software for compiling the information, for which HMRC has only recently issued requirements.

But it also runs into issues of data protection and access, with vendors being asked to produce information they otherwise don’t have access to.

“HMRC is very clear they want this information and they’re not interested in all the commercial arrangements between the parties, and they’re not particularly concerned with the data protection issues either,” Farrell explains.

“There are some sectors where our members will do a lot of PAYE, but over the years there has been a growth of intermediaries across all sectors. But the changes introduced in 2014 have already caused issues for our members.

“For example, some contractors are reluctant to work PAYE, in the construction sector, for instance. Yet all of the liability rests with the employment business and only with the client and the individual worker or their intermediary in circumstances where fraudulent documents have been provided.”

Farrell says the best way for employment businesses’ vendors to approach contractors for the information is to be upfront about the new legal requirements.

She says that contractors and intermediaries who do not provide the required information may find that they lose contracts because the reporting party cannot take the risk of not complying with the new obligations.

The Legal Services team has already produced a number of guides and a webinar about the changes all of which are available on the REC website.

Holiday pay and commission In November 2014 the Employment Appeal Tribunal ruled that overtime payments should be considered when calculating a worker’s holiday pay. The big question facing the tribunal this year is whether an employee’s commission should also be considered.

While the ruling is still pending, the REC Legal Services team is already considering the implications of a decision in favour of including commission in holiday pay.

“It can’t be reasonable to expect businesses to be exposed to open-ended liabilities when they’ve complied with the legislation,” says Farrell.

“Bonuses and commission tend to be paid either monthly or quarterly, but would consultants try tying their holiday in with the dates of commission? That might be administratively difficult for everybody, but it’s possible. But whether anyone would is another matter.”

Read more The fact that there were only 31 respondents to the government’s consultation on the matter, the majority of which were unable to provide evidence of any practices of advertising exclusively in other EEA countries, tells a story as to how much of an impact this will really have

The REC’s Legal Services team frequently updates members on the latest recruitment law changes.

Plus the dedicated Legal Helpline is operated by a team of legal advisors who understand recruitment law and can advise on any issue that may arise. For the latest, visit www.rec. uk.com/legal

Simon Bloch

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06/03/2015 14:26

Legal Update

The Legal Helpline forms a part of the REC’s legal offering. Unlimited access to the legal service is a core element of REC corporate membership in 2015.

In 2014, the Legal Helpline responded to 16,500 queries, a 32% increase on 2013.

Recruitment Matters meets the advisers who help make it happen Charlotte Allery Legal qualifications: • Bachelor of Laws (LLB) Hons, University of Southampton • Legal Practice Course, College of Law (Guildford) • Currently completing a Master of Laws (LLM) in International Legal Practice, University of Law Favourite areas of law: • Family friendly rights • The Equality Act 2010 • The Agency Workers Regulations 2010 Funniest question asked: “Can I pay my workers in frozen chicken?”

Chris Cuckney Legal qualifications: • Law LLB, University of Kent • Legal Practice Course, College of Law, • LLM, King’s College London (specialising in Intellectual Property) Favourite areas of law: • General Contract Law queries • TUPE (TUPE is the recognised abbreviation for the Transfer of Undertakings [Protection of Employment] Regulations 2006 and employee dismissals) • Equality Act 2010

REC’s Legal Services team

Abena Darko Legal Qualifications: • Law LLB, University of Essex • Legal Practice Course, College of Law Practice areas on the helpline I find the most interesting: • General contract law queries, employee dismissals and restrictive covenants • Agency Workers Regulations 2010 • Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) • Tax Area I’m not particularly a fan of: Statutory maternity pay and leave

Ryan Huggett Legal qualifications: • Law LLB: First Class Honours • Legal Practice Course Favourite areas of law: • Tax: CIS, ITEPA, IR35, umbrella companies, travel and subsistence • Contract law: Introduction fees, restrictive covenants, general contractual issues • Employment law: TUPE, dismissals and employment rights • Commercial law: The Conduct of Employment Agencies and Employment Business Regulations 2003, Agency Workers Regulations 2010 and Equality Act 2010 • Data protection

The rules and regulations that govern the recruitment industry are constantly evolving. At the same time, employers look to recruiters to be highly informed about current trends and issues.

The REC’s legal resources are in place to meet this need. In addition to our Legal Helpline, our members have access to in-depth online guidance and updates. Our team is dedicated to informing members about the latest development in legislation via our legal news pages, and our Legal Guide provides easy-tonavigate information on over 50 topics relating to employment and commercial law.

Legal Services is responsible for compiling and publishing Legal bulletin, which is sent out six times every year, and has just launched Legal bitesize, which is six smaller versions to guide members in the intervening months.

Where the Legal Services team can’t help members, they are able to direct them to the REC’s Legal Partners.

Our resources also include a library of model documents and policies, a Holiday Pay Calculator, and factsheets to help you get to grips with some of the more complicated or new aspects of relevant law. These tools are designed to help our members provide an expert service to their clients and to promote best practice in all aspects of recruitment.

Access the REC’s legal resources at: www.rec.uk.com/legal-resources

Business development: Bullhorn Bullhorn is the global leader in customer relationship management software for the staffing and recruiting industries.

Since pioneering cloud-based recruitment software in 1999, Bullhorn has grown into the world’s largest provider of customer and candidate relationship management software for the staffing industry, handling one billion transactions each week and over $100bn (£65.7bn) in client revenue to date.

It recently reached 10,000 UK users and is rapidly expanding its customer base across the globe.

Bullhorn creates cloud-based software solutions that help recruiters put the world to work. As the global market leader in staffing and recruiting software, our innovations power the

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operations of fast-growing start-ups up through the world’s largest staffing brands.

Headquartered in Boston, with offices in St. Louis, Richmond, Vancouver, London and Sydney, Bullhorn provides a full suite of recruitment software including an applicant tracking system, customer relationship management (CRM) system, back office solution, VMS integration, and social recruiting product.

The company has more than 10,000 clients representing nearly 350,000 users across 150 countries.

Bullhorn is offering REC members 26 months for the price of 24 – two months free.

For more information please contact Ayla Tapper by email: atapper@bullhorn.com or by telephone: 0203 587 7313

www.rec.uk.com 06/03/2015 14:27

Inspiration

Behind the scenes at the Institute of Recruitment Professionals Francesca Piccolo won Recruiter of the Year at the 2014 IRP Awards

Congratulations on your win, how was 2014 for you?

Thank you – it was definitely a highlight of what was a remarkable year.

I was promoted, and now run the London Maintenance Division of Resourcing Group, leading a team of 14 consultants.

You’ve worked for Resourcing Group for seven years – what sectors do you cover?

Resourcing Group is a specialist recruiter operating in three core markets: construction and property, building maintenance and the public sector.

The maintenance division – which I run – is the market leader in the supply of talent to maintenance contractors working in the public sector.

What are some of the biggest challenges in recruiting for your sector?

Candidate supply. There are real shortages across the maintenance sector, this is amplified by specific skills and experience our candidates need to be able to effectively work in a social housing environment, with many involving work in tenanted properties.

What is the biggest challenge facing the recruitment industry in 2015?

As the economy strengthens, recruiters will need to increase focus and knowledge to meet client and candidate expectations. Recruiters will need to understand their markets inside and out from the latest technology developments to understanding individual client needs.

By taking the time to understand the motivations and challenges of everyone involved in the process this will assist in the creation of long-term relationships.

What I know Sarah Thewlis is the managing director of Thewlis Graham Associates Good recruitment comes in threes It’s about good processes, good diagnostic skills and good listening skills. What holds it all together is a certain amount of magic. In any one search, you’re going to be dealing with a number of people, so you’ve got to have systems that work. If you don’t manage that, you’ll fall by the wayside. The magic is about getting all those aspects and seeing what a good fit is for both clients and candidates.

Go deep When speaking to candidates, you must get underneath their CV and see what they can bring to the party in all circumstances. It’s always worth seeing where things have gone well and not so well for them. How people cope in adversity may not be the same as how people behave when things are going very well.

Three important tools Integrity, honesty and clarity. Integrity is so important. I came into this industry having had a background as a CEO for 14 years and working as a customer of recruiting, where there was a lot of pretty poor practice out there. Being straight with the candidate and telling them if they’re right or not right for the job and building up that trust is vital. You’ve got to be honest about that.

What advice would you give your younger self on her first day?

Trust your instincts. Sure, there will be knockbacks along the way but don’t be discouraged, think about the long term and it will all work out.

Also don’t be afraid to pick up the phone – no call will ever be that bad!

Clue clients in Something recruiters are going to have to explain to clients is they can’t sit around. Clients take a long time to make up their own minds about hiring someone, forcing people to jump through more and more hoops. It’s about building a relationship between the candidates and clients. You can’t keep going on first dates forever, you have to make a decision and start building a relationship.

What does 2015 hold?

It’s really only just started and job volumes are up and the confidence we saw return to the market seems to be continuing to grow. For Resourcing Group it will be a year of expansion, with two new offices already in the planning and there will be an expansion of our core offering.

Your brand is important One thing recruiters are looking more at is social media and the whole engagement side of it. Browsing LinkedIn is just one way of doing it, but partly it’s about putting your brand out.

Candidates are buying into your firm and deciding whether to use you as a passport for their next career move.

To keep up to date with everything the Institute of Recruitment Professionals is doing, please visit www.rec-irp.uk.com

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Events and training

Know the letter of the law with an RBA legal course The Recruitment & Employment Confederation is committed to ensuring all its members are compliant with employment and recruitment law.

We run four legal training courses through our Recruitment Business Academy (RBA).

For more information and to book a course, visit www.rec.uk.com/rba Recruitment Law: Understanding the Essentials This programme covers the essential legislation that everyone working in recruitment should be aware of including: Employment Agencies Act, 2003 Conduct Regulations, contractual law, candidate and client terms, data protection, health and safety, discrimination and AWR. It also covers the key insurances you need to protect your business and legislation surrounding direct marketing.

Recruitment Law: Managing PAYE Temporary Workers This programme will enable you to differentiate between employees, workers and the genuinely self-employed.

Covering the statutory rights involved with payment and benefits for both workers and employees. In addition the programme also covers family friendly and working time legal rights, the principles of employing or engaging young workers and the implications of the Agency Worker Regulations.

Recruitment Law: Supplying Limited Company Contractors This programme explains the different types of limited company contractor and the implications for contractors, the employment business and hirers, including the different types of contract terms involved in the supply of limited company contractors to hirers. This programme also discusses the practical element of IR35 and the tax implications of dealing with different types of limited company including Managed Service Companies, the obligations under the Conduct Regulations for opted out limited company contractors and how the Agency Worker Regulations apply to limited company contractors.

Employment Law: Manage your Employees and Protect Your Business This programme will help you understand the importance of having comprehensive, clear and consistent policies – such as staff handbook, social media and remuneration – in place to help you protect your business, implement and communicate them to all stakeholders. It also takes you through all of the key employment legislation you need to be aware of, from employment contracts through to termination and dismissal so you can successfully manage performance, absence and behaviour within a legal context.

Download the new Legal bitesize Following the phenomenal popularity of the Legal bulletin, the REC has launched a new by-monthly legal publication: Legal bitesize.

This two-page newsletter takes a look at an important legal issue in the recruitment industry.

Like the larger Legal bulletin, Legal bitesize is always sharp, on point and up to date.

It’s available free for all REC members.

Visit www.rec.uk.com/bitesize to download

Subscribe to the new Scale Up Podcast in iTunes As part of the Scale Up campaign, the REC has launched its first podcast series.

The Scale Up Podcasts see REC chief executive Kevin Green talk to some of the movers and shakers in the recruitment industry.

Episode one features an in-depth conversation with Phaidon International chief executive Adam Buck. Over the last 10 years, Adam has taken Phaidon from a start up in his bedroom to a multi-national juggernaut.

The podcasts will feature insights from some of the most successful entrepreneurs working in the industry today.

All episodes are available to download from the REC website at rec.uk.com/ scaleuppodcasts, or subscribe on iTunes.

Be among the best with REC Audited REC Audited is the gold standard in recruitment practice.

The audit now goes much further beyond just compliance, requiring agencies to demonstrate that they operate best practice in areas such as customer service, staff development, diversity and client management.

The process starts with an online

diagnostic and is followed by a tailored onsite audit by one of our experts, who will not just check your documentation, but will talk to you and your staff about your processes and systems, providing practical support, to ensure you truly are a best practice recruiter.

The REC also offers an audited package for agencies operating in the Education Sector. REC Audited Education ensures

Recruitment Matters 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

8 Recruitment Matters April 2015

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safeguarding and that agencies are undertaking all the relevant checks when recruiting teachers.

REC Audited Education will enable schools and education providers to be confident that they are using an accredited supplier, who puts standards at the centre of their business.

To find out more, visit rec.uk.com/audited

Membership Department: Membership: 020 7009 2100. Customer Services: 020 7009 2100 Publishers: Redactive Publishing Ltd, 17 Britton Street, London EC1M 5TP. Tel: 020 7880 6200. www.redactive.co.uk Publisher: Aaron Nicholls aaron.nicholls@redactive.co.uk Tel: 020 7880 8547 Editorial: Editor Michael Oliver michael.oliver@redactive.co.uk Tel: 020 7009 2173. Production Editor: Vanessa Townsend Production: Production Executive: Rachel Young. rachel.young@redactive.co.uk Tel: 020 7880 6209 Printing: Printed by Woodford Litho © 2015 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 06/03/2015 14:27

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NEW AGENCY PORTAL This new facility enables digital management of contractor ŝŶĨŽƌŵĂƟŽŶ ĂŶĚ ĂĐĐĞƐƐ ƚŽ Ă ǀĂƌŝĞƚLJ ŽĨ ĂĚĚŝƟŽŶĂů ƌĞƐŽƵƌĐĞƐ ƌĞůĂƟŶŐ ƚŽ ƚŚĞŝƌ ƌĞůĂƟŽŶƐŚŝƉ ǁŝƚŚ ĂŐĞŶĐŝĞƐ͕ ŝŶĐůƵĚŝŶŐ͗ • ZĞƉŽƌƚƐ ĨŽƌŵĂƩĞĚ ƚŽ ,D ZĞǀĞŶƵĞ Θ ƵƐƚŽŵƐ ŐƵŝĚĞůŝŶĞƐ • sŝĞǁ LJŽƵƌ ůŝƐƚ ŽĨ ĐŽŶƚƌĂĐƚŽƌƐ ĂŶĚ ĂƐƐŽĐŝĂƚĞĚ ŝŶĨŽƌŵĂƟŽŶ • ůů LJŽƵƌ ĐŽŶƚƌĂĐƚƐ ĂŶĚ ƐĐŚĞĚƵůĞƐ ƐƚŽƌĞĚ ƐĞĐƵƌĞůLJ ŽŶůŝŶĞ • ŽǁŶůŽĂĚ ďƌŽĐŚƵƌĞƐ͕ ůĞĂŇĞƚƐ ĂŶĚ ŽƚŚĞƌ ƌĞƐŽƵƌĐĞƐ • /ŶƐƚĂŶƚůLJ ŽƌĚĞƌ ŽƵƌ ƌĂŶŐĞ ŽĨ ĨƌĞĞ ƉƌŽŵŽƟŽŶĂů ŐŽŽĚƐ &Žƌ Ă ĨƌĞĞ ŝŶƚĞƌĂĐƟǀĞ ĚĞŵŽŶƐƚƌĂƟŽŶ ƉůĞĂƐĞ ĐŽŶƚĂĐƚ ĚĂŵ Jordan or Lewis Scane today.

Adam Jordan ϬϳϴϴϮ ϲϲϮϵϬϴ ĂĚĂŵ͘ũŽƌĚĂŶΛƌĂĐƐŐƌŽƵƉ͘ĐŽŵ

Head Office RACS Group House, Three Horseshoes Walk Warminster, Wiltshire. BA12 9BT

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Lewis Scane

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0845 604 0571 info@racsgroup.com racsgroup.com

11/03/2015 16:47

Insight

Making the move inside WHAT IS THE MARKETPLACE LIKE FOR IN-HOUSE RECRUITERS? A REPORT BY ASPEN IN-HOUSE REVEALS THE HEADLINES BEHIND THE MOVE FROM AGENCY TO IN-HOUSE RECRUITMENT

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Insight

The latest research by in-house recruitment specialist Aspen In-house monitors the careers of more than 850 recruitment consultants and executive search professionals who in the last three years or so have indicated that they wanted to move in-house.

Data gathering The data included is based on those individuals using information publicly available about them and more specific data held by Aspen in a nonattributable format.

This data is presented to help inform the decision making of those recruitment professionals considering a move in-house, and helps Aspen give accurate advice to that group, as well as informing hiring organisations of their potential candidate pool.

Despite the focus of this report, most of Aspen’s workload (over 70% of the roles we work on) have a requirement for those with in-house experience as opposed to those coming from agency. This reflects a marketplace that puts a high premium on acquired in-house experience in a sector that is candidate-rich for agency profiles and far less so for deliveryfocused in-house recruiters.

Our team works across sectors, geographical boundaries and role types within talent acquisition. The common part to all our clients’ goals is improving their ability to directly hire talent in their given markets. This is paramount when hiring a sourcer or headhunter to identify and engage talent or finding leaders to set the strategy. Aspen has historically provided talent acquisition professionals on a permanent basis but has increasingly seen demand grow for contractors and FTC (fixed-term contract) staff in recent years and has developed the capability to deliver that product to market.

19.4%

of those seeking to move in-house have managed to do so

11%

succeeded in moving into a management role

55%

of those moving in-house go into a straight recruiter role

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The headlines • Only 19.4% of those seeking to move in-house have managed to do so • A further 8.7% have found an onsite role with an RPO (recruitment process outsourcing) firm • 13.5% of the group have left the recruitment industry and associated markets altogether • 2.7% of this group have gone into HR positions • Typically at early career stage into very junior administrator or co-ordinator positions • 41% remain within recruitment consultancy roles • 14.7% work in executive search • As in-house recruitment continues to develop as a direct sourcing and business engagement model from its roots in a more administrative function, the average experience level of recruiters is at a level that would demonstrate those moving in-house or into RPO are established recruiters.

• The average agency career before moving in-house is six years and five months, while those moving into RPO typically had six years’ agency experience • While those leaving the industry altogether typically do so earlier at around four-and-ahalf years’ agency experience

In-house routes • Typically they become an operational recruiter; 55% of those moving in-house go into a straight recruiter role • 11% go into a dedicated sourcing position • Campus recruiting as a route is dying out — under 1% crossed to this market • Management roles are typically harder to win in-house; only 11% found a management role, and many of these were standalone positions in smaller organisations where the client has hired a preferred supplier, and therefore a known quantity, straight in • 8% have moved into roles focused on delivering executive recruitment/executive search as a specialism

Similarly for RPO • A more operational environment leads to more roles clearly focused on transactional hiring; 69% go into a recruiter role • A further 9% go into a sourcing or resourcing role • 8% move into an account management position • RPO as opposed to in-house roles also seems to create more overt roles for ‘vendor management’ of agency suppliers with a small group going into these roles (under 5% but not recognised at all from the in-house moves)

Does gender matter?

There’s a certain ‘old school’ opinion that we often hear, which says in-house recruiting is for ‘HR girls’. It may not come as a huge shock that we think such statements are pretty stupid and reveal a lot more about the people who say it than the people they allegedly talk about.

However, there is a perception that in-house recruitment is a more female-balanced role. So what did we find?

We discovered two pieces of information that would, to a certain extent, dispel the myth and also demonstrate that selection processes are fair and reflective of their candidate communities.

• Firstly there’s a fairly even balance to the group we looked at: • 55.1% of those seeking an in-house move are male • 44.9% are female • Intriguingly, our debate would support that overall hiring processes are robust as the stats in each sector reflect our overall pool: • Of those moving in-house 56.5% are male, 43.5% are female • Of those joining an RPO 55.5% are male, 44.5% are female.

ANDREW MOUNTNEY IS FOUNDER OF ASPEN, A NICHE RECRUITMENT CONSULTANCY SUPPLYING IN-HOUSE RECRUITMENT TALENT TO IN-HOUSE RECRUITING TEAMS AND RECRUITMENT PROCESS OUTSOURCING ORGANISATIONS AROUND THE WORLD

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Profile

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Charlotte Harris COLIN COTTELL SPOKE WITH THE GLOBAL HUMAN RESOURCES DIRECTOR AT FLEXIBLE WORKPLACE PROVIDER REGUS ABOUT THE OVERHAUL OF THE COMPANY’S RECRUITMENT STRUCTURE

Imagine an organisation that goes from having 50 or 60 recruiters to more than 2,000 within the space of just over a year. It seems an unlikely scenario. But for Charlotte Harris, global HR director at flexible workplace provider Regus, it is very real.

PHOTOGRAPHY: AKIN FALOPE

PHILOSOPHY OF RECRUITMENT “A lot of people see recruitment as a functional service. It’s not; it’s far more than that”

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The exponential growth in the number of recruiters at Regus was just one element in a two-year period of change that saw a dramatic and fundamental overhaul of the company’s ‘field recruitment’ — meaning recruitment of customer service staff working in Regus’s network of centres, rather than senior executives. “I don’t think we anticipated the level of change that this would cause, but that is Regus’s way — we did it so quickly that a lot of people didn’t get a chance to catch their breath,” says Harris, speaking to Recruiter at the company’s modernistic Bruton Street business centre in London’s Mayfair.

Regus is a company in a hurry. In the last couple of years it has opened in roughly 450 new locations around the world, bringing the number of employees to more than 10,000 in 105 countries. The firm expects to hire 3,000 new staff this year. And it is clearly a company in which Harris believes she and her team have a vital role to play. “The work that I do now is really enabling that growth, and that is rewarding… you can really influence and change what is happening. I am hooked on Regus — simple as that,” she says.

Harris is clearly in her element at Regus as she enthuses about the company and recruitment’s

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PHOTOGRAPHY: MANUEL VASQUEZ

pivotal role in it. But the picture she paints of Regus’s recruitment going back just a couple of years is a very different one. “It was slow, it was impractical, and disjointed between HR and the field. The field was saying ‘I can’t grow my business because HR aren’t recruiting people fast enough’,” she says.

The company’s separate recruitment teams in each of Regus’s geographies — the Americas, the UK, EMEA [Europe, Middle East & Africa] and Asia Pacific — “were quite heavy in terms of manpower, admin and spend”, she continues. “We were asking a junior recruiter in Hong Kong to recruit local people in Brisbane. It was just ridiculous, so quite clearly we needed to do something drastic.

“It wasn’t HR or recruitment’s fault. It was just they were under-resourced, and didn’t really have the skills or the accountability to do what they needed to do.

So we tore it up.”

If that sounds overdramatic, Regus’s rapid

SECRET OF SUCCESS “Luck, hard work and having fantastic people around me”

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expansion and plans for further growth suggest that this is not a company that shies away from change.

Indeed, the subsequent transformation of recruitment within the company was conceived from the very top of the organisation by Regus chief executive and founder Mark Dixon.

The changes have been twofold, says Harris.

“We have created more regions, but put in more accountability and responsibility at the country level.

At the same time, we looked to standardise and streamline everything that we do centrally to so that we can scale for growth.

“It was the way he [Dixon] wanted the business to go,” Harris continues, “to localise and decentralise that process, so instead of having core HR teams running recruitment, he wanted everybody on the ground to basically own it themselves.”

The result is that rather than HR being responsible for recruitment as before, area directors now have the responsibility to hire general managers, while general managers, who manage Regus’s centres, in turn recruit customer service representatives.

However dramatic these changes are, she says there was always a realisation that they wouldn’t work on their own. “We quite clearly couldn’t just say ‘it is your job to do this now’… It needed to be a lot better than that because we needed to embed it and make it part of what we do.”

With recruitment only a part of hiring managers’ busy day jobs, “we needed to make it as quick and as easy as possible. What was needed was a practical solution they could follow”.

The introduction of what Regus calls ‘recruitment champions’ has been pivotal. Chosen by Regus’s area directors, recruitment champions do not actually recruit themselves, but play a central part in the new decentralised system. Following a two-day workshop covering all the basics of recruitment at Regus, and ‘train the trainer’ sessions, their first responsibility is to train Regus’s hiring managers, says Harris.

But that’s not all, she explains. “They also act as a conduit for us into the business, taking any issues and challenges that recruiters are having locally and feeding them through to their local HR team.

“Quite clearly my team can’t handle 2,500 people [hiring managers] ringing them up saying ‘I can’t log in … I can’t post this job, I haven’t got any candidates, what do I ask at interview’… all those questions that a hiring manager would ask because recruitment is not their day job. It is about having a network of people on the ground that live and breathe recruitment as part of their job, and an escalation point to us.”

CV: CHARLOTTE HARRIS Global HR director, Regus

2014-present Global head of recruitment, Regus

2012-14 Various HR/ resourcing contract assignments, JC Consulting (her own limited company)

2007-12 Executive search consultant, Imprint Search & Selection

March 2007December 2007 Various recruitment agency roles (included periods at Hays, Robert Half and Adecco)

1989-2007

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11/03/2015 16:54

PHOTOGRAPHY: AKIN FALOPE

Profile

Harris says a good word to describe recruitment champions is ‘facilitators’, giving an example of how they get hiring managers working in offices that are geographically close to interview together, rather than operating in silos. “That is how it works now,” she says.

The aim is to have as many recruitment champions as possible, says Harris, with area directors, for example in London, New York or Singapore, where there are several Regus centres, encouraged “to have as many as they want”.

Once appointed, Harris emphasises that recruitment champions are not simply left alone to sink or swim. Each of Regus’s countries and regions have weekly conference calls, where they can discuss issues and challenges.

The wholesale transformation of recruitment at Regus doesn’t end there, however. With hiring managers in busy day jobs now replacing recruitment specialists, came the recognition that the recruitment process needed to be made as simple and easy as possible. “We clearly needed to automate,” says Harris.

To avoid local centres receiving as many as 500 to 600 applications for just one or two jobs, a new assessment process, which identifies the top 50-60% of applicants was introduced. In addition, working with international employment solutions and retention firm Kenexa, hiring managers now have

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REGUS Founded 1989 Provides a range of flexible workplace solutions, including business lounges, video communication suites and individual workpods More than 10,000 staff in 220 locations across 105 countries Just under 2m customers Sales of £1.53bn in 2013

a recruitment tool that is “intuitive and really easy to use… 13 clicks to hire somebody”, says Harris proudly. This is combined with a job description and advertisement that “is completely locked down”.

Harris, who joined Regus in 2012 after a career which spanned interim, search and agency recruitment, is clearly at home at Regus, and relishes the pace of change. “I can come up with ideas,” she says, and a decision is very quickly arrived at “whether [those ideas are] approved or not approved”, she adds.

However, she accepts that the dramatic changes introduced to recruitment at Regus over such a short period, including implementation in 13 languages, has not been without its challenges. “Crikey, how long have you got?!” she says, when asked about the problems encountered.

Harris says the biggest challenge was getting the HR community to adopt the changes. “It is a massive change of behaviour for them,” she acknowledges.

“Instead of them physically doing the recruitment, they were changing to become supporters and enablers.” Further, while Regus’s HR team of around 100 retains a local or regional presence in each of Regus’s territories, the changes have meant some HR staff leaving the business.

A one-size-fits-all solution across the whole company has also proved problematical, particularly in parts of Asia Pacific. For example, the new situational judgement test, which takes candidates 10 to 15 minutes to complete, has proved unsuitable for China, and the process is being redesigned. “They call it ‘the three-second principle’,” she laughs. “If you can’t allow a candidate to apply for a job within three seconds you can forget it. Things just work differently over there… so we are working our way through Asia-Pac at this moment.”

A further difficulty is that some country managers have baulked at hiring being devolved locally, taking the attitude ‘Why should I do that? That is HR’s job’.

“It is really easy to develop something and roll it out; the difficulty is getting people to embed it and embrace it as part of what they do,” she adds.

For Harris, the way to get buy-in is communication or “over-communication” as she puts it. “You have got to tell them, tell them what you told them and tell them again — it is really as simple as that.” That and having your leadership involved, and helping to drive change.

Harris says there are signs that HR is growing into its new role of supporting and enabling those in the field, improving the recruitment toolkit and Regus’s various recruitment channels. The improved transparency of the new system allows HR to spend more time on identifying recruitment hotspots to where they can drive traffic. “It is more of a partnership role — there isn’t this kind of tension now between HR, global HR and the guys on the ground. They literally work in tandem with each other, and it is really nice to see,” she says.

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EXPERT OPINION

Why all Umbrella and payroll companies ARE NOT the same

By Sharon Bishop Sales and Operations Director, Candor The HMRC’s discussion document regarding temporary workers claiming tax relief on travel and subsistence expenses, has certainly raised the question about whether all umbrella and payroll companies are the same.

Whilst there are cases of umbrella and payroll companies that do not operate ethically, there are also a significant proportion of us that take compliance within the employment market very seriously.

At Candor, compliance is fundamental to everything we do and we have developed our business to become the umbrella company that you, the recruitment agency, and your contractors, can trust.

We have partnered with tax specialist Accountax to ensure that all of our services and processes are compliant and in line with latest HMRC legislation and regulations.

Our partnership with Accountax, coupled with the fact that every member of our team is fully-trained in HMRC regulations, means that recruitment agencies and their contractors can be 100% confident in us.

Our services are also based on reliability which ensures that the payroll process is stress-free and accurate for you. We pride ourselves on offering exceptional customer service which means you can focus on growing and developing your business.

Whilst writing this, we in the industry still do not know about the final outcomes of the Government’s plans (which may have been announced by the time of publication). However, here at Candor we hope that the Government’s proposals focus on those payroll companies who operate illegally as this would address the real route of the problems and protect contractors across the UK. In our view, introducing restrictions in terms of expenses claimed will severely damage flexibility in the market. The majority of assignments in this sector are for short periods and can involve contractors working away from home.

Increasing the individual’s costs will either lead to an increase in fees for the contractor or a reduction in the number of workers prepared to work at a distance from home.

In addition, we may potentially drive away specialist workers from the UK, resulting in a shortage of labour and effecting business growth. This is certainly not conductive in growing the UK economy as flexible employment arrangements are vital to the competitiveness of the UK labour market.

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11/03/2015 17:03

GETTY

Contractor services

Umbrella stand THE UK’S UMBRELLA COMPANIES ARE FIGHTING BACK AGAINST GOVERNMENT LEGISLATION DRAWN UP TO CRACK DOWN ON CLAIMS OF TAX AVOIDANCE AND BAD PRACTICE IN THEIR SECTOR

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The UK’s umbrella companies face a renewed period of uncertainty as the government looks to bring in yet more legislation to bear down on tax avoidance and bad practice in the sector, writes Colin Cottell.

If implemented, the proposals on travel & subsistence (T&S) expenses, set out in a recent HM Revenue & Customs (HMRC) discussion paper (see box on p36), would remove tax relief on

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From 0 to unimpressed in 8.8 seconds A recent survey suggested that recruiters spend just 8.8 seconds evaluating a potential employee’s CV. A tad harsh some would say but for recruiters, this is standard practice.

contractors, freelancers and small to medium businesses.

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Danbro want agencies to be able to focus their time on recruitment. $V D UHVXOW PDQ\ DJHQFLHV WKDW use Danbro experience more time to focus on gaining new clients, candidates or in developing their own consultants. $V D Âż UP WKDW SURYLGHV DOO FRQWUDFWRU solutions under one roof, Danbro delivers a robust, compliant and concise process, giving you and your candidatesâ&#x20AC;&#x2122; total peace of mind.

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6 Pet-peeves of working in recruitment

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Candidates making you look bad Didnâ&#x20AC;&#x2122;t turn up for your interview? Donâ&#x20AC;&#x2122;t worry about it. Honestly.

Trusted by over 600 recruitment agencies and over 7000 contractors, Danbro has established an excellent UHSXWDWLRQ LQ WKH PDUNHW SURYLGLQJ payroll and accounting solutions to

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01253 600140 11/03/2015 17:04

GETTY

Contractor services

T&S expenses for many umbrella workers. The government says its proposals are aimed at cracking down on tax avoidance that costs the Exchequer at least £400m a year.

However, the sector is not taking the proposals lying down, with stiff opposition being voiced to the government’s latest ideas on how to crack down on such abuses.

Umbrella practitioners and professionals working in and around the sector have variously described the government’s proposals as “unworkable”, “a quick and rushed response” and “a blunt instrument”. They argue that the measures will fail to achieve the government’s objectives, damage the flexibility of the UK’s labour market, and only lead to yet further legislation.

The proposals come against a backdrop of bad publicity about the activities of some umbrella companies, which have been accused of encouraging workers to claim for non-existent expenses, paying workers below the national minimum wage (NMW), avoiding tax and National Insurance Contributions (NICs), and charging workers excessive administration fees. Such abuses by both umbrellas and recruitment agencies were highlighted in a Channel 4 Dispatches programme in January.

John Chaplin, director, global employment tax services at professional services firm EY, says he expects there to be a formal consultation, after which draft legislation would follow.

“Probably coming into effect in April 2016,” adds Kevin Barrow, a partner in the advisory group at law firm Osborne Clarke. An HMRC spokesperson says: “We

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are currently considering responses to the discussion paper. The responses will be considered and used to inform firm action at Budget 2015.”

Julia Kermode, chief executive at the Freelancer & Contractor Services Association (FCSA), a trade body representing 11 of the UK’s largest umbrella companies, accepts “there are some umbrella firms out there that are acting less than ethically, and that their actions are tarnishing our sector”.

Kermode puts the case for why umbrella workers, which the FCSA estimates number between 300,000 and 400,000, should be able to claim tax relief. “The problem is they don’t have that ongoing stability of employment that a permanent worker has, which is why we feel it is fair for them to receive tax-deductible expenses.”

She argues that if tax relief on T&S expenses for umbrella workers were to be removed this would lead to a reduction in their take-home pay. And with little prospect of a rise in assignment rates to compensate, such workers “may be less willing to travel”, Kermode says. “That’s why the government’s solutions are unworkable,” she adds.

Andy Gunson, finance director at Optionis Group, whose brands include umbrella firm Parasol, agrees that one outcome of removing relief could be for umbrella workers to confine themselves to looking for jobs in their local area. “This is going to impact the flexible nature of the UK workforce at the professional end of the market,” he says.

According to FCSA research, umbrella employees travel 35 miles a day on average, claiming travel

Julian Ball

Kevin Barrow

John Chaplin

RECRUITER

APRIL 2015

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12/03/2015 11:32

Contractor services

EMPLOYMENT INTERMEDIARIES: TEMPORARY WORKERS — RELIEF FOR TRAVEL & SUBSISTENCE

expenses for around 181 miles a week. In contrast the average worker travels only 16.7 miles a day.

EY’s Chaplin warns of other unintended consequences. “I am convinced that as many as 80% of workers will shift into other models, with the majority of these going into PSCs [personal service companies],” he says, which have the right to claim T&S relief.

According to Chaplin, this would mean not only that the Exchequer wouldn’t collect the £400m it expects, but it would incur an actual loss. It would also lead to “vulnerable workers being pushed into models that are not appropriate to them”.

According to the FCSA, many lower-paid workers would be forced into dubious models, or even into models, such as payday by payday, which the HMRC has said are non-compliant with social security legislation.

“All you will find is that people go into these solutions in order to get their expenses but end up losing their employment rights,” says Julian Ball, legal director at umbrella and limited company services provider Paystream. These rights include holiday pay, maternity pay and the right to claim unfair dismissal. “Umbrellas are the source of rights in this market,” Ball says. “Do they [the government] really want to take them away?”

“There is no doubt it would damage the sector,” adds Chaplin. However, he doesn’t believe it would spell the end for umbrella firms. “They will exist beyond the legislation. The implication behind the discussion paper is that umbrellas only exist because of tax breaks. If that is correct, then umbrellas will struggle, but actually that is not my feeling,” he explains.

“Umbrellas exist because they give workers rights, choice and flexibility. It’s a positive choice to become a contractor and an umbrella employee,” adds Gunson.

Osborne Clarke’s Barrow describes HMRC’s paper as “a quick and fairly rushed response”. Although he says HMRC could go ahead with either option (see box, above), neither is straightforward, he suggests. However, he argues that “it is almost not worth considering the options unless there is a way of enforcing them”.

Without enforcement, Barrow says, “it is highly likely that lots of small umbrellas will keep going, trying to exploit loopholes in the legislation and hoping nobody notices them”.

Barrow puts forward two possible enforcement scenarios. The first — hiring and training hundreds of tax inspectors — “is not going to happen”, he suggests.

The second is to introduce debt transfer to the hirer, which would result in the hirer being liable for any tax and NICs that umbrella workers should have paid but didn’t. “If the hirer is liable they won’t tolerate schemes that are designed to exploit loopholes, because if the loophole doesn’t work the hirer is liable, and they won’t want to take the risk,” he explains. Of the two, Barrow predicts “it is most likely” that HMRC will go for debt transfer.

Chaplin says his “strong recommendation” would be for the government to clamp down on bad practice using existing legislation. “The mischief being done will not be undone by yet more legislation,” he says.

36

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APRIL 2015

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HMRC wants to remove the right of workers engaged under an overarching contract (OAC) of employment by an employment intermediary (umbrella) to claim tax relief for travel and associated subsistence to/from their home to the workplace of the end client. At present, workers engaged on an OAC can claim relief because each workplace is considered a temporary workplace.

Option one would end this by changing the rules on T&S to make all such workplaces permanent.

Option two would keep the existing T&S rules but no longer allow people employed under an OAC to take advantage of them.

OACs are used by umbrella companies to place temporary workers on multiple separate work placements. The umbrella is the employer and the workplaces are deemed to be temporary workplaces.

Payday by payday model An employment model in which workers claim tax-deductible T&S expenses on a daily basis.

Personal service company A limited company created by a contractor, freelancer, interim managers or consultant to work through.

However, he warns that if HMRC’s solutions are implemented, the government will be forced to introduce PSC compliance legislation to deal with the inevitable flood of new PSC contractors.

“This would stifle the contractor market for those that are genuine contractors wanting to run their own business,” says Chaplin.

HMRC’s T&S proposals come on top of other regulatory changes that are already sending ripples through the UK’s umbrella sector. In its Autumn Statement 2014, the government announced that from 6 April 2016 umbrella companies will no longer be able to reimburse their workers through salary sacrifice schemes, in which expenses are paid in place of salary. The government believes that some umbrella companies are abusing the rules to artificially reduce both the employees and employers’ NICs. And in a further anti-tax avoidance measure aimed at preventing disguised self-employment in agency workers, from April this year, staffing companies will be required to provide quarterly reports to HMRC about themselves and any workers they have supplied to end clients, who are treated as self-employed for income tax and NI purposes.

This will include personal details of umbrella workers, as well as information on the gross amount paid to the umbrella company, and whether income tax has been paid. The penalties for failing to make a return, or making an incorrect return, are an initial fixed penalty up to £3,000 plus daily penalties of up to £600 for continued non-compliance. With the first report due in August, Chaplin warns that, based on his conversations with staffing companies, “the vast majority of employment businesses are not remotely geared up”.

It’s a reminder that whatever those in the sector think of yet more regulation, ignoring it is simply not an option.

Andy Gunson

Julia Kermode

WWW.RECRUITER.CO.UK

12/03/2015 11:33

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11/03/2015 17:06

Operations Manager Remuneration Package negotiable depending on experience.

This is an outstanding opportunity for a capable and highly credible recruitment professional with a proven track record of sustained business growth to head up our Industrial & Driving sector in Scotland.

Jark plc is one of the UK’s leading and largest independent recruitment consultancies.

Established in 1996 and operating from 28 locations, we are looking for a forward thinking, passionate and empathetic recruiter. Reporting directly to the Group Managing Director, you will be responsible for managing all aspects of the Business, including full P&L accountability, within a flexible, forward thinking and supportive management structure.

Ideally, you will have a comprehensive knowledge of both driving and industrial sectors along with a strong intellect to operate effectively in this role. In addition you will need well developed management skills and have the ability to lead, motivate and inspire to promote sales and growth.

This role will offer the successful applicant a market leading salary and benefits package in addition to an exceptional career development opportunity.

Managing Director – Healthcare Sector Remuneration Package negotiable Established in 1996, Jark is a privately owned recruitment agency that has experienced extraordinary and consistent year on year growth. As part of the Group’s continued commitment to growth and expansion, we are actively seeking a Managing Director to head up their Healthcare Sector.

This is an outstanding opportunity for a capable and highly credible recruitment professional with a proven track record of sustained business growth. Reporting directly to the Group Managing Director you will be responsible for managing all aspects of the Business, including full P&L accountability, within a flexible, forward thinking and supportive management structure.

You will need to have a comprehensive knowledge of the Healthcare sector along with a strong intellect to operate effectively in this high profile and critical role. In addition you will need well developed management skills and have the ability to lead, motivate and inspire.

This role will offer the successful applicant a market leading salary and benefits package in addition to an exceptional career development opportunity.

To apply, email your CV to Julie Gover, PA to Group Managing Director at jgover@jark.co.uk or telephone 01362 656136.

All applications will be dealt with in the strictest confidence.

Deadline of 6th April 2015

www.jark.co.uk

REC Apr15.indd 38

12/03/2015 14:55

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Âť Go to www.recruiter.co.uk/jobs WWW.RECRUITER.CO.UK

REC Apr15.indd 39

RECRUITER

FEBRUARY 2015

39

12/03/2015 14:55

RECRUITER REPUBLIC

Creating unique opportunities in recruitment

PROFESSIONAL DIVISION LONDON

Principal Consultant / Practice Manager HR Search / Retained Search

Managing Consultant / Associate Director Senior Finance (FD / CFO level)

Senior Consultant / Account Manager HR into Retail, Hospitality & Luxury Consumer Goods

Executive Search Consultant CFO Practice

Senior Consultant / Principal Consultant International HR Leadership

Head of Contract Division Finance into Commerce & Industry

Senior Consultant / Principal Consultant HR Change Management / Business Transformation

Senior Consultant / Principal Consultant Senior Finance

Recruitment Consultant HR Interims – all levels

Recruitment Consultant Interim Tax Desk

Researcher / Delivery Consultant Search Practice

Researcher / Delivery Consultant Finance / Financial Services

£40K to 70K Base + Bonus + Comm + Bens OTE £125K + Join an elite Àrm operating exclusively within HR recruitment and lead the development of their existing HR search practice as it separates from contingency business. No KPI management style but real commitment to high quality service. Ref: 1641

£28K to 42K Base + Bonus + Comm + Bens + G’tee OTE £85K + High performing HOT DESK (20K pm) within a market leading independent Àrm. This team work under a relaxed management-style and enjoy great tools. You will inherit 30+ major key accounts with agreed terms and strong job Áow. Ref: 2176

£30K to 40K Base + Bonus + Comm + Bens + G’tee OTE £90K + Join an established senior team offering contingency and retained search solutions for global brands, Àlling international HR leadership roles. Long established business, strong brand and relaxed management style. Inherit existing business. Ref: 2171

to £32K Base + Bonus + Comm (30%) + Bens + G’tee OTE £80K + Work alongside a high performing Senior Perm specialist to develop an Interim Desk. Inherit existing clients and candidate database.

Access to great tools in a really relaxed but high-performing environment. Industry-topping package. Ref: 2208

to £34K Base + Bonus + Comm (to 40%) + G’tee OTE £88K + Join one of the most progressive and truly consultative recruitment Àrms operating in HR with fast track options. Brilliant tools, award winning team, culture of excellence. NO KPI management style. Real team collaboration. Ref: 2166

to £30K Base + Bonus + Comm OTE £50K + Join an independent search boutique assisting Practice Manager with candidate mapping, initial approaches, CV preparation and associated research. Open to existing Resourcers, Researchers or Consultants that don’t enjoy BD. Ref 2284

WWW.RECRUITERREPUBLIC.COM RECRUITER DECEMBER 2014/JANUARY 2015

40

REC Apr15.indd 40

£40K to £50K Base + Bonus + Comm (to 50%) + Bens OTE £100K + Mid-size high performing independent agency focused exclusively on Senior Finance offer fast track route to Directorship as they expand all vertical markets - very strong in Technology, Energy, Retail, Luxury Brands, FMCG. Progressive and dynamic environment. Ref:1956

to £65K Base + Bonuses + Bens + G’tee OTE £150K + Join a leading global search practice within their CFO practice with option to focus on a preferred vertical. Impressive tools and brand with mature operating model. Would suit Senior Contingency Recruiter looking to break into Search or existing Search specialist. Ref: 2267

to £48K Base + Bonus + Comm + Bens + G’tee OTE £90K + Join an established and entrepreneurial practice that has historically been perm focused. Take over existing Contractor base and build out a team. Brilliant options to fast track for ambitious Recruiters and potential equity available. Ref: 2174

to £34K Base + Bonus + Comm (to 50%) + Bens + G’tee OTE £80K + Long established independent Àrm with highly connected leadership team offer unrivalled working environment for experienced Recruiters seeking greater autonomy, great tools and greater rewards. Based in central London. Ref: 2173

to £40K Base + Bonus + Comm + G’tee OTE £70K + Elite global recruitment group can offered experienced Finance Recruiters the opportunity to take over a well established and high performing desk focused on placing Interim Tax specialists. Best in class tools, brand and marketing support. Ref: 2198

£30K Base + Bonus + Comm OTE £45K + Work alongside an Associate Director providing full support for all candidate mapping and resourcing duties. This is a multiple award winning Àrm with a fabulous working environment and most extensive staff beneÀts programme in the industry. Ref: 2281

LONDON | 0203 301 0789

CAMBRIDGE | 01223 792190 WWW.RECRUITER.CO.UK

12/03/2015 14:55

Movers & Shakers

•

AIR ENERGI: Ford Garrard joins the energy recruiter as vice president for Africa. Stacie Groce joins as head of global mobility solutions.

•Bergen joins the global executive ALLEGIS PARTNERS: Michael

•

ANTAL INTERNATIONAL: Rohan Mascarenhas joins the global recruiter as an internal recruiter and trainer.

•The St Albans-based recruiter

appoints Michelle Stewart to its board.

•

HAYS: Peter Williams joins the global recruiter’s board as nonexecutive director.

search firm’s Munich office as partner.

CAPITA RESOURCING: The •recruitment outsourcing and

HYDROGEN: The global •recruiter’s founder Ian Temple

MSA EXECUTIVE SEARCH: The US •healthcare search firm promotes

succeeds fellow founder Tim Smeaton as CEO. Smeaton has stepped down. Stephen Puckett succeeds Temple as chairman, while Anne Baldock succeeds Puckett as senior independent director.

Roger Samuel to executive vice president and practice lead.

CTPARTNERS: Vice chairman •Sylvain Dhenin replaces chief

executive Brian Sullivan.

•

EAMES CONSULTING GROUP: Tristan Amin joins the

international recruitment and search consultancy as associate director of the change management and technology division.

• Lüdke joins the global executive HEIDRICK & STRUGGLES: Tim

•

KELLAN GROUP: Richard Ward, CEO of recruiter Fusion People, has been appointed to the Kellan board as executive chairman, succeeding Tony Reeves.

•

as MD for its built environment business.

KORN FERRY: James Bright joins the executive recruiter’s London office as senior client partner.

Mehrab Deboo joins as member of the firm’s Global Supply Chain Center of Expertise. He is based in Chicago.

GCS RECRUITMENT SPECIALISTS: •Richard Brady joins the

LAWRENCE HARVEY: The global •recruiter promotes Adam Smith

technology, financial and engineering specialist recruiter as head of sales in London.

from associate director to director of enterprise solutions.

•joins the construction recruiter

EDEN BROWN: Greg Lettington

•John McLeod joins the IT services, GLOBETEC SOLUTIONS GROUP:

outsourcing and consulting firm as security practice director.

•

LIVINGSTON JAMES: Recordbreaking long-distance cyclist, broadcaster, author and motivational coach Mark Beaumont joins the executive

Connex Education Recruitment consultant Education, sales £20k-£22k Warrington

•

BOYDEN: Kristine Cholewa joins the global executive search firm as managing partner of its Denmark business.

talent consulting provider hires Jo Matkin as sales director.

Cielo Senior recruitment adviser, RPO Healthcare Staines, Middlesex

search firm’s advisory board as ambassador and mentor.

MONTREAL ASSOCIATES: Kevin Hodgson joins the specialist technology SAP recruiter as team leader of the DACH (Germany, Austria, Switzerland) division.

•

Ruella James Recruitment consultant Secretarial, temps and perm Basic to £35k, OTE £60k Central London

driving company growth.

Leyshon has managed the company since 2003, leading the management buy-out of Butler International (UK) that year, acquiring CBS Appointments the following year and then merging the two companies to become CBSbutler.

•

BERRY RECRUITMENT GROUP:

A selection of vacancies from recruiter.co.uk

Bernard Ward joins technical recruiter CBSbutler as UK managing director, succeeding long-standing incumbent David Leyshon, who takes up the position of chairman.

Ward joins from Reed Global, where he held the post of regional MD for EMEA (Europe, Middle-East and Africa), with the remit of

search firm as managing partner and global practice leader of its HR practice. Cher Murphy joins as managing director of the global HR practice. Both are based in the US.

ARGYLL SCOTT: The middle management specialist recruiter promotes Tom Swain to MD, Singapore.

Your next move?

WARD APPOINTED MD ATCBSBUTLER

•

ODGERS INTERIM: Stuart Hay joins the executive interim division of Odgers Berndtson as partner within its Calgary, Canada office.

•

For more jobs, people moves and career advice go to • recruiter.co.uk/jobs • inhouserecruiterjobs.co.uk • internationalrecruiterjobs. com

retail and consumer practice; head of transport and infrastructure executive interim practice; senior consultant; senior consultant; local government, not-for-profit and education sector lead.

OPTIONIS: Steven Lloyd joins the board of the staffing industry services group.

SHEFFIELD HAWORTH: Christopher •Smailes joins the global financial

OPUS RECRUITMENT SOLUTIONS: •Clare Trotter joins the IT and oil &

services executive search firm as executive director of the asset management practice in New York.

gas recruiter as regional director, Holland. She is joined by Rory Mullins who leads the permanent team.

UK: Nick Dettmar •joinsOUTSOURCE the IT and engineering

recruiter as chief operating officer.

•

PENNA: Marcus Lorenzo, Karen Camilleri, Matthew King, Andrew Cholerton and Catherine Kift join the global people management business’s executive interim and search practice in the respective positions of head of

STAFFORCE RECRUITMENT: The •industrial and commercial recruiter

restructures its senior management team, promoting Annamarie McHugh to head of operations and Adrian Tams to talent manager; and appointing Richard Hayes as operations manager for Yorkshire and the Midlands and Denise McGuire as operations manager for the North and Scotland.

•

WRS: Ash McDonagh joins the global marine, construction and power industry recruiter as head of learning and development.

Email people moves for use online and in print, including a short biography, to recruiter.editorial@redactive.co.uk

WWW.RECRUITER.CO.UK

49_Recruiter_movers_APR15.indd Sec3:49

RECRUITER

APRIL 2015

41

12/03/2015 15:18

Bloggers with Bite

WHAT RECRUITERS CAN LEARN FROM A RICH AD MAN What is your unique selling proposition? Be different from the rest! Recruiters need something to make them stand out from the crowd avid Ogilvy was an ad man who built a business that he sold for more than $850m (£552m), lived in a castle and died 15 years ago.

He also wrote some books, and what he said in Ogilvy on Advertising is relevant to recruitment right now.

It was first published in 1983, and no one seems to have learnt anything since then.

Here’s what Ogilvy said that is relevant to recruiters: If you’re selling a commodity, the most different product wins.

And here’s what I’m saying that is relevant to recruiters: Selling recruitment services is just like selling a commodity.

So how are you different? Do you have anything even approaching a USP (unique selling proposition)? I don’t care if you’re a consultant and not a business owner — it’s still your responsibility to know this stuff.

So I ask again: what is your USP? If the words “We interview all our candidates” or “We’ve been established for x many years” even cross your mind — stop, go straight to jail, do not collect £200 and hang your head in shame.

D

Jeremy Pierce is senior consultant, food manufacturing, interim division, at Silven Recruitment

You think there’s no such thing as a USP in recruitment? Nonsense.

For some reason, it seems to be OK to believe there is “no such thing” as a USP in recruitment.

I have no idea why. Why is selling recruitment any different from selling insurance or nuts and bolts?

Such products and services operate in markets that are basically commoditised — but that doesn’t stop them from developing a USP. I’m not saying it’s easy; I’m just saying there’s a massive difference between it being difficult and it being impossible.

“But I can’t be unique — there are too many competitors,” I hear you cry.

Entrepreneur, marketer and blogger Seth Godin said you’ve got to be the best ‘in the world’ at what you do. He was that specific — but he also qualified his statement.

‘In the world’ means in the experience of the person you are marketing or selling to. And that’s great news. It means there’s room for you to know your niche better than anyone else. To only do exclusive contingency. To never wear a suit.

Whatever. It also means there’s no excuse for not having a USP. Having one will help you place people today and tomorrow. But so will marketing out a candidate.

What marketing out a candidate won’t do is put you on a PSL (preferred supplier list) or win you a beauty parade. Give a business a reason to return to you time and time again, even after your initial contact has left.

It gives you something to build your branding on.

So, unless you’ve got no aspirations, you really do need a USP.

Selling recruitment services is just like selling a commodity. So how are you different? Do you have anything even approaching a USP? What would you like to have a rant about?

Tell us at recruiter.editorial@redactive.co.uk

TO POST YOUR COMMENTS, GO ONLINE

RECRUITER.CO.UK 42

RECRUITER

APRIL 2015

50_Recruit_bloggers_APR15.indd Sec2:50

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