Recruiter July 2013 by Redactive Media Group

July 2013

www.recruiter.co.uk

BUSINESS INTELLIGENCE FOR RECRUITMENT AND RESOURCING PROFESSIONALS

Tim Campbell MBE

Lord d Sug gar’s ﬁrst Apprentice drraws on his experience p to inspire ﬁrms to take advantage of emerging talent

REC’S SALARY SURVEY The Recruitment & Employment Confederation’s first salary and benefits survey since 2009

INCORPORATING 01_Recruit_july13_Cover_V3.indd 1

NEW! RICKY MARTIN MONTHLY COLUMN 2012’s The Apprentice winner on the reality of setting up a recruitment business

SPOTLIGHT ON GHANA Expats look home as the economy looks up — and recruiters are in demand

Recruitment Matters 11/07/2013 09:09

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Contents 32

The old saying “Lightning never strikes twice” certainly doesn’t apply in this issue, with appearances in our pages by not one but two previous winners of BBC TV’s The Apprentice series: Tim Campbell MBE and Ricky Martin. Believe it or not, this dual stroke of great editorial fortune all happened by pure coincidence. We are delighted to feature our exclusive conversation with the charismatic and dynamic Mr Campbell who has recently joined Alexander Mann Solutions, and excited to launch our exclusive monthly column from the 2012 Apprentice winner Ricky Martin. As you may know, Ricky started his own recruitment business last year, and he tells us all about it in this issue. We hope you’ve seen our online coverage on www. recruiter.co.uk of the controversy over the National Health Service and questions surrounding its payment of VAT for staffing services. We will follow this continuing story in weeks to come, but a key question remains: should the NHS, or any public sector body, actually have to pay VAT? It all comes from the taxpayer ultimately. Allow the NHS exemption from VAT. Perhaps more jobs might result from the savings? Finally: umbrella companies are never far from Recruiter’s headlines. Please take part in the survey we are conducting with FPS Group to gauge the wants and needs of umbrella clients. And all responses are confidential. See p5 for more.

NEWS 5

Days are numbered for tax avoidance offshore It could soon be all over for agencies working with providers of offshore tax schemes

21st century solution New guild promises to boost recruitment into ﬁnancial services sector

REGULARS

Cultural differences are the main hindrance to Chinese candidates in Western ﬁrms

19 21 21 24

8 Tech & tools 10 Special Report The REC’s Salary & Beneﬁts Survey for the recruitment industry

13 NEW! Ricky Martin column The Apprentice winner on the reality of setting up a recruitment consultancy 14 Sector Analysis 13 Hospitality 17 Global

Spotlight on Ghana

Scan here to get your own copy of Recruiter

28 COVER STORY Tim Campbell MBE, head of client services for emerging talent at AMS 32 Software solutions Capture and analyse the right data to improve hiring the right people

The Chinese factor

ANALYSIS

DeeDee Doke, Editor

FEATURES

Soapbox Soundbites Letters Insight The human touch is vital for successful volume recruitment, says Independent’s Phil Clarke

26 The Challenge Elance and SKT Consulting 38 Movers & Shakers Industry moves 42 Bloggers with Bite

WHO’S HIRING? 39 Ruth Moran 40 Human Capital Investment

Group 41 Driver Hire

EDITORIAL Editor: DeeDee Doke T: +44 (0)20 7880 7601 deedee.doke@recruiter.co.uk Senior reporter: Colin Cottell T: +44 (0)20 7880 7603 colin.cottell@recruiter.co.uk Reporter: Sam Burne James T: +44 (0)20 7880 7606 sam.burnejames@recruiter.co.uk Contributing writer: Sue Weekes Work experience editorial assistant: Beth Fiﬁeld Production editor: Vanessa Townsend T: +44 (0)20 7880 7602 vanessa.townsend@recruiter.co.uk Art editor: Adrian Taylor ADVERTISING Advertising director: Andy Daniel T: +44 (0)20 7880 7607 andy. daniel@recruiter.co.uk Display sales executive: Jasmine Pengelly T: +44 (0)20 7880 6205 jasmine.pengelly@recruiter.co.uk Recruitment advertising: Amalia Zafeiratou +44 (0)20 880 7608 amalia@redactive.co.uk Fax +44 (0)20 7880 7553 PRODUCTION Deputy production manager: Kieran Tobin T: +44 (0)20 7880 6240 kieran.tobin@redactive.co.uk PUBLISHING Publishing director: Anne Sadler T: +44 (0)20 7880 6213 anne.sadler@redactive.co.uk RECRUITER AWARDS Events: Juliette Bond T: +44 (0)20 7324 2771 juliette.bond@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@alliance-media.co.uk • To purchase reprints or multiple copies of the magazine, contact Andy Daniel T: +44 (0)20 7880 7607

Total average net circulation between 1 July 2011 & 30 June 2012 – 17,838. Recruiter is also sent to all REC members R d ti M Redactive Media di Group 17-18 Britton Street London EC1M 5TP

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. © 2013 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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10/07/2013 11:38

DAYS NUMBERED FOR THOSE AVOIDING UK TAX BY GOING OFFSHORE An HM Revenue & Customs (HMRC) consultation, containing proposals to make offshore employers liable for deducting UK PAYE/National Insurance Contributions (NICs) in full from UKbased workers’ pay, ends on 8 August. If introduced into law as expected, the proposals will see responsibility for the deductions pass to an intermediary — usually a UK-based staffing company — and after that to the end user. And tax and contractor market experts warn that the days of UK-based workers successfully avoiding UK PAYE and NICs by being employed by the offshore intermediaries are numbered. Any new legislation resulting from the consultation would take effect in April 2014. Lisa Keeble, managing director of Contractor Umbrella, told Recruiter that the threat of debt transfer and the reputational damage from being associated with tax avoidance would “see an end to agencies working with providers of offshore schemes”. She continued: “The clients will say ‘We will not deal with you if you deal with offshore intermediaries’.”

Location doesn’t matter — it’s how companies comply

The proposals undergoing consultation also pass responsibility for compliance up the supply chain to staffing businesses, and ultimately end users, by making the intermediary responsible for filing a quarterly return to HMRC. This will contain the names, NI numbers, and length of assignments of contractors, and details of the offshore employer. If the intermediary fails to provide this, then the end user becomes responsible. John Chaplin, director of global

APPRENTICESHIPS TO RISE • apprentice roles in the UK could nearly double THE NUMBER of people placed into

over the next five years, Tim Campbell MBE, the first winner of TV’s The Apprentice and now head of client services for emerging talent at Alexander Mann Solutions, has predicted. At the same time, Campbell has told Recruiter the UK is also likely to see “a much more generous spread of apprenticeship hotspots across the country” beyond London. The Department of Business, Innovation and Skills’ Skills Funding Agency has reported that 520,600 people started apprenticeships in 2011-2012, the most recent period for which figures are available. Speaking exclusively to Recruiter, Campbell said: “I predict that in, say, five

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years’ time we are going to have maybe 1m people taken on by apprenticeship places. “Although London is seen maybe as the flagship ‘poster boy’, and yes, the vast majority [of apprenticeships] were in London, you have a great minority which is growing outside London. What we are finding is that brands and organisations which have regional offices and facilities are now opening themselves up to apprentice programme as a viable option to generate a talent call for themselves,” Campbell went on to say. Medium-sized businesses focused on growth also are likely to offer apprenticeships to build their talent pipelines “to make sure that scale continues”, he added. • See the profile of Campbell on p28. DEEDEE DOKE deedee.doke@recruiter.co.uk

News

employment tax services at Ernst & Young, told Recruiter: “The writing is on the wall for these sort of arrangements.” He went on to say, “HMRC will expect end users to carry out due diligence on and do more work around where agencies get their workers from.” Matthew Huddleston, chief financial officer of Isle of Man-based umbrella firm FPS Group, warned against tarring every company operating there with the same brush: “It is not where you are that matters, but what you do.” He said that his company “remits full NI and PAYE just like every other compliant umbrella”. In his Budget statement in March, Chancellor George Osborne said: “My message to those who make a living from advising people how to aggressively avoid their taxes is this: this government will not let you get away with it.” • To participate in the consultation, visit www.gov.uk/government/consultations/ offshore-employment-intermediaries COLIN COTTELL colin.cottell@recruiter.co.uk

PAYROLL SURVEY •

WHAT DO you think about payroll providers? And what is the impact of constantly changing regulations and legislation on your business? FPS Group and Recruiter want to know what people are thinking at all levels in the recruitment industry, and have teamed up on a quick and easy survey to find out what your concerns and issues really are. The survey is totally confidential. Your answers will provide invaluable information to the industry as a whole. The survey results will be reported in a future issue of Recruiter. Matthew Huddleston, managing director, FPS Group, said: “Suppliers tend to assume they know what recruiters think and what services they need. Sometimes this isn’t the case, which is why FPS is working with Recruiter to get a better understanding of the impact of legislation and regulation on their roles and businesses, what relationship they would like to have with suppliers and how this should affect financial incentives.” • To get involved, visit www.recruiter.co.uk/ fps-surveys

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News

Random thoughts from recruiter.co.uk, Twitter and beyond…

“Work experience should be about inspiring… not filing or making tea” TIM CAMPBELL MBE (SEE P5 AND PROFILE ON PP28-30 FOR MORE)

Events Social media in recruitment, hosted by the Recruitment Society 24 July, London recsoc.org/events

#rcnvs Big Data and Recruitment Analytics 1 August, London eventbrite.co.uk/ event/6816254601/

Recruitment Agency Expo Birmingham 2-3 October, NEC Birmingham recruitmentagencyexpo.com/ birmingham

SourceCon 2013 Seattle 2-3 October, Microsoft HQ, Redmond, Washington sourcecon.com/2013seattle

APSCo Annual Conference 18 October, Radisson Blu Portman Hotel, London apsco.org/

YourFoodJob People Awards 2013, in association with Recruiter 6 November, The Lowry Hotel, Manchester yfjpeopleawards.com

CIPD Annual Conference

GUILD OFFERS 21ST CENTURY SOLUTION FOR FS SECTOR A new guild will boost recruitment into the UK’s much maligned financial services (FS) industry, according to those responsible for building its talent pipeline. Speaking at the launch of the 21st Century Guild (21CG) at the Guildhall, Roy Leighton, chairman of FSP, the sector skills council for the UK’s financial services, finance and accountancy sectors, said: “There is no doubt that we have a bit of a problem in recruiting into financial services.” Leighton said the guild represented an opportunity for the industry “to change the way that it is viewed by equipping young people with the skills to open the doors wide and to entice people into the exciting careers within financial services”. 21CG uses modern technology, including a careers portal that allows people to take online tests, participate in seminars and work towards a series of awards based on their learning activity. City firm employees who mentor young people will be

Ancient and modern meet at the Guildhall: (l-r) Toby Grimshaw, Careers Info; Liz Field, CEO FSP; Vimal Patel, director, FARM Digital

able to conduct their mentoring online. “If you are running an event for 20 people, we will be able to capture that and produce that in a digital way, so that if you aren’t physically there you will still be able to see it,” Liz Field, FSP’s chief executive officer, told Recruiter. She added: “This is why it is 21st century.” Employers will also be able to search for jobseekers who meet

specific criteria, such as their geographical location and how far they have progressed in their learning. Andres Arango, public affairs manager at City firm Crownplace Consulting, told Recruiter: “The City has always been very regimented and a tight network when it comes to recruitment, and this wipes all that away.” COLIN COTTELL colin.cottell@recruiter.co.uk

6-7 November, Manchester cipd.co.uk/cande/annual

IRP Awards, organised by the REC 3 December, London Marriott Hotel, rec-awards.com

Recruiter Awards for Excellence 2014 May 2014, Grosvenor House Hotel, London

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TALK ABOUT PLANNING, NOT FILLING •

SUCCESSFUL RESOURCING is about looking ahead and working back, rather than simply plugging existing skills gaps, resourcing and recruiting professionals have heard. Speaking at a Chartered Institute of Personnel & Development (CIPD) conference in London, Jo Taylor, resourcing and talent manager at telecoms and internet firm TalkTalk Group, said: “Most people when they think about talent think about filling the gaps.” However, Taylor said that a successful resourcing strategy needed a different focus. “You constantly having to think about the business first rather than about filling the gaps. If you know where your business is going you can ultimately work back to understand what your gaps are, what your needs are, what is your supply and what is your demand,” she said. “Our agenda starts and finishes with TalkTalk’s strategic plan; it is absolutely driven by the business — it is not driven by the people agenda.” Taylor said that holding workforce planning meetings with the business was invaluable at TalkTalk. “We are pushing the business to tell us what exactly they need in terms of the skills, of the capabilities and the attitudes they want.” COLIN COTTELL

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News

“I always say there’s room for agencies, but then I get a load of phone calls when I do” LV=’S KEVIN HOUGH AT THE CIPD RECRUITMENT CONFERENCE

“Nobody joins a business as the finished article. This is where employers come in” RICHARD FORTE, MCDONALD’S UK COO ON THE IMPORTANCE OF TRAINING (SEE P14 FOR MORE)

“I’m used to working online with people and never meeting them face-to-face” ELLIOT NEWSOME, SKT CONSULTING (SEE THE CHALLENGE, P26)

CAREER FAIR WOOS EXPAT GHANAIANS Enticing skilled professionals to come home to Ghana and getting investors on board to finance development in the country were equal priorities at last month’s Ghana Careers Fair 2013. Organised in London by the GUBA Awards, the event was attended by professional expatriate and diaspora Ghanaians scoping opportunities in one of the world’s fastest-growing economies. And they were met not just with companies looking to woo them into taking a job, but the possibility of taking out their chequebook and investing. One of the panellists speaking before the fair was Eric VincentGuichard, the founder of expatriate investing platform Homestrings — a fusion of heartstrings and homesickness. He says he is looking to tap into “that feeling that the train is leaving” among expats keen to make a difference back home. “We have 2,000 investors on the platform, with the majority being Ghanaian, with an indicative annual investment portfolio of $25k (£17k),” he said. While Ghana has a multitude of jobs on offer, conversely in the investment space “the challenge is on us” to accommodate all that available money, he added. Another panellist, Roland Agambire, chief executive officer of Ghanaian telco firm RLG, said that his firm had seen “so much oversubscription of investor interest” in its Hope City IT hub development. • See p19 for more on Ghana’s needs. SAM BURNE JAMES sam.burnejames@recruiter.co.uk

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Contract News Assist Recruitment: The

THE CHINESE FACTOR Cultural factors make it more difficult for international companies to find the Chinese talent they need, recruiters say. An example of the challenges in finding the right Chinese talent was given recently by Aida Alice Bayoud, vice president at Value Retail China, which is recruiting for a new shopping village selling luxury brands near Shanghai. Bayoud was speaking at a China Skills recruitment event hosted by Sino-UK networking and cultural and knowledge-sharing organisation Chopsticks Club. However in Chinese culture people are reluctant to challenge the status quo, and often say what their boss expects them to say rather than what they actually believe. Samantha Barker, head of talent acquisition at Dyson, also at the job fair told Recruiter that questioning was “very much a requirement in all parts of Dyson”. “We look for that and we encourage it,” said Barker. “They have to be able to speak up if something is not working – that is something that we very much ask at the interview stage.” Barker said that this might put Chinese candidates at disadvantage, however those who have had “some form of education in the UK” will have “probably learned to express themselves and to challenge”. Martin Archer, a senior coach at Mandarin Consultant, whose clients include Chinese jobseekers, told a seminar at the job fair that Chinese candidates “need to change their thinking” if they are to land a job in an international company. “We find that Chinese candidates struggle with the Western way of selling themselves to employers,” he said. Whereas in China this is done on the basis of their experience and guanxi (their network of personal relationships), international companies are interested in people’s skills, their personality and their motivation, said Archer. COLIN COTTELL

KEEP CALM AND ZERO ON

RISE in zero hours contracts must not be blown out of proportion, •theTHEdirector of research body The Work Foundation has said.

At a London event hosted by the organisation on the issue last month, Ian Brinkley said: “In some sense it’s difﬁcult to work out why we’re sitting in this room, because zero hours contracts make up less than 1% of the workforce.” And he emphasised the need for more research on the matter, calling some existing data “very dodgy”. “This is a very important economic question but it’s not just an economic question,” said panellist Alison McGovern, MP for Wirral South, arguing that however widespread the contracts, exploitation, in the minority of cases where it does take place, must be eliminated. The panel, which included representation from the REC and the TUC, broadly agreed that an outright ban on the contracts would be misplaced.

supply chain, production and manufacturing recruiter has acquired rival Manchesterbased Top Gear Recruitment… Bernard Hodes: The recruitment marketing firm has joined with on-demand talent technology provider Findly to form Findly/Hodes... cph: The RPO firm has seen its contract with broadcasting joint venture YouView renewed and expanded… Euromedica: The life sciences executive recruiter has seen a management buy-out, supported by James Caan’s private equity firm Hamilton Bradshaw… gap personnel: NOW: Pensions will supply auto-enrolment pensions plans to the temp recruiter… IOR: Trade body the Institute of Recruiters has been busy, partnering or teaming up with industry suppliers Boomerang, PayMatters, Recruit So Simple, Recruitive and w4A… ISIS Equity Partners: The investment firm has supported an MBO at executive recruiter Armstrong Craven and taken a 35% stake in IT recruiter Nigel Frank International… NRL: Specialist recruiter Petrolic Consultants has been bought by the technical staffing provider… PeopleScout: The RPO firm has sealed a deal to hire 100,000 veterans for retail titan Walmart in the US... Pure Search: The search firm has acquired financial markets headhunter Correlate Search... RecruitmentForce: The web recruitment software firm has received an additional £200k investment from Northstar Ventures… Skilled Group: The Australian recruiter has acquired marine services provider Broadsword Marine Contractors…

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News

Tech & tools

VIDEO ATTRACTS WIRELESS STARS amsung Cambridge Solution Centre (SCSC), part of the global electronics brand’s mobile and connectivity business, has developed an innovative video-led landing page for all of its recruitment activity based on the Plugin Recruiter platform. SCSC was formed when Samsung acquired part of Cambridge-based CSR last year, which also has offices in the US, Denmark, France and India. Hayley Bird, senior HR officer, told Recruiter that despite being part of a major global brand, it had difficulty recruiting people after the acquisition. “No one knew who we were,” she said, adding that there was hot competition for technology talent in Cambridge due to the large number of hi-tech companies. Bird had been introduced to the Plugin Recruiter platform in a previous role and felt it would match SCSC’s requirements. “I wanted two things: a platform to let people know we were here and also to raise profile and employer brand in general,” she said. “We wanted to be able to use the Samsung brand on the landing page but also wanted it to be specific to Samsung Cambridge Solution Centre so people could differentiate us from Samsung Mobile or the other Samsung subsidiaries here in the UK. We wanted to get across exactly what we do as an R&D and engineering facility.” As a leading-edge technology company, Bird felt it was important to be “recruitment innovators” and worked with Plugin to develop a range of videos (below right) from hiring managers and those working at the company. A video clip accompanies many of the job vacancies, while employees provide insight into working at SCSC and Cambridge. “I felt there was no better way of letting people know what it is like to work here than from the people they’d be working with,” said Bird. “We tried to make it about every aspect of working at SCSC and, as well as the company, [we] are selling Cambridge as a place to work. We’ve had incredible feedback and even the team at Plugin were surprised at how quickly it went viral.” SCSC makes use of a ‘light’ applicant tracking system (ATS) built into the Plugin Recruiter platform and candidates can apply from the landing page and create a profile. Recruitment and employer branding activity is fully integrated with social media channels, with potential candidates drawn back to the landing page. After initially focusing on software-based jobs, the strategy will broaden out to other roles and Bird is also

looking into how the platform can be used to attract graduates. Ultimately, the aim is to reduce reliance on agencies and move to a direct resourcing model. Being realistic, Bird Hayley Bird believed the ratio would probably be 10-20% agency and the rest direct. She has recruited Victoria Thompsett as recruitment officer to take the strategy forward who, importantly, said Bird, has both search & selection and media & marketing expertise. Meanwhile, Plugin Recruiter has evolved since its launch last year (see Recruiter, December 2012) and is aiming to become an end-to-end branded video solution. It recently became the only non-ATS provider to be fully integrated with the video-interviewing technology Sonru. Plugin Recruiter chief executive officer Chris Heron told Recruiter that it would also be revamping the platform’s front-end and opening it up to recruitment agencies and recruitment process outsourcing companies. “It means the agency could go to potential clients and say that they can build them a bespoke landing page with video, make it very persuasive and explain that they can carry out all of the filtering at the back end,” explained Heron. Plugin Recruiter is in the process of testing the service with two agencies and has also partnered with UK and South African employer branding companies. www.pluginrecruiter.com www.pluginrecruiter.com/samsungscsc

Bob McNinch

Tapping into the national talent pool A new model of the web-based system Slivers of Time is aiming to help employers tap into the talent pool of available and under-employed people. Up until now, the system has been primarily used to help third sector organisations make use of and manage volunteers. The new version allows paid-for as well as volunteering work to be booked via the platform. Chief executive ofﬁcer Bob McNinch, one of Apple’s original start-up employees in Europe, told Recruiter that it particularly wants to help the large numbers of available people in the 16-24-year-old age bracket. It found that while many of these have mobile devices, they don’t necessarily have a PC so it has used “responsive design” to build the site, which means the system responds to the screen size of whatever device the individual is using, be it a smartphone, iPad, tablet or desktop computer. “Slivers of Time’s USP is that it helps people react to something at the last minute,” said McNinch. “This technology increases the options for people to do this no matter where they are or what device they are using.” Previously, the site focused on small and precise periods of time (hence its name) but the new model extends this to any length of temporary work. As a social enterprise, Slivers is building relationships with local councils and other public sector organisations to use the available talent pool to directly address their needs. “With 2.5m people unemployed, the old model of waiting for people to apply for a job doesn’t really make sense any more,” said McNinch. “The more ﬂexible approach also allows people to build up their work experience.” Slivers of Time will be prototyping the new system in East London, Hertfordshire and Bristol, with a view to national roll-out eventually. Among the large employers it has been in discussion with in these areas are local councils and the NHS. www.slivers.com

SUE WEEKES

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77% of

employers believe apprenticeships

make their organisation more

competitive Apprenticeships in recruitment Building the future of recruitment If you would you like more information on how to take on an apprentice or become the next big apprentice in recruitment Register your interest now by visiting: www.rec-irp.uk.com/apprenticeships

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News

SPECIAL REPORT

Web comments Recruiters welcome government’s £100bn infrastructure investment (recruiter.co.uk, 28 July) “Great news! The economy can certainly do with an injection like this. However I hope that the HS2 project does not get the green light mainly due to the job creations argument. Where feasible we should be trying to move more employment outwards rather than creating faster links into London. I believe it will help protect the environment and help support sustainable communities outside London.”

John Adams PageGroup voices support for trade body mergers (recruiter. co.uk, 20 July) “I see the current industry bodies as a bit of a gravy train… for very little gain other than having members’ details sold onto insurance companies who then hound us with sales calls. Salaries of admin staff is where much of the membership fee is wasted. I would prefer to see a united body where the board is voluntary and made up of senior executives of recruitment agencies and senior HR officers of large companies. They could then discuss and lobby in a more effective way and at a much lower membership price.”

Andrew Pearson REC to begin informal conversations about possible merger (recruiter.co.uk, 17 June) “Any move towards consolidation should be about improving standards in our industry and increasing the profile of recruitment as a profession… Surely it’s time for change and we should be looking more towards a body to represent the profession and not the trade. It’s not about the number of bodies in the sector it’s about the quality of the provision they provide and the engagement that the bodies are securing with both membership and society at large.”

Darren Carter

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RECRUITERS’ SALARIES AND BENEFITS ON THE UP IT’S GOOD NEWS FOR RECRUITERS IN THE REC’S FIRST SALARY & BENEFITS SURVEY FOR THE INDUSTRY SINCE 2009 Recruiters working in clerical, retail and sales disciplines have enjoyed the highest rate of increase in total earnings in recruitment over the past four years, according to the 2013 Salary & Benefits Survey by the Recruitment & Employment Confederation (REC). The 45% rate of total earning increase for recruiters across that group (including hospitality, office professionals, sales & retail) sharply contrasted with the 6% increase received by their colleagues working in professional & business services [accounting & financial, education] over the same period. The 6% hike in total earnings for that group was the lowest increase across recruitment sectors, the report reveals, during a time that has been characterised by economic volatility and challenging business conditions.

Recruiter beneﬁts The 2013 survey is the first of its kind undertaken by the REC since 2009, when the global economic downturn had struck a major blow against the UK economy and the recruitment sector. The 2013 picture reflects overall increases in salary and benefits for recruiters, higher levels of job satisfaction and also rising staff turnover from four years ago. Conducted for the REC earlier this year by the Cordoba Group, the survey involved 402 participants from across the UK, a similar sampling to that in the 2009 survey. Kevin Green, REC chief executive officer, said: “We

know that pay and benefits aren’t the only reasons recruiters love their jobs. The buzz of a fast-paced business, the variety of activity and the satisfaction of helping people find work are rewards in themselves. That said, we hope insights from this data are useful to managers and consultants who want to benchmark themselves within the industry and to business owners who want to know what to offer to attract and retain talent. “In 2009, when we last assessed recruiters’ salary and benefits, the industry was deep in the throes of a recession. Four years on the picture is much rosier. Salaries and total earnings have risen, benefit entitlements have increased and eight out of 10 recruiters tell us they are satisfied in their jobs. “This industry is incredibly resilient and all our research shows that it has not only weathered the storm but is on track to become even bigger and better.”

Sector representation The largest percentage of respondents (19%) identified office professionals as the sector most important to their business. The smallest, or 2%, identified nursing & social care as their key sector. The others were, from larger to smaller: industrial, technology, accounting & financial, engineering & financial, construction, sales & retail, hospitality, drivers, healthcare, education and medical. Of the respondents, 63% were consultants and 37% were managers.

Staff churn While perception of staff turnover as quite/very high has risen from 13% to 19% since the last survey, the 2013 report finds the industry in a period of stabilisation and recovery. This follows a steep drop in staffing levels in recruitment during the downturn. In 2008, the industry employed more than 110,000 people, a number that dropped by nearly 30,000 in 2010. At the same time, total industry turnover fell by over 25% from £27bn in 2008-09 to £19bn by 2010-11. In 2013, “staff numbers have recovered to 92,466”, just below the total at the time of the 2009 survey, the report says.

Recruiters’ salary Before tax and National Insurance, and excluding bonuses or commission, the average salary of recruiters has increased by 29% to £35,312 from £27,420 between 2009 and 2013. Consultants’ basic salaries have risen by 11% to an average of £27,820 while managers have enjoyed a generous average pay hike of 41% to £48,034. At the same time, the highest percentage of recruiters, or 41%, remains in the £20-29k basic salary pay range this year, a nearly identical figure to the 40% recorded in that range in 2009. The greatest increase was felt in the £50k-plus earning group between 2009, when 6% of recruiters earned that much, and 2013, when 17% reported a basic salary in that range. Among managers, 38% earned a basic salary of more than £50k. Nearly a quarter of consultants, or 21%, earned cont. p12 X

Average recruiter salary by job type 2009-13 Average salary 2009

Average salary 2013

% increase

Consultants

£25,010

£27,820

11%

Managers

£34,109

£48,034

41%

All recruiters

£27,420

£35,312

29%

WWW.RECRUITER.CO.UK

11/07/2013 16:39

REC.07.13.011.indd 1

10/07/2013 11:46

SPECIAL REPORT

Job satisfaction: All respondents: 2009, 2013

Very satisfied

of British workers are happy with their worklife balance, despite often having to work longer hours during the recession, according to research carried out by Randstad UK

Satisfied

Neither

Dissatisfied

■ 2013 ■ 2009

Very dissatisfied 10%

X cont. from p10 more than £30k, while 57% earned less than £25k. While recruiters operating in clerical, sales and retail disciplines saw the greatest rate of increase in total earnings, recruiters working in technical/ engineering continue to earn more than those in other sectors. In 2013, technical/ engineering recruiters receive an average of £51,405 in total earnings, up from £44,872 in 2009. Next in line for top average total earnings this year are professional/business services recruiters at £47,019. Heathcare recruiters earn the least in 2013, with average total earnings of £43,232, an increase of 18% since 2009. In the last survey, the clerical, retail and sales recruiters held the bottom pay rung, earning £31,569 in average total earnings; that figure has seen a 45% boost in 2013 to £45,628 annually. In terms of basic salary, recruiters working in clerical, retail and sales also fared well over the four years from 2009 to 2013, seeing a 50% rise from £23,709 to £35,674. The next highest percentage rise was in the semi-skilled arena, where recruiters saw a 39% rise in average basic salary from £24,984 to £34,657. The lowest rise, of 15%, went to recruiters in professional/business services.

20%

30%

Nine out of 10 consultants and managers have the opportunity to earn a bonus. For 71% of consultants and 46% of managers, this is a personal bonus paid monthly. Four out of five consultants and managers must exceed a target of billings or gross profits to earn their bonus. Almost two-thirds, or 63%, did so in 2013. 70% of consultants earn an average monthly bonus of less than £2,000. Three-quarters, or 76%, of managers earn an average monthly bonus of between £1,000 and £5,000. More managers and consultants are entitled to job-related benefits than in 2009, with personal incentives, pension schemes and life insurance more widely available.

Recruiter beneﬁts When respondents were queried about benefits, the benefits most often available to consultants were team drinks and social functions (81%) and training schemes/days (77%) with strong take-up of both at, respectively, 86% and 80%. However, the benefit for consultants with the second highest take-up was personal incentives, with an 83% use rate. Technology benefits were also popular with consultants who were entitled to them, with take-up of company-

Consultant

Manager

London

£29,476

£55,851

Midlands

£25,045

£41,324

North

£29,286

£52,375

South

£26,725

£41,900

JULY 2013

10-12_Recruit_Digest_july13.indd 12

provided mobile phones at 74% and laptops at 73%. Company cars also went down well with entitled consultants for a 72% take-up rate. For managers, team drinks and social functions also ranked first for availability (91%) with company car placing second (79%), mobile phone slightly behind in third (77%) and home telephone or mobile phone bills paid by the company in fourth place (74%). But in terms of use by managers entitled to those benefits, take-up was highest of company cars (91%) and company-paid home or mobile phone bills (also 91%). Team drinks and social functions came next with a 90% take-up rate.

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WWW.RECRUITER.CO.UK

11/07/2013 16:39

Ricky Martin

The reality of setting up a recruitment consultancy In June 2012 I was fortunate enough to be announced the winner of The Apprentice and receive a £250k financial investment to set up a company of my choice in partnership with Lord Alan Sugar. For me, the decision of what I was going to do was straightforward. After graduating as a biochemist, I spent six years working in recruitment, so I decided to combine the two and set up my own scientific recruitment consultancy, Hyper Recruitment Solutions. Most people assume that setting up my own company would be straightforward, as, let’s face it, with my financial investment and a business partner such as mine, I had an exceptional head start. However, setting up a new recruitment consultancy in a challenging marketplace is no easy feat whoever you are. If you intend for it to be credible, professional and of course scalable, there is a lot more needed than just these two factors. The reality was that before, as an employee, I had the luxury of having an infrastructure

and operation at my disposal — which, if I am honest, I took for granted. So when setting up my own business, these quickly became some of my largest challenges to consider. I frequently get asked what is the hardest thing about setting up a company and, for me, it was the shock of day one. If you are anything like me, I enjoy working with people, so imagine the scene of going from being a billing recruitment manager in an established recruitment environment to one where it is just you, in an office, on your own! Naturally recruiters are people persons, so to start a company as the only employed member of staff (my business partner being a shareholder not an employee) is a big shock to the system. Turning up on day one is not just about plugging in and then getting on the phone; it is a harsh reality of configuring your PC, putting together a desk etc all on your own — all the things a recruiter can take for granted. So my advice to anybody looking to go out there for themselves is when making that first step, make sure you have planned thoroughly and be

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prepared to ask others outside your company for help. Are you happy to work every hour in a day on your own to start with? Are you happy to not just be a recruiter but also a marketer, accountant, HR person, operations manager, credit controller and so on? If the answer is yes, then good luck. Keep all of this in mind when going out there alone and don’t ever lose focus on why you are doing this. I am 12 months on from getting my business started and in that year I have learned more then I ever had in the previous six years of being an employee. I’m not going to say my business is exactly where I dreamed it would be but, in 12 months, it is further along than I expected and I’m excited about the future. Don’t forget, setting up a recruitment company is all about passion, drive and being prepared to go that extra mile. RICKY MARTIN is managing director and founder of Hyper Recruitment Solutions. Find out more at www.hyperec.com or @Hyperec_HRS on Twitter

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13_Recruiter_Martin_July13.indd 13

RECRUITER

JULY 2013

11/07/2013 08:45

Sector Analysis

Hospitality

Views from the market

BOTH AGENCY AND IN-HOUSE RECRUITERS FACE CHALLENGES IN THE HOSPITALITY SECTOR, WITH JOB GROWTH AND A NEED FOR TRAINING AND PARTNERING AMONG THE PRIORITIES In February, the news that coffee chain Costa received 1,701 applications for eight roles in a Nottinghamshire branch attracted national press attention — “highlighting Britain’s unemployment crisis”, the Daily Mirror ventured.

Craig Allen Sales director, Change Group

chief operations officer, tells Recruiter: “Currently, half of our UK restaurants are recruiting for hourly paid positions, but vacancies are filled incredibly quickly.” Quickly, but not without substantial groundwork from the company. “A persistent challenge when recruiting for our sector is that not everyone recognises the benefits a career in hospitality can bring,” Forte notes. McDonald’s is, in fact, keen to promote its learning opportunities, from apprenticeships to degrees – and the industry as a whole is keenly developing such schemes both to provide skills and an enticing employer brand. Employer brand has also been key for contract caterers Sodexo Prestige. Its ‘Be More Than a Spectator’ recruitment brand was designed for last summer’s Olympic Games and was key to senior HR manager Jo Morgan winning the In-House Recruiter of the Year category at this year’s Recruiter Awards for Excellence, sponsored by Eploy. And this brand concept has been maintained and is being re-used by the company for events throughout 2013. Staying in contact with staff hired in January for roles in the summer is vital in converting that proposition into feet on the shop — or restaurant — floor, HR director Sarah Perry tells Recruiter. There is a role here for agencies. With casual staff, “it is important to work with agencies that can give regular placements to their workers”, which ensures skill levels are maintained, Perry adds. Philip Atkins is the founder and managing director of events staffing, training and consultancy firm Off to Work, which worked with Sodexo during the Olympics. He suggests that post-Games, “investment in training has probably happened more… we have seen a willingness in people [ie. employers] to train and work in partnership”. Just when readers might have thought we had heard the last of the Olympic legacies, it seems that rising to the challenge of the Games has secured benefits for this industry.

The bigger story is job creation across hospitality: Costa’s owner Whitbread is looking at 12,000 roles by 2018, and this year also sees plans for 2,500 roles at McDonald’s, 1,600 at KFC (1,600), 1,500 at a new Center Parcs resort in Bedfordshire and 950 at TGI Fridays. Leisure & tourism and hospitality & catering have been among the strongest sectors in the Reed Job Index recently. But the REC/KPMG ‘Report on Jobs’, surveying demand for agency recruitment, found hotel & catering as the sector with the least growth in demand for permanent staff in June — and indeed every month bar February going back to September last year, and non-permanent demand has been far from overwhelming. The move towards in-house recruitment may account for some of this mismatch. “Companies are recruiting the easy positions themselves and only coming to agency for the hard-to-fill vacancies,” says Mike Gardner, operations manager at hospitality and catering recruiter Berkeley Scott. Gardner’s new business now comes from SMEs and start-ups, he says – and there are, as ever, too few cooks keeping the chef market busy. Overseas is a growth area for Craig Allen, sales director of Change Group, which recruits at the upper end of the hospitality market, particularly Singapore. “What’s going on there is crazy, like what happened in Dubai a little while ago,” he says. Back in the UK, Richard Forte, McDonald’s UK’s

COMPANIES ARE RECRUITING THE EASY POSITIONS THEMSELVES AND ONLY COMING TO AGENCY FOR THE HARD-TO-FILL VACANCIES

“Food has in the past five years I think become sexy. It’s on practically every TV channel every night in some form and a lot more people want to work in food.”

Philip Atkins Managing director, Off to Work “Scotland is going through a bit of a growth spurt at the moment — next year will be a big year in terms of the Commonwealth Games and the Ryder Cup.”

Tim Burrows Director of education and training, British Institute of Innkeeping “People will only regard pubs or bars as a safe home for their careers if the industry can offer continuous learning and progression through qualifications. Industry apprenticeships are one of the key first planks in delivering this.”

Richard Forte Chief operating officer, McDonald’s UK “We currently have vacancies for managers in all UK regions, but interestingly the South-East is receiving double the number of applications than the rest of the UK.”

SAM BURNE JAMES sam.burnejames@recruiter.co.uk

RECRUITER

In 2004, 4% of UK hotels and restaurants used zero hour contracts. By 2011 it had become the most frequent user of these contracts at 19%, ahead of health (13%) (From BIS’s Workplace Employment Relations Study)

JULY 2013

14_Recruit_SectorAnalysis_july2013.indd Sec3:14

COMPETITION FOR JOBS According to Totaljobs Barometer

CATERING & HOSPITALITY TRAVEL, LEISURE, TOURISM

APPLICANTS PER JOB

In June there were 15,390 jobs in hospitality and leisure available in the UK, 23% of these in London and a further 22% elsewhere in the South-East, at an average salary nationally of £21,145. Of these jobs 78% were full-time roles (From job ad search engine Adzuna)

25 20 15 10

Q3 2012

Q4 2012

Q1 2013

Q2 2013

TALENT RISKS? From the SHL Talent Report 2012 Travel & Leisure has poorer leaders today than most other sectors, ranking joint 15th out of 17 sectors. It ranks the poorest for possessing innovative talent, and the highest for possessing high levels of behavioural risk WWW.RECRUITER.CO.UK

11/07/2013 09:10

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10/07/2013 11:46

REC.07.13.016.indd 1

10/07/2013 11:48

Market Indicators

Global Spotlight on Ghana

ONE OF AFRICA’S SAFEST AND MOST STABLE COUNTRIES, GHANA IS SEEING SIGNIFICANT GROWTH — AND AS A RESULT IS NEEDING SIGNIFICANT TALENT “Ghana needs all of us here in this room,” Dr Mark Ankrah, managing director of the country’s State Housing Corporation, told Ghanaian expatriate and diaspora professionals at last month’s Ghana Careers Fair in London. “The key word for me today is ‘opportunity’,” he said. The opportunity: swapping dreary, downtrodden Britain for something more dynamic, making a difference to Ghana and advancing your career in a less crowded market. In terms of individual opportunities, the conference heard, there are plenty and in numerous sectors. “Africa has a role to play in the world,” Roland Agambire, the chief executive officer of Ghanaian telco firm RLG Communications, told the conference earlier in the day. Optimism, pride and that rhetoric of ‘making a difference’ were certainly important — beyond which there is a very practical aspect. “We’ve got to learn from what we have taken from the best, which is what we’ve got here [in the UK],” Agambire continued; talent offering skills honed abroad to Ghana are highly prized. Some of the country’s thirst for talent will be due to previous brain drain. But when Recruiter asks Sampson Dontoh, the HR director for West Africa at FMCG giant Unilever, if this is still a problem, he laughs. “The brain drain was about 10 years ago,” he says. “With the economy picking up, that has gone down quite drastically.” A bigger concern for Dontoh is the quality of Ghana’s graduates — he works directly with universities to better orientate teaching to business needs. “They are doing very well at progressing on this,” he says. “I think it is going to pay off in a couple of years.” Meanwhile, Maxwell Donkor, one of three founders of mobile job matching service mPawa, is focusing on the lower-skilled end of the market. The trio developed mPawa realising “that most

WHERE THE JOBS ARE

Views of Ghana Ghana’s capital Accra was named the fourth best place in the world to mix business and pleasure by the New York Times earlier this year. “Mobile technology is taking over the African market and Ghana is no different. Many persons in Ghana and Africa are mobile-first and probably will remain mobile-only.” Maxwell Donkor, cofounder, mPawa Among the major global firms, Randstad.com shows four jobs in Ghana as Recruiter went to press, but there is no other evidence of the bigger recruiters making their move. Depending on which data is used, Ghana is around 85th in the global ranking of economies by overall GDP, and 140th per capita.

artisans [blue-collar workers] in Africa don’t have written records of their work history, or any way to keep track of their work experiences”. While most tech innovations in Ghana have benefited the white-collar space, Donkor tells Recruiter, his will focus mainly on manpower in industries including agriculture, construction and hospitality. Alongside such tech innovation, “the demand for recruitment agencies has increased”, says Rachel Quarcoo of Accra-based agency Careers in Ghana, “and more agencies are springing up each day”. The agencies are becoming more sophisticated, she adds, and “now make a critical contribution to the training and development of employees”. She suggests better partnering with internal HR teams around succession planning and talent management is due to come next. And there is room for more agencies, be it on the ground or working remotely in the market. Sarah Fitzgerald, a director of UK-based recruitment firm Executives in Africa, says that with a relative lack of agencies for the roles they recruit, her candidates “are hugely flattered when they get a call through from a UK international search firm”. Fitzgerald describes the firm’s approach in Ghana as “mini search”, saying that headhunting “normally wouldn’t be cost effective” at the management levels they recruit for, especially given that much higher salaries and therefore margins can be seen in the nearby rival economy of Nigeria. Those salaries will rise in time, and more agencies will look to the market and perhaps office space in Accra. And as the country’s oil industry continues to grow, the brain drain will continue its emphatic shift into reverse gear. SPONSORED BY

SAM BURNE JAMES sam.burnejames@recruiter.co.uk

REGIONAL LEADER

Projected average job openings per ﬁrm, 2009-13 Sector

Jobs per ﬁrm

Agriculture

Business process outsourcing

Banking and ﬁnancial services

Artisan [blue collar]

Logistics

Industry/manufacturing

Trade/retail

Construction

Textiles and garment making

Import/export

Advisory/consulting

The Youth Employment Network and The International Youth Foundation’s ‘Private Sector Demand for Youth Labour in Ghana and Senegal’ (2009)

WWW.RECRUITER.CO.UK

17_Recruit_july13_Global spotlight.indd 17

Tertiary education enrolment rate (%) (World Economic Forum 2011)

Mobile phone subs per 100 population

GDP growth rate (%) 2011

(World Economic Forum 2011)

(World Bank 2011)

Labour force participation rate (%) 2011 (World Bank 2011)

NO. 1 QUALITY

71.5

75 60

FINANCIAL & ADMINISTRATIVE

55.1 54

47.6

42.8

45.7

SUPPORT AS AFFIRMED BY OUR AWARD-WINNING CLIENTS

30 15 0

8.6 10.1 6.3

■ Ghana

14.4 7.4

4.7

01 260 280 290 www.backofficesupportservices.co.uk

■ Nigeria

■ Sub-Saharan Africa RECRUITER

JULY 2013

11/07/2013 08:49

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REC.07.13.018.indd 1

10/07/2013 11:49

Soapbox

Showing 46m people the way to work PRIVATE EMPLOYMENT SERVICES EMPLOY BEST PRACTICE TO BUILD BETTER LABOUR MARKETS RIGHT ACROSS THE GLOBE

Opinion

SOAP

BOX

At this time of great economic uncertainty, unemployment levels remain high, and employers and employees find themselves having to adjust to a hyper-technical world where flexibility and agility are key. Business and individuals’ anxieties around shifting labour market conditions are resulting in multiple calls for action, and this is where private employment services (PrES) come in. As an industry, we have a significant role to play in helping address these concerns and are already rising to the occasion. One year ago, Ciett — the international confederation of PrES — cemented its ambition to build a better-functioning market by developing a series of pledges on members’ behalf. The PrES industry is now publicly committed to achieving the following five measurable standards worldwide, before 2017: • Support 280m people in their job life • Help 75m young people enter the labour market • Upskill 65m people, giving them more work choices • Create 18m more jobs • Serve 13m companies with the right talents to succeed One year into our five-year commitment, we are fast approaching these ambitious targets. In the past 12 months, we have made great headway in addressing pressing challenges highlighted by the International Labour Organisation (ILO). We can report that over the course of one year, the PrES industry has supported 46m people in their job life (93% of target), helped 12m young people (93% of target), up-skilled 11.6 m people (93% of target), created 3.1m new jobs (97% of target) and served 4.5m companies (100% of target). We believe these pledges light the way, with early results proving the significant contribution employers and PrES can make together towards healthier global labour markets. We feel we are effectively supporting ILO’s Decent Work Agenda, via job creation, encouraging social dialogue, improving social protection and guaranteeing workers’ rights. In particular, the pledges demonstrate the capacity of the industry to secure job opportunities for under-served youth (under-25s represent 26% of agency workers worldwide) and lower-skilled demographics. This is an essential role given that ILO projects global unemployment will reach 12.6% in 2013, representing an increase of 3.5m young people since 2007 .

WWW.RECRUITER.CO.UK

19_Recruiter_soapbox_Jul13.indd 19

Global promise This first set of results indicates both change and promise for the global labour market, and we are confident more progress will be made once appropriate regulatory frameworks are set up in more countries. If you look at Tunisia, for example, a national trade union (UGTT) is currently holding back all forms of discussion regarding the country’s adoption of industry regulation, while in Russia and Turkey, PrES are still calling for basic regulation based on ILO Convention 181 on private employment agencies to be rolled out. Establishing and maintaining consistent PrES industry regulation worldwide is vital and a balance must be reached between the need for organisations to adapt to change, and workers’ participation and protection — essential for the sustainable growth of the PrES industry and for global socioeconomic improvement. Governments must recognise that the international instruments of hard law must translate at national level, through legislation, CLAs [collective labour agreements] and so forth and the influence of soft law — recommendations, guidelines, codes of conducts and international framework agreements (IFAs) — must be considered for their countries’ growth. To aid its mission, Ciett calls for appropriate, simplified PrES regulation worldwide. Appropriate regulation will help us on our journey to achieving Ciett’s ambitious targets, but we also see new opportunities for the industry as businesses continue to have increasingly specific demands for skills and talent.

Talent demands remain In Europe and North America, as well as in emerging markets like Russia, the need for highly-skilled staff, largely in response to skills shortages, increases. This presents growth opportunity for our industry, as we are proven to enable better and faster matches between supply and demand of labour, securing more work opportunities for more people and so building a stronger supply of skilled workers, and ultimately building better-functioning labour markets. Considering various on-going ‘macro’ difficulties, it is perhaps unsurprising we have not achieved 100% of our Ciett pledges. However, these targets were designed to be ambitious and having set a high bar, it is positive to have made so much progress still with four years to go. Efforts towards fulfilling these pledges complement Ciett’s overarching vision: ‘The way to work: a job for every person, a person for every job’. Via the pledges, our members are measurably supporting millions of businesses and individuals, and governments, in achieving decent work for all. There is ample time left for Ciett to wholly fulfil these pledges, and even with us playing a long game, initial figures are extremely encouraging.

DENIS PENNEL is managing director of Ciett and Eurociett and a labour markets expert. Ciett is the International Confederation of Private Employment Agencies, consisting of 48 national federations of private employment agencies and seven of the largest stafﬁng companies worldwide.

RECRUITER

JULY 2013

11/07/2013 14:11

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REC.07.13.020.indd 1

10/07/2013 11:50

Opinion

Letters Education must surpass business THIS IS IN REFERENCE to the 21 June 2013 article published on •recruiter.co.uk, ‘Education can never catch up with world of work, says

CIPD chief’. In contrast to CIPD’s chief executive ofﬁcer Peter Cheese’s view, I hold a very different opinion. In many ways education is linked to the professions (take medicine or law, as an example). But the connection to business — to keep skills current — is not working as well as it should. The appetite from government to improve this seems apparent — supporting a move to employer-led education and training. This marks a shift away from skills dictated by training companies that receive government funding but do not meet the needs of employers or their learners. I believe there could be a scenario where education could not only catch up with the pace of work, but also surpass it, with learners having skills in emerging technologies or services. Filling skills shortages and following future trends lie at the heart of education and research. This is a challenge that educators must meet in close partnership with employers. Working with employers on refreshing curricula regularly, and knowing where skills gaps may emerge, is a moving target that can only be met through close open partnerships between business and educators. One such innovation was the proposal by Lord Young in his recent government report entitled ‘Growing your Business’. In this report (of which all its recommendations have been accepted for implementation by the prime minister), one interesting idea was to make more use of business schools. These will now be better utilised to offer training guidance to entrepreneurs, ensuring business leaders have cutting edge knowledge of trends and successful business practices worldwide. To be successful, Ryanair and other British airlines deeply explored and learned from a Harvard Business School case study on how (USbased) Southwest Airlines ran a low-cost airline. This demonstrates how important education can be if it’s relevant, up to date, and businesses are engaged with business leaders when conducting research and constantly refreshing curricula. Azmat Mohammed, director general, Institute of Recruiters (IOR)

In praise of specialised bodies In your story ‘PageGroup voices support for trade body mergers’ (recruiter.co.uk, 20 June), in my personal opinion when Andrew Sweeney says “Bringing the trade bodies together may end up being less efﬁcient because in trying to meet the needs of everyone you end up pleasing no one because it is too generalist”, I cannot agree with him more. Working for an independent SME specialist IT/ERP recruitment business I would suggest that to gain maximum value from a recruitment trade body for our business as well as our clients and candidates, a specialist provider requires a trade body that can provide relevant specialist information for their sector of the market, who can react quickly to requests, is innovative and provides a high quality and personal service to its members. In my experience these trade bodies tend to be smaller organisations, with whom for these very reasons many specialist recruiters are members. Larger generalist recruitment trade bodies tend to be less able to react quickly or understand sector specialists needs and therefore struggle to provide relevant information and the kinds of support that a specialist business may require. Within a larger trade body you can deﬁnitely get lost in the crowd. Lisa Finch, Square One Resources

WWW.RECRUITER.CO.UK

21_Recruiter_Soundbites_july13.indd Sec3:21

Soundbites

“What impact will the further cuts in public sector jobs and the 1% cap on public sector pay rises have on the overall talent landscape?” Sepi Behvandi Senior recruitment consultant, Total Assist Group

In my opinion, the British government is likely to raise taxes after the next election as it struggles to cut public spending further. While NHS budgets are ‘ringfenced’ in real terms, NHS Trusts will be working with lower budgets, putting an even bigger strain on health service demands. As a medical recruitment agency, we recognise the need for the NHS to make efficient use of its budgets and we’ll continue to work with all trusts to realise the efficiencies and savings that they need.

Mike Bishop National recruitment director, HR, Ricoh UK & Ireland

Most public sector employees will now feel slightly punch drunk at the continual movement and changes in this sector. More than likely this will force a change in their focus to private sector roles. What this should mean for private sector employers is a slight, but not substantial, increase in skilled and disciplined individuals in their talent communities. Sadly, for some corporate employers, now is an opportunity to obtain strong candidates below that market rate and look to potentially exploit situations, driving overall candidate market value down over time. Should this be avoided, then we could very much see an uplift in highly skilled private sector employees.

James Uffindell Chief executive officer and founder, Bounty Network

Public sector job cuts and the pay rise cap should mean a greater supply of talent to the wealth-generating private sector. As the public sector becomes less appealing due to the volume and relative pay for work, candidates will be forced to increasingly look for private sector roles. This extra supply should be a good thing for companies looking to hire the best talent. The challenge for jobseekers will be to make sure their public sector skills are transferrable and relevant.

IF YOU HAVE A LETTER OR WOULD LIKE TO BE A CONTRIBUTOR TO SOUNDBITES, EMAIL... VANESSA.TOWNSEND@RECRUITER.CO.UK

RECRUITER

JULY 2013

11/07/2013 16:29

When we looked into recruitment software Itris stood out. We have been delighted with the straightforward installation, painless migration and reliable support throughout the process. The intuitive front-end and functionality available has freed up valuable time for us to do what we do best. Recruitment consultancies of all kinds choose Itris Recruitment Software because it adds value to their business. It delivers total functionality and a high level of integration with third party applications, without the need for additional modules or conﬁguration. Inspired by recruiters, Itris can easily be conﬁgured by you with no specialist training needed. It’s built on the highly scalable SQL Server platform so it can grow as your business grows. Our total system support will help you maintain a competitive advantage and ensure it’s always working for you. And best of all, upgrades to new versions are included as standard. It’s the total package, and probably the most cost-effective investment you can make for your recruitment business today. 0845 680 0660 www.itris.co.uk

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Recruitment Matters Issue 17 July 2013

Trade Association of the Year

What’s inside The 2 -3 Intelligence and REC talk Kate Shoesmith considers the skills deﬁcit, and Tom Hadley and Kevin Green discuss youth employment strategies Dr Deirdre Hughes (2nd left), chair of the National Careers Council, and Matthew Hancock, minister for Skills, with delegates at the launch of ‘An Aspirational Nation’.

Skills for the future: new report offers advice to the careers sector Last month a report focusing on the skills gap among young people was launched by the National Careers Council, formed last year to advise the government on careers matters following two years of cuts to careers support. The report, entitled ‘An Aspirational Nation’, suggests that there is still plenty of work to be done by businesses, the government and educators if young people are to acquire the skills and attitudes needed to ﬁll the many positions currently left vacant by employers looking for the right people to ﬁll them. Skills minister Matthew Hancock said: “Last year we created the National Careers Service to provide professional advice, and give schools and further education colleges a powerful new responsibility to secure independent careers guidance for their students. “This report sets out an ambitious new path for how careers guidance needs to progress – to inspire, motivate and inform.”

Among the recommendations made by the NCC were several encouraging the greater involvement of the employment sector, including the volunteering of staff to give job presentations at schools and colleges, and a new scheme aimed at promoting character and resilience in a successful working life. As our investigation on pp4-5 shows, the recruitment sector can contribute hugely to this type of careers support by helping to give young people the skills they need to get ahead, by giving presentations, teaching potential employees about how the jobs market works and encouraging employers to do the same. Dr Deirdre Hughes, chair of the council and writer of the report, said: “It falls to the careers sector to make sure that both young people and adults get the help they need. Together we can create a movement to bringing about a much needed culture change in careers provision for young people and adults.”

Getting the 4-5 message out there We look at how recruiters can help engage with young people

Legal Update and Business Matters

The legal lowdown on employing young people and specialist accounting

Institute of Recruitment 7 Professionals We speak to Trevor Pinder, winner of Executive Search Consultant of the Year at the IRP Awards, plus tips from Katie Bancroft, managing director of Exceptional Solutions

The best events and training

The best in-company training and the Recruitment Business Toolkit

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Leading the Industry

the intelligence Centre have estimated that we will need 104,000 graduates and 56,000 technicians in STEM subjects (science, technology, engineering and manufacturing) by 2020. This led the Social Market Foundation to forecast that one in ﬁve of all young people would need to go into engineering between now and 2020 to meet future demand. If we are to meet these challenging targets, we need to encourage more young people into these sectors. As our Youth Employment Taskforce found, this means better careers guidance from an early age, preferably before 14, and a school curriculum that really engages young people in these industries. A particular issue here is how we encourage more girls into the sector – Engineering UK reported late last year that the UK has fewer female engineers than the rest of Europe. The second part of the challenge is making sure the training delivered while at university or on an apprenticeship is relevant to industry. Labour market information, like that provided by ‘Report on Jobs’, should be part of that equation so that training programmes are adapted to meet the current needs of industry, not yesterday’s needs.

Demand for staff 50 = no change on previous month 75

Increasing rate of growth

■ Temp/contract vacancies ■ Permanent vacancies

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Increasing rate of decline

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■ Change in turnover per employee 0 ■ Annualised turnover per employee -40 Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr 09 10 11 12 13

Fig 2: Median permanent placement salary 90

This month’s ‘Report on Jobs’ highlights once again why it is so important to address our skills deficit in the UK. Demand for permanent and temporary workers has continued to rise steadily, and once again the strongest growth was in the private sector. A similar picture was reported by the Office for National Statistics, which reported job vacancies up 8.6% on an annual basis in the three months to April. So it seems that the green shoots of economic recovery are emerging at last. At the same time, however, we also saw that there was a marginal decline in the availability of candidates for permanent positions in May. Those industries where demand was highest were hardly surprising – engineering, healthcare professionals, and IT topped the list once again. Whilst average demand for permanent placements was a healthy 54.3 on the vacancy index in May, in engineering it was far higher at 61.4. Those with the right qualifications and skills are highly sought after and this is a trend that is likely to be exacerbated in the future. The Royal Academy of Engineering and the Big Innovation

£000s

Kate Shoesmith, head of Policy & Public Affairs at the Recruitment & Employment Confederation (REC), considers the skills deficit

£000s

Fig 1: Annualised turnover per employee

Mind the gap

10 ■ NDR per employee growth 40 ■ Median NDR per employee 20 Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr 09 10 11 12 13

Increasing productivity This month I want to look revenue productivity, or ‘revenue per employee’. Figure 1 shows that median annualised revenue per employee in April this year was at its highest level for nearly three years – since August 2010 to be exact. As the red line shows, median annualised turnover per employee is now 10% higher than a year ago – an excellent performance in the current challenging economic climate. Figure 2 shows that median net disposable revenue (NDR) per employee is only slightly higher than a year ago. However, we need to understand why NDR margin is falling. Temp is the best performing revenue stream for recruiters at the moment, but because it has the lowest NDR margin due to the recruiting company paying the temporary workers, this is diluting the overall recruiter NDR margin. In conclusion, recruiters are demonstrating their own wise business acumen by controlling their own headcount in these challenging economic times, to increase their revenue productivity and maintain profitability. • 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..

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www.rec.uk.com 10/07/2013 10:55

Leading the Industry

Youth Avengers, assemble! Tom Hadley, the REC’s director of policy and professional services, takes a look at the successes of the Youth Employment Taskforce

The View

The priority now is to build on the progress made. The recent REC ‘Skills Summit’ was the latest milestone and we are gunning for a target of 500 members signed up to our Youth Employment Charter by the end of the year. The input and drive of REC and IRP members will ensure that our industry remains at the forefront of the youth employment debate. Nick Fury would be proud!

We were delighted to launch Apprenticeships in Recruitment at the Skills Summit last month after an extensive year-long development project. This is a hugely important move by the REC on behalf of the industry. Firstly, attracting more bright young people to the industry has been a long-term objective for the REC. Recruitment is a people-based sector and so attracting high calibre talent to the industry is a critical component of growing our businesses. We have also long aspired to reposition our industry as part of the professional services community and so making recruitment a career of choice is an important stepping stone towards this aspiration. As an Ofqual-registered body we give young people a robust qualification as well as rigorous on the job training and the scheme is also a great way for you to help your business grow and develop. Secondly, it builds upon our Youth Employment Taskforce, which recommended that as an industry we should set up an apprenticeship programme so that we could play an active role in getting some of the one million young people currently not in work or training into employment. This demonstrates to all our stakeholders that we are playing our part in alleviating the youth unemployment crisis. We are developing a training provider network to deliver our new apprenticeships. This gives us the geographical coverage needed to support your organisation in taking on a new apprentice. I hope you seriously think about bringing in some young talent to your business and that together we can hire the recruitment capability to take our industry to the next level over the next decade. I am always keen to visit members, if you want me to meet your staff or clients just drop me an email on Kevin.green@rec.uk.com. Also if you want the inside view of what’s going on in recruitment then follow me on twitter.

• You can follow Tom on Twitter www.twitter.com/@hadleyscomment

• You can follow Kevin on Twitter www.twitter.com/@KevinGreenREC

In 2010 we launched our Youth Employment Taskforce – a kind of ‘Avengers Assemble’ dream-team of employers, recruiters, academics, think tanks and education experts, chaired by Baroness Prosser. Three years on, it is time to take stock of how our work on youth employment issues has benefited the industry as well as individual recruitment agencies. 1. Making a difference on the policy front Progress has been made, for example, in promoting apprenticeships. But huge gaps remain in areas such as careers guidance and employer awareness of initiatives such as the Youth Contract. We will continue to put forward practical solutions through our ongoing dialogue with the Employment Minister Mark Hoban and monitor what is happening on the ground. 2. Driving industry recognition Positioning the industry as a voice on youth employment has helped to create a step-change in recognition from government, business and the wider community. Being proactive and positive on key issues of the day builds credibility. 3. Showcasing the positive role of recruiters REC members have been working with local schools and colleges to help raise awareness of the world of work. Over three hundred members have signed up to our Youth Employment Charter, which showcases some of the specific activities and initiatives currently being taken forward. 4. Boosting client relationships For individual agencies, being a youth employment ‘activist’ can create direct benefits in terms of deepening client relationships. A number of recruiters are already working with their clients to deliver apprenticeships and to review current recruitment procedures and criteria in order to provide more opportunities for young jobseekers. 5. Bringing new talent into recruitment As well as working with clients to attract new generations of talent, recruiters are increasingly keen to attract young jobseekers with the right mind-set and skills into our own industry.

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Recruitment Matters July 2013 3

10/07/2013 10:56

The Big Talking Point

Getting the message out there Careers advice is ‘on life support’, says the CBI. How can recruiters help, asks RM editor Francesca Steele

“T

here is no security in life, only opportunity,” wrote the author Mark Twain. For young people entering the British workforce in recent years, a lack of security will certainly have occurred to them – but many will feel that the opportunities are sadly lacking. The latest figures on youth employment, show that nearly one million people aged 16 to 24, not including those in higher and further education, are not in work. In fact, this figure – 950,000 young people, according to the Office for National Statistics – has fallen by 43,000 in recent months – but, as the definitive report released recently by the National Careers Council shows, there is still much work to be done. The study, ‘An Aspirational Nation’ (we report on its launch on page 1), suggests strongly that solutions to the problem are to be found not just in government measures but in the whole of the employment sector coming together to educate and encourage young people so that they acquire the right skills and attitudes needed by employers. Despite so many young people looking for work, employers say they are nonetheless struggling to find people to fill roles. According to a survey by the Confederation of British Industry, 39% of employers admitted they were struggling to recruit workers with the advanced

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scientific, technical, engineering and maths (STEM) skills they needed. A further 41% expected to face these difficulties within the next three years. Communication, and therefore careers advice, say experts, is at the heart of the problem. Speaking at a schools conference recently, John Cridland, the CBI director general, said the educational careers advice support system was “on life support” and that young people were being hit by a “double whammy” of slow economic growth and a rapidly changing labour market. But what can recruiters do? Nick Chambers, director of the Education & Employers Taskforce, says acknowledging that this skills gap exists is the first step.

“It’s very easy to blame young people and assume that they are not doing enough,” says Chambers. But they are entering a very tough jobs market. Not only are they competing with experienced workers for fewer jobs but the range of jobs and of educational options, or apprenticeships or training

Case study: Ben Mannion, strategic development director at Hewitt Recruitment We have been heavily involved in a local scheme called the Rotec Academy, which will be run by Rotec Engineering, in association with South Worcestershire College and the local council, and which will take on young people giving them training on the job. They will spend two and half days in college, and the rest of the week learning on the shop floor from experienced engineers. It is anticipated that the students will then fill one full-time job and two part-time positions each year. We are helping to promote the scheme to local employers. The overriding response has been very positive. The benefit for the employers is two-fold. Not only are they helping to train people in skills they very much need – they are also introducing young people to the world of work so that they understand the work place before they start full time. One of the things we hear most frequently is how illprepared young people are for the workplace in terms of attitude. So this helps enormously with that side of things.

www.rec.uk.com 10/07/2013 10:57

Getty Images

and so on, is far greater than it was in their parents’ generation. “They are facing a very complex series of choices, some of which of course have financial considerations, like university, and it can be very difficult. Obviously the fact that there is a greater range of jobs is a good thing in many ways. But for young people it can be very difficult to know what to do.” ‘An Aspirational Nation’ has suggested an expansion of the National Careers Service, which was set up last year, calling for face-to-face advice to be available for all pupils from the age of 12, rather than providing advice via a phone line or website. The careers service itself is described in the report as a “well-kept secret”, with many youngsters not aware of the help available. There were 34,000 phone calls received by the helpline service in the year to March 2013 and similar numbers of emails, web chats and texts, from an

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age group of more than four million youngsters. Face-to-face advice from the National Careers Service is not available to young people and is only offered to adults. This, says Chambers, is something that recruiters can get involved in. “Good recruiters really understand what employers are looking for, so if they can go into schools and universities and tell people what they are looking for, that’s invaluable.” Many recruiters have, of course, already contributed – the REC’s Youth Employment Taskforce has been running since 2010, encouraging recruiters to speak at schools, assign a youth employment ‘activist’ at individual agencies, and so on. But further communication is still needed, as one REC member, Isobel Brown, head of Scotland at DP Connect, outlines below. In addition, experts say, recruiters must clarify with prospective employees and job-hunters speciﬁcs such as potential fees and the precise skills employers are likely to need for speciﬁc roles. A recent survey by Pearson, the education group, shows that young people have unreasonable expectations about skills and pay, with a third of all secondary school pupils surveyed (37%) used television programmes to help them decide what jobs they might like to do. Recruiters can take advantage of existing programmes to help in this regard, either by offering advice themselves or by encouraging employers or employees to participate. Inspiring the Future is a free service co-ordinated by the Education and Employers Taskforce, with volunteers from all sectors and professions going into state secondary schools and colleges to talk about their jobs and sectors. Anyone can volunteer, be they an apprentice, graduate recruit or an experienced chief executive. Under the youth contract scheme launched last year, the government also offers incentives worth £2,275 if employers recruit young people – the take-up has so far been underwhelming, but recruiter can help make clients aware of the possibilities available. Isobel Brown (she gives us her tips

How to give good career advice • A lot of graduates come out and have preconceived ideas about salaries. Be realistic with them about what’s out there. And the skills they will need to start. • People need to know how to present their CVs. Lots of people just put their education and exam qualifications but don’t give details about the exact nature of their courses. They might have done placements or practical days that they can include. In a competitive market people need something to differentiate themselves. • Tell people about emerging markets. For example, in IT, there are lots of great opportunities working in Cloud programmes (mobile data sharing) that people could develop better skills for if they knew about it in advance. There are lots of similar things, in IT and engineering in particular. Those markets move so quickly that it’s important to advise prospective employees correctly so that they don’t spend two years learning a skill that is soon to be redundant or far less lucrative. • Some recruiters are too client-driven and focus less on the candidates because they don’t pay the bills. For me it’s all about the three C’s: clients, candidates and colleagues. Anyone who ignores one of those things will struggle later down the line when that becomes the bit that’s in demand. Isobel Brown, DP Connect

on career advice above right) recently contacted all the major Scottish universities to arrange to offer free career advice to its undergraduates. She only heard back from one. “I think possibly it’s a breakdown in communication,” she says. “Sometimes educators don’t think beyond the qualiﬁcation in question and not on to their pupils’ futures. That’s why it’s so important for recruiters to help. For many businesses the problem is as much about attitude – getting to work on time and good teamwork – as it is about skills. Recruiters can really help explain that.”

Recruitment Matters July 2013 5

10/07/2013 10:57

Legal Update

Are there any specific legal requirements when it comes to employing young people and children? Chris Cuckney, REC Legal Advisor, explains There are speciﬁc rules relating to the employment or engagement of children and young people. ‘Children’ are deﬁned as being under the minimum school leaving age and ‘Young persons’ are workseekers under 18 but over the minimum school leaving age (ie. aged 16-17). The main provisions are found in legislation that dates back to the 1930s. However, local authorities can pass bylaws that place further restrictions on the hours and working conditions for children and young people. It is therefore advisable to always contact your local authority to check the local bylaws before employing or engaging a child or young person. Anyone wishing to employ or engage a child will need to contact their local education authority to see whether they will grant a work permit; this permit will specify the employment conditions that must be observed. Health and safety The Management of Health & Safety at Work Regulations 1999 (MHSWR) states that risk assessments must be carried out before any individual under the age of 18 starts work; and the risk assessment

Chris Cuckney

must take particular account of: • the inexperience, lack of awareness of risks and immaturity of young persons; • the ﬁtting-out and layout of the workplace and the workstation; and • the extent of health and safety training provided or to be provided to young persons. Whether you are employing children and young people or supplying them out to clients as temporary workers, you must take particular account of the above three factors. Where an employment business is supplying young workers to clients, it is imperative that they work closely with the client to ensure they meet their respective statutory responsibilities and that a young worker works safely. Certain types of work are prohibited for workers under the age of 18, including work which is beyond their physical or psychological capacity or where there is a health risk from extreme cold, heat, noise or vibration. Working Time and rest breaks Under the Working Time Regulations 1998 (WTR), young workers (who are deﬁned under the WTR as being between the ages

of 15 and 18 and over the compulsory school leaving age) cannot ordinarily work more than eight hours a day and 40 hours a week. Unlike adult workers, these hours cannot be averaged out and there is no opt-out available. Similarly, daily and weekly rest periods for young workers are different to those of adult workers. Pay Young workers are also entitled to a lower national minimum wage rate. Currently workers aged 18-20 must be paid a minimum rate of £5.03 an hour, and workers aged 16-17 a rate of £3.72. Similarly apprentices are entitled to a rate of £2.68. Under the Conduct of Employment Agencies and Employment Businesses Regulations 2003, where a work seeker is under 22 years old, the employment businesses must keep a record of their date of birth. Ultimately this is a very quick run through of the issues surrounding the employment or supply of young workers and further guidance will be required. REC corporate members can contact the legal team to discuss these issues.

Business development: A more individual accountancy service Working as a contractor can be rewarding but it can also require more specialist knowledge that many people are aware of. PlanIT Services is a chartered accountancy firm dedicated to contractor services. “The specialism has become important increasingly as employment law and tax law and the interaction of the two have become more complex,” says Adrian Learer, managing director (pictured above). “There’s now so much to know but there is still a lot of ignorance and inefficiency in non-specialist firms.” The typical high street accountant, he adds, wouldn’t offer a

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range of services only the traditional model. “The starting point for us is to speak to the contractor, and advise them as individuals. What works for one person may not work for another. It is a very different approach. “Say you have someone who goes to a more traditional accountant, and says I want to run my own company. They then offer them the exact solution they have requested. But we look at all their circumstances to ﬁnd out whether the scenario they have suggested is in fact the most efﬁcient for them. “ There is no price for an initial consultation. • For further details visit http://www.planitservices.co.uk

www.rec.uk.com 10/07/2013 10:57

Inspiration

Behind the scenes at the Institute of Recruitment Professionals

View from the top This month we speak to Trevor Pinder, who won Executive Search Consultant at the 2012 IRP Awards Name: Trevor Pinder Agency: ITHR Group Years in recruitment: 16 years Specialism: Contract and Technology How did you get into recruitment? I left school with no qualifications, went travelling and then started on a building site. Recruitment found me really – and then I developed a passion for it as I went along. Has it changed much since you started? Completely. In something like technology, someone with a skills set that was useful three years ago could well be obsolete now. And certainly over the period of time that I’ve been working, the type of consultant has to be a hundred times more professional than they did then. Why do you think the judges picked you? One of the things they said was that I was prepared to sacrifice my own success for the benefit of the company. My ethos has always been that my team is an extension of myself. For example, I’ve developed a modular training plan. I give two training sessions each week, where I mentor and coach junior managers. What do you teach in the sessions? Topical things. For example, we analyse where we’ve been strong and where we’ve been weak. You should have a framework when you’re teaching but never a rigid blueprint. What is the biggest weakness you notice in team-members? The biggest weakness, in general, is that decent billers who get promoted to management level then try to create a team in their own image. But building a team is like putting together a jigsaw: no two pieces are the same. You’ve got to respect people’s own way of doing things sometimes. What would you do if you weren’t in recruitment? I’ve got a passion for training and developing people so I’d probably have been something like a football coach for children or a teacher.

Things I Know Katie Bancroft, managing director of Exceptional Solutions, talks about her career and tips for the industry Recruitment isn’t about fees; it’s about people We try to really listen to what clients really need. We don’t commit to things right away. We go away and work out what they need, before presenting them with a list of how they could change. Some people want us to be on site; others don’t. It’s a very unique offering that is always tailored to the individual. Clients understand us better than the public I think clients are slowly being re-educated about how useful recruitment can be, but by and large, recruiters are still seen as a bit of a headache. They think it’s about making quick money and not about listening. Whereas actually the reverse is often true because good recruitment is where growth starts. Working for yourself is never how you imagine Most people probably presume that anyone setting up their own business wants to be quite dicatatorial. But I try never to talk down to people in my team. It’s important to me that we are all sort of equal and I consult other people a lot. Of course, then sometimes you have to change tack if someone takes advantage of your attitude and doesn’t pull their weight. It can happen. The biggest mistake I’ve ever made was doubting myself You have to believe in what you’re doing. If you get up every day and don’t enjoy what you’re doing, it comes across to everyone you’re dealing with. The biggest problem with young people is core values All the clients I work with are committed to giving young people opportunities. But the thing they see consistently is people with unrealistic outlooks, not wanting to work harder and so on. It’s not just about skills but about attitude.

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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Don’t move – we’ll bring the courses to you The REC runs in-company training courses, where you pick the courses, the location and the date, and the REC then tailors the course to your needs. Here, some REC members tell us about their experiences

Huw Martin, managing director, Head Resourcing “We’ve used the REC for a number of years for training up our recruitment teams. It used be a bit ad hoc but now we’ve made it part of our formal people management. I always know we’re going to get better results when our employees have attended a course. We do Proactive Business Development, Recruitment Essentials and Essential Management. As long as people implement and follow up they do always improve. Before, training felt like ticking a box to me, but because we now have follow-up sessions with individuals to work out how to implement the lessons they’ve learned, we’re actually seeing demonstrable results. We’re trying to upscale our team with the right values rather than just sell more.

Ella Snowball, managing director, Recruit4health “Andrew Carr from the REC comes to train our staff every quarter. He knows our company inside and out. One of the courses we do involves learning negotiating and telephone skills, which is really useful for us because we are candidate-led and do a lot of work on the phone. We learn how to ask open questions, to let people talk rather than bombarding them with lots of questions. Our employees are given homework: they have to win someone over after the course and then come back and explain how they did it. We always notice a difference after Andrew has been in – our ﬁgures often peak two weeks later!”

Recruitment Matters The official magazine of The Recruitment and Employment Confederation Dorset House, 1st Floor, 27-45 Stamford Street, London SE1 9NT Tel: 020 7009 2100 www.rec.uk.com

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Corbis

Events and training

Everything you need to run your recruitment business in a box The Recruitment Business Toolkit has been created for recruiters, by recruiters and contains all the key documentation, templates, advice guides and support materials to help you run, grow or start-up a successful recruitment business. The REC has worked closely with experienced consultants, mentors and recruiters to make sure that the toolkit is just the right mix. With something for every step of the way, it includes: business, policy and ﬁnancial templates; marketing and credit control advice; negotiation, process and business development guides; legal and HR policies, and all the critical information you need to be on track and thrive. And over the summer we are running a special promotion on the toolkit with REC Members being able to purchase the Toolkit for just £250 (normal price £595) and non REC Members for £595 (normal price £995)*. Offer ends 30th August 2013, call quoting RBA RM Summer Offer to get yours today. • Call 020 7009 2100 for details. * All prices exclude VAT

Who is it for? • Start-Ups – Crucial information and templates, leaving no stone unturned • Branch managers – Essential resource focused on all aspects of running a branch • Business owners – Must-have set of documentation to establish robust and comprehensive business systems for all parts of the company

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: Anne Sadler anne.sadler@redactive.co.uk Tel: 020 7880 6213 Consulting Editor: Ed Sexton ed.sexton@rec.uk.com Editorial: Editor: Francesca Steele francesca.steele@redactive.co.uk. Production Editor: Vanessa Townsend Production: Deputy Production Manager: Kieran Tobin. kieran.tobin@redactive.co.uk Tel: 020 7880 6240 Printing: Printed by Southernprint © 2013 Recruitment Matters. Although every effort is made to ensure accuracy, neither REC, Redactive Publishing Ltd nor the authors can accept liability for errors or omissions. Views expressed in the magazine are not necessarily those of the REC or Redactive Publishing Ltd. No responsibility can be accepted for unsolicited manuscripts or transparencies. No reproduction in whole or part without written permission.

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Insight

The human touch to volume recruitment VALUES, PERSONAL COMMUNICATION AND COMPASSION ARE VITAL FOR SUCCESSFUL VOLUME RECRUITMENT When it comes to volume recruitment, most organisations pressured by costs, resources and time constraints focus on process and technology to deal with the sheer quantity of individuals involved. Blanket attraction strategies and automated candidate processing take precedence, and high attrition rates are viewed as inevitable. To avoid the subsequent damage to service levels and brand made by impersonal mass hiring strategies, organisations need to rethink the start point of the recruitment journey. Volume resourcing should be defined by the candidate and the organisation’s core values, with technology as the enabler, not the driver. Only by establishing a clear picture of the skills and attributes of the ideal candidate can the best resourcing strategy — incorporating values, attraction tools and selection criteria — be applied.

Putting values up front Volume recruitment programmes in the retail sector, for example, often focus on hiring individuals for customer-facing roles. Selecting applicants for their compatibility and responsiveness to company values should be an intrinsic part of the process. Only by treating candidates as individuals can employers hope to transform volume recruitment from a costly, low-value, high-churn transactional process into a values-led, service-driven operation.

Lessons from Kiddicare Much can be learnt from the recent volume recruitment programme Independent undertook with infant retailer Kiddicare, where company values, personal communication and compassion permeated each stage of the process. In this case, the values of community, family and passion for the customer were emphasised at the screening stage and during assessment centre activities. Whether candidates had previous experience in retail was seen as secondary to cultural fit and the attributes necessary to deliver service quality.

CANDIDATE COMMUNICATION IS OFTEN THE FIRST CASUALTY IN HIGH-VOLUME RECRUITMENT

Keeping it simple In this age of technological sophistication, we assume that the best way to reach candidates is through an elaborate web of attraction tools that must always involve social media. But sometimes the simplest strategies are the most effective. For Kiddicare, the target audience was reached through store-front banners and advertising at bus stops and cafes, as many did not have online access. Whichever media organisations are recruiting through, the approach needs to be focused and clear. Initially, communicating the nature of the roles and values required also allows for ‘natural deselection’ so that those reaching the screening stage have the right attributes and availability.

Communication and consideration Regular, personal candidate communication is often the first casualty of high-volume recruitment. Frequent and considerate candidate communication helps allay concerns and answer queries. For those organisations where customer base and candidate pool overlap substantially, this also has a significant impact on consumer goodwill and trust. The effectiveness of this approach was evident on the Kiddicare project where a personal contact was available for questions and feedback throughout the recruitment process. Reminder calls (as opposed to text messages) were made before each recruitment event. Assessment centres were always referred to as ‘recruitment events’ to put candidates more at ease and minimise fears about performing. Absolute priority was given to make candidates feel relaxed so they could give their best, as many were either new to the workforce or had been out of work for some time. Similarly, regularly recapping throughout the day minimised questions and confusion. Each candidate was also thanked individually after attending the event and advised on when final decisions would be made. So while technology does provide vital back office governance for tracking and reporting, it should not define volume recruitment strategies. Candidates and values should underpin every element of the process, driven by well-trained, motivated recruiters. By focusing on weaving genuine corporate values into the attraction and selection process, and personalising communication, employers will succeed in attracting and retaining superior candidates whatever the scale of their recruitment needs.

Power Points In a CIPD Employee Outlook report (Nov 2012), 73% of employees recognise the significance of organisational values, stating their importance in governing employee behaviour. Almost 75% of engaged employees agreed their organisation’s values positively influence people’s behaviour. Don’t assume your target market is online: an Office of National Statistics survey from Q1 2013 stated that 7.1m adults in the UK (14%) had never used the internet. In not-for-profit organisation The Talent Board’s report on ‘The Candidate Experience’ (17,500+ candidates surveyed), a growing number of respondents are willing to share positive (31%) and negative (20%) experiences with anyone through social media sites. Only 45% of employers in The Talent Board’s report have established practices where recruiters are accessible to provide feedback.

PHIL CLARKE is chief executive ofﬁcer of Independent, a people services business www.independentltd.com

Share your insight and blue-sky thinking. Contact the editor: deedee.doke@recruiter.co.uk

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The Challenge

Urgent deadline? No problem, hire an Elancer Elliot Newsome MD and founder

SKT CONSULTING WAS FACED WITH A 12-PAGE LEGAL DOCUMENT THAT NEEDED CHECKING BEFORE A CONTRACT COULD GO AHEAD. ELANCE FOUND THE SOLUTION

THE CHALLENGE Established in 2011, SKT Consulting specialises in project management and business continuity for the ﬁnancial services sector. The company had been in lengthy negotiations with a new client involving building apps, and managing director and founder Elliot Newsome was keen to win the contract. “It was a Friday. We’d gone through the ﬁnal negotiations on price and we were due to start [this project] on Monday,” he told Recruiter. “The team was ready to go.” During the morning, Newsome sent over SKT Consulting’s standard terms and conditions for the client to sign and return. Admitting that what happened next was “maybe an oversight on our part”, the client duly returned their own, which SKT had to sign — a 12-page legal contract. “I didn’t want to lose this opportunity, so we needed to get this contract reviewed and back to us by the end of the day,” Newsome

“I’d have never been able to get this done in time through the traditional channels” ELLIOT NEWSOME

said. “At that time, we were a very small business and couldn’t afford a retained lawyer, and I didn’t know anybody off hand.” He explained that it was all very well doing a search online or looking through the Yellow Pages, but he wouldn’t know the reputation of the ﬁrms and this was a very time-consuming solution. By now it was 1pm.

THE SOLUTION Newsome had recruited developers and IT expertise using online freelance marketplace Elance in the past, so he decided to give the site a try to solve this last-minute dilemma. “The model worked fairly well [previously], so I thought I’d try it,” he said. Hayley Conick, UK country manager for Elance, told Recruiter that with “more than 1.3m jobs posted on the site over the past few months”, this way of finding people to fill a role or complete a project was a “growing phenomenon”. She explained that Elance was a “little bit like the eBay principle”. Businesses or individuals post a job or a specific project and freelancers bid stating a budget and giving a timescale for completion. There was obviously an art to selecting the right person for the job, Conick said, and there were ways of “narrowing the field of freelancers down”. This included looking at the ratings and recommendations of those bidding, or getting Elance to auto-generate a list of suitable Elancers, whereby the job poster

Lessons learned “You needn’t just look for the most qualified person. Often, how someone responds to your proposal is the most important thing. They may make you think of something that hadn’t occurred to you previously” Hayley Conick, Elance

can browse candidates and invite them to bid. The feedback shows how previous employers rated a particular Elancer, giving reviews across six different areas of their work on a scale of one to ﬁve. “Prospective employers can also browse written feedback and see who’s used them again and again,” Conick told Recruiter. She explained it wasn’t just start-up companies that were turning to Elance but longestablished businesses as well. As for the type of freelancers, it was “increasingly professionals who were getting on board”, she said, citing a 326% rise in architects joining Elance from April 2012 to April this year. And this trend was set to continue, she predicted: “For someone like Elliot [trying to ﬁnd a lawyer], this is a massive advantage.” Conick added that the most important ‘art’ in choosing an Elancer was “how someone responded to your brief

Hayley Conick UK country manager

— whether they asked you relevant or constructive questions”. And although there was often a big cost benefit, she emphasised that “the time factor was often more important”. The time factor was obviously huge in SKT Consulting’s case. After submitting the details of his project, in a couple of hours Newsome had 10-15 bids from people. After going through the feedback and reviews, he accepted the offer from an American lawyer who was based in China. “He got the document back to us within two hours,” Newsome said, and by 5pm the contract with the new client was signed and work went ahead on Monday morning. “It was awesome,” he told Recruiter. “I’d have never, ever been able to get this done [in time] through the traditional channels.” Having been an early adopter of the Elance model — “I believe it’s the future for a workforce model” — Newsome told Recruiter he often tries a role out using an Elancer, to see first how a certain position would work out before taking someone on full time. He also calls on Elancers to help in his back-office tasks. He gave the example of two experts in PowerPoint presentations — one based in India, the other in the US — which he could call on, choosing one or the other depending on the time of day (due to the time difference). And as for the lawyer who helped him out of a sticky situation? “We’ve continued the relationship,” Newsome said proudly. “He’s my lawyer now!”

Would you like to be involved in The Challenge? Contact Vanessa Townsend at vanessa.townsend@recruiter.co.uk

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Raising Standards

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Profile

Tim Campbell DEEDEE DOKE SPOKE WITH THE HEAD OF CLIENT SERVICES FOR EMERGING TALENT AT AMS

Much of the UK knows Tim Campbell MBE as the winner of the first series of the groundbreaking BBC TV reality show The Apprentice, which landed the former London Underground recruiter a £100k job with Lord Alan Sugar. Eight years on, Campbell has turned that role inside out and become an evangelist for apprenticeships in a new position with recruitment process outsourcing (RPO) specialist Alexander Mann Solutions (AMS). As head of client services for emerging talent, Campbell says he has “a grand title” and a mission to build an AMS business specifically designed to capitalise on the potential of young people and youth employment — not only in the UK but overseas as well. “For too long,” Campbell says, “it [being an apprentice] has been seen as a second-tier career — almost that it’s what you do if you can’t make it into university. “It used to be,” he continues, “that if you were called an apprentice, that was something to be highly regarded. It was a gold standard, a stamp of approval from someone who had taught you something, a set of specific skills which allowed you to go off and generate an income for yourself or to go and gain employment somewhere else in another organisation.” A bit like Campbell’s own prestigious experience with Lord Sugar, one might think. Apprenticeships can again be seen as the ‘gold standard’ for the recruitment of youth into organisations, he contends. Arguably, apprenticeships are the UK business issue du jour. The halo around a university education has dimmed — for both young people contemplating their futures and for employers — because of increased university fees, a volatile economy and a growing national realisation that a university degree does not guarantee either employability or demonstrable workplace skills. Then there is the need for UK businesses to grow their staff, but not by jeopardising fragile bottom lines. As a result, Campbell goes on to say, employers are starting to look more closely at “this very competitive space for young people and rearing away from strictly looking at university entrance schemes and milk rounds and now looking in other directions to find out where they can find enthusiastic, bright young people”. And that’s where his five-month-old job at AMS comes in. Campbell and I talk at AMS’s central London headquarters at Waterhouse Square on a rather humid day. We are both incredulous when it turns out that we share links to the same quasi-anonymous German city — Kaiserslautern, best known for its

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football club if it is known at all. And he speaks in glowing terms of his mother, who makes a mean rum cake and looms large as his role model and hero in his life. It’s been a busy eight years for the animated, bright-eyed and quick-to-laugh Campbell. Following his 2005 win on The Apprentice, he worked with Lord Sugar until 2007. He then went on to establish the entrepreneurial social enterprise Bright Ideas Trust, which encourages prospective young entrepreneurs from disadvantaged backgrounds to start business ventures. At that time, he famously announced that he wanted to launch 365 new businesses in a year through providing expertise and start-up capital to the next generation of young entrepreneurs. He’s also co-written a business book, What’s Your Bright Idea? Plus, London Mayor Boris Johnson appointed Campbell the capital’s Ambassador for Training and Enterprise, and across party lines, secretary of state Vince Cable also saw fit to appoint him to a special role of enterprise advisor. Oh, and he also serves as vice chairman on the board of governors at his local school in East London. Then there’s his work with the niche investment and development consultancy, Estate Office Property Consultants. And what about the corporate finance studies he undertook at London Business School? Why, I ask Campbell, did he return to school after working with Lord Sugar? Campbell himself describes working with Lord Sugar as “my real-life MBA”. But even before he became TV’s first Apprentice, he had already earned a psychology degree at Middlesex University. “I’ll be honest with you,” he says. “I’ve always had an inferiority complex. I’ve always had this thing, coming from East London, that I’ve never had stuff [knowledge] that is as good as everyone else. “But what it has done for me, based on what Mum taught us,” he continues, “was that I worked twice as hard, and I worked really, really hard to get the stuff that I want. And I’ll overdo it based on I don’t want to ever let the mask slip and have people think, ‘oh, you are a fool, you can’t do stuff’. I was never the cleverest at school, but I left with all my GCSEs, did a degree at university and all those other things.”

CAMPBELL’S PHILOSOPHY

“Constant learning and empowering others” CV FEB 2013 – PRESENT: Head of client services, emerging talent, AMS

2012 – Made an MBE for services to Enterprise Culture

JUNE 2007 – PRESENT: Founder and director, Bright Ideas Trust. Chairman (2012-13) and CEO (2007-12).

2005-07: Project director, Amstrad

2005: Winner, BBC TV’s The Apprentice

2000-05: Various roles including graduate trainee, recruitment consultant and senior planner, Transport for London

EDUCATION: Corporate Finance Portfolio, London Business School; BSc (Hons) Psychology, Middlesex University

SECRETS OF SUCCESS

“I WORK BLOODY HARD, THAT’S THE SECRET, AND IF THAT’S A SECRET THEN MOST PEOPLE SHOULD KNOW ABOUT IT BECAUSE IT’S NOT ROCKET SCIENCE. HARD WORK IS THE PREREQUISITE OF SUCCESS”

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PHOTOGRAPHY: RICHARD LEA HAIR

Profile

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Profile

There was, Campbell admits, a certain “bit of vanity” involved with studying at the London Business School. But in addition to the deepened knowledge and exposure to a level of teaching he describes as “just so incredible”, his personal confidence grew. He further realised that employers must do more through sponsorships and bursaries to help young people access similarly high-level learning and the professional networks that come with it. Campbell points out the link between education and social mobility, and says one of his aims is to ensure that social mobility “is at the heart of everything I do”. His new venture with AMS supports that cause in a different direction than his first post-Lord Sugar effort. The Bright Ideas Trust was established “specifically to help those who were the most disadvantaged to set up to run their own companies, to create wealth”, he says. “But the reality was, you are only ever going to get certain amounts of people who are going to take that entrepreneurial leap, who are going to be comfortable with risking everything, working non-9-to-5 hours and understanding that it takes a long time to get that true link between effort and reward if you have to build something up.” Now with AMS, Campbell believes he is on track to help many more people climb the social mobility ladder, “and the easiest way to do that is to get a job”. And it is not only the socially disadvantaged who can benefit from AMS clients’ embracing of apprenticeships. “What I can offer is a sensible alternative for a growing minority that do not want to go down the sausage machine of a formalised education piece and who might be better gifted at working from day one with an employer that they can get their hands dirty with,” Campbell says. “Now,” he adds, “I am not talking about trades, I am not talking about welders; I’m talking about now we have apprenticeship programmes for stockbrokers, we have it for those in the financial industry, we have it for those in creative fields. So there is a huge growth of energy and enthusiasm in these fields. “But there is a lack of structured jobs for them,

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and employers have been holding back in the current economy because they are not too sure about what the future looks like.” AMS’s thrust toward greater deployment of apprenticeships is intended to cross UK boundaries and serve clients around the world. Campbell has recently spent time on a road trip to the US where his stops included Minneapolis and Portland, Oregon, to explore future opportunities to develop apprentice programmes. While the US has not traditionally been a hot bed of apprenticeship activity, Campbell believes the tide is also turning there in favour of such an approach to early career programmes. On a day-to-day level, Campbell’s work might involve consulting with an AMS client about “what schools to target and how to make a difference in those” and devising a bespoke apprenticeship framework, he says. While Campbell cannot yet reveal the names of clients that are buying into AMS’s and his expanded vision of future talent, he says that defence, logistics and telecommunications firms are poised to explore the potential of apprenticeships. “What we are finding is, employers are saying much more: ‘Look at my organisation, look at my plans for the future and then work backwards to see how you can help me find the best talent to meet the future requirements’,” he explains. Campbell knows that his win on The Apprentice gave his own career an unusually high-profile boost. Based on that experience, what advice would he give young people about to enter the world of work? “If you were to ask me if I would do it [participate in The Apprentice] again, I would say probably not unless I knew I was going to win,” he says. “I am very passionate about telling the young people we now work with, what you need to do is: invest in things that are going to grow exponentially in your personal bank account, which are a great education, great friends and a great support network around you. “Because if you invest it in all of those, you don’t need a television programme to jump you up.”

“I’VE ALWAYS HAD AN INFERIORITY COMPLEX. I’VE ALWAYS HAD THIS THING, COMING FROM EAST LONDON, THAT I’VE NEVER HAD STUFF [KNOWLEDGE] THAT IS AS GOOD AS EVERYONE ELSE”

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11/07/2013 16:31

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Software

Netting the best data

FOR RECRUITERS, THE SPEED WITH WHICH THEY CAN GATHER AND ANALYSE DATA CAN MAKE ALL THE DIFFERENCE IN THE HIRING PROCESS. SUE WEEKES INVESTIGATES

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The adage that knowledge equals power will always hold true. With information available 24/7 and via countless channels thanks to new technology, the balance of that power will lie squarely with those who can access knowledge faster and more efficiently, and assess how it should be acted on.

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It’s no coincidence, therefore, that business intelligence & analytics software has been one of the fastest growth areas in recent years. Forward-thinking managers across every business sector are making sure they have mechanisms in place to access real-time information on every area of the organisation and its operations. Indeed, it’s fair to say

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11/07/2013 08:52

Specialist stafﬁng software

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Software

“AS A MINIMUM, RECRUITERS WILL NEED TO LOOK AT EMBRACING THEIR CANDIDATE ATTRACTION STATS, WEB PERFORMANCE AND SOCIAL ENGAGEMENT AS THEY DO THEIR PERFORMANCE KPIs” WENDY MCDOUGALL, CEO, FIREFISH SOFTWARE the old adage could be updated to ‘data is power’. Whether an agency or in-house recruiter, access to and analysis of the right data can make the difference between a good and bad decision whether it be over a hire or any part of the recruitment process. “Recruiters, especially in these economic times, need data more than ever to make sure the activities they are undertaking make sense financially and produce the right results,” says Lisa Scales, co-founder of the social applicant tracking system (ATS), and hiring and engagement platform, TribePad. “Recruiting can no longer be driven on hunches and gut feels but by trends and results, and the recruiter getting the most from their budget.” Capturing data used to be both work- and timeintensive but advances in software have changed the landscape. Recruitment software has long provided management reporting capabilities but developers are recognising that such systems have to offer far more than just the ability to track and report on standard metrics, such as cost and time to hire. TribePad, for instance, records and reports on every click on the platform, and Scales claims the data is used for reporting, decision-making and channel efficiency usage, as well as levels of engagement from recruiters and hiring managers. Elsewhere, Firefish Software’s recruitment platform automatically feeds data back to recruiters, telling them which advertisement is performing best and getting the most applications. It also reports back on specific part of a recruitment campaign. “For instance, it lets you look at things such as how many people are falling out of the process,” says Wendy McDougall, chief executive officer of Firefish. “Maybe the job didn’t marry up to the expectation of how the job was advertised. So that data really helps when feeding back to hiring managers.” Both Scales and McDougall view a major part of their role as a recruitment software developer as making data more accessible and easier to work with. “I don’t think it’s a case of recruiters failing to recognise the importance of data rather than how easy it is for a recruiter to capture and make sense of the data,” explains Scales. That’s a sentiment with which McDougall agrees: “Good recruiters will use absolutely everything they can to help them make a placement but it’s maybe been too difficult for them to tap into until recently.” She cites the example of a recruiter being overly reliant on paid-for advertising, which often delivers repeat responses from candidates who are already in their databases. “All the data [to make better decisions] is there, it’s just about breaking habits to use it,” she says. Indeed, recruiters certainly need to evaluate and expand the metrics and key performance indicators

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(KPIs) they use if they are to capitalise on the mass of data that resides in their systems. As Dan McGuire, founder of the visual analytics company cube19, points out, a KPI’s purpose is to drive specific behaviour, as its name suggests. But he claims that a lot of traditional metrics drive the wrong behaviours and hinder rather than help recruiters. “To keep improving you have to change and adapt, but most people are still measuring the same things they were five to 10 years ago,” he says. “If you do what you’ve always done, you’ll get what you always got.” McGuire believes that one of the most important pieces of intelligence that a recruiter can obtain is data relating to the ‘chance of making a placement’. Too many companies have a generic interview-toplacement ratio across the whole company that they expect their people to meet, but McGuire contends that this changes, in some cases dramatically, depending on a variety of different factors. “Would you encourage recruiters to consistently work jobs they only have a 5% chance of

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Software

filling?” he asks. “You’ll say no, but I have clients who, before they started working with us, were doing that all day every day because what they were measuring — and basing their decisions on — was wrong.” Historically, there have been some major oversights in terms of intelligence when recruiters make decisions, including the frequent absence of employer feedback. McDougall suggests that a number of recruiters are “just accepting” of the fact that no employer feedback is forthcoming where a candidate is deemed not quite right for a position. “But now you can get that as part of your process, all built into your recruitment software,” she says. “You can start to look for trends in the kinds of candidates clients do or don’t like, identify any ongoing problems and start to collate a hiring manager or company’s preferences.” Access to such data means that a conversation between an agency recruiter and a client about these issues is far less subjective and more based on fact. By far one of the biggest areas of neglect in terms of intelligence though has been in the area of candidate feedback. Mystery Applicant launched last year to directly address this issue and has quickly built its brand in the UK and US. Its co-founder and chief operating officer (COO) Nick Price says that at a basic level there are recruiters using simple survey type tools to ask candidates for their opinion of the recruitment process. However, this involves only those candidates who are hired. “Forward-thinking organisations are implementing full feedback mechanisms from the very beginning of the process through to hired and onboarding,” he says. “This includes capturing the views of unsuccessful as well as successful applicants, allowing recruiters to understand not just how they can improve their process but also to measure motivations, perceptions and influences when candidates are applying for a role with the organisation.” Mystery Applicant is currently putting together a set of aggregated data that it hopes can be shared and used to establish best practice when it comes to the candidate experience. “I think there is more of a move to having accountability, and use data to monitor performance and process during the recruitment process,” says Price. “We will have tens of millions of job applicants who will have provided their feedback and our ability to analyse and benchmark will reveal industry leading

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statistics with several billion data points on the candidate experience.” Price says that the company is continuing to develop the platform, adding new features including data visualisation tools. He stresses that metrics and data are key to understanding but it is also important to present and visualise them in a way that informs decision-making. This philosophy is at the heart of McGuire’s strategy at cube19. An early adopter has been the global recruitment company Cititec. Cititec uses the cube19 platform to pull data from its Bullhorn customer relationship management (CRM) system and delivers highly visual analytics to recruiters over the web via large projectors on the office walls, resulting in an enhanced data-driven environment. Six months after implementation, Cititec COO Robert Grant reports that it has increased new business sales by 62%. “What has been really interesting is the analysis which shows that we’re going to get another big improvement by changing our KPI structure entirely based on data we didn’t realise we had,” he says. Going forward, recruiters are going to find more sources and types of data to empower them to make better decisions and improve the way they work with developers homing in on all aspects of the recruitment process. In the US, for instance, Chequed.com is integrating competency-based data into a recruiter’s workflow to help predict whether a candidate will be a top performer. At the same time, WorkFu (see ‘Identifying the influencers’, Recruiter, June 2013) uses data pulled from social networks as a metric to endorse a person’s skills. Clearly gathering and analysing data can increase competitive edge which means recruiters will need to ensure that they have the software tools in place to do so as well as hone their skills in this area. This drive towards data demands recruiters to behave more like marketing people when it comes to measuring effectiveness of their performance and practices. Firefish’s McDougall believes this will be vital if they are to hold on to clients. “As a minimum, recruiters will need to look at embracing their candidate attraction stats, web performance and social engagement as they do their performance KPIs,” she says. “We’re all about giving them the tools they need to do that to take inbound marketing to recruitment.” According to TribePad’s Scales, this gradual development and shift in the recruiter’s role has been taking place over the past five years, with the tools used to attract and hire the best talent instigating such a change. “The job title ‘recruitment marketing manager’ is being more frequently used,” she concludes. “And these people will need to be experts at attraction through digital channels and engagement through content.”

Dan McGuire

Lisa Scales

Nick Price

WWW.RECRUITER.CO.UK

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