Recruiter May/June 2025

WHERE DOES THE UK FIT IN?

Navigating a shifting recruitment landscape in a new world order

A NEWS

05 Redefining the role of humans at work

Talent leaders can change the way we work to make it more pro-human than at any point in human history

06 Looking to the future for talent intelligence

A sector pioneer discusses what talent intelligence could look like in the future

07 Taking a Netwalk on the kind side of life

The Employment Agents Movement (TEAM) celebrated togetherness with a group stroll to raise money for charity 09 Contracts & Deals

B

TRENDS 11 Business Advice

Nick Barton on identifying sales leads during a client or candidate conversation

The priority of productivity: how consultants can be the most productive 14 Insight

The positive social impact of virtual work experience programmes

16 Tech & Tools

The latest recruitment technology and services

C INTERACTION

D FEATURES

THE BIG STORY: The AI agents are coming

Rather than being seen as the enemy, the recruitment industry should view artificial intelligent agents as an exciting new dawn

SPECIAL REPORT: Hiring in the US

A panel discussion at the 2O25 Recrutment Agency Expo in London explored the recruitment challenges and opportunities of working in the US under President Donald Trump’s second administration

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He went on to tell the audience that in economic changes, the skills change that are valued most.

“And that’s already starting to happen,” Raman said, “because in the innovation economy, the new ‘hard’ skills, the new IT skills, the new in-demand skills are the non-technical skills – in other words, our core people skills.

“I call them the five C’s: communication, creativity, compassion, courage, curiosity. Remember these,” he said. “These are what make us most human.”

Consequently, Raman continued, the key challenge humans face is “unlocking human innovation at levels we’ve never even attempted, let alone imagined to do before”. He reminded the audience that much innovation has occurred at the hands of those born to privilege. Others with the potential to innovate “don’t get the chance to innovate… they were up against socioeconomic inequities in how people access support and learning that they need to innovate”.

“That’s the fundamental breakdown we have to fix as we enter the innovation economy,” Raman said.

To start building the new “home human-centric, more

innovation-driving world of work”, he urged audience members to develop a change management mindset to consider what their employees could do now that they could not do without AI, to map employees’ skills and skills needed at their workplaces, incentivise people to learn and to invest in people managers as “frontline change agents”.

He further recommended that frontline managers and employees will need to “break down silos, break down bureaucracy that… suffocates and stifles innovation from ever taking root”.

He reminded the talent leaders in attendance that their roles today are especially significant. “If there is one thing I want you to remember from today, let it be this: You all right here, right now are in the midst of the most impactful moment of your careers, the most important moment of your careers, because in this moment, you get to redefine the role of humans at work in ways that will not just be more consequential than in any other point but human history – but also in ways that will be more pro-human than in any other point in human history.”

Analytics functions to merge into single workforce intelligence organisation

BY DEEDEE DOKE

WHAT WILL TALENT intelligence look like in the future?

As organisations scramble to secure the best data for making people-related decisions, a talent intelligence sector pioneer foresees a future in which all analytics-related functions centred on people are merged into a single workforce intelligence organisation.

Currently, a variety of analytics functions operate within many organisations, and “it gets messy fast”, said Toby Culshaw (below), vice president strategy for talent intelligence at US-led data firm Lightcast. While ‘people analytics’ have focused primarily on

internal research and data, by contrast, ‘intelligence’ typically refers to external data around jobs, skills, competitors and market locations within the ‘talent ecosystem’.

“So, whether you’re in people analytics, talent intelligence, strategic workforce planning, workforce planning, talent acquisition analytics, or recruitment marketing analytics… effectively, all of us are trying to scramble and find the future,” Culshaw said. “I think eventually we’ll merge into one workforce intelligence organisation. But at the moment [we’re in] that phase of how do we play nicely together?”

Culshaw recently joined Lightcast after a five-year stint at Amazon. Previously, he led talent intelligence at Philips. He was speaking in an hour-long webinar hosted by Lightcast in April, interviewed by his new boss, William Sims, the company’s senior vice president for professional services.

The world of talent intelligence has taken a beating in the last 18 months, experiencing many lost jobs throughout the recruitment and talent profession, Culshaw acknowledged. At the same time, demand for talent intelligence capability is high and rising, he said. In his new role, he said, he hopes to be involved with building technology support to increase organisations’ talent intelligence capabilities in dashboard self-service, for instance.

“I think we can build out a whole series of very scalable, very easily digestible data analytics and insights products,” he said. “I think there’s a whole raft of bundled services that are super interesting… something I’m thinking about calling ‘TI in a box’.”

This ‘off the shelf’ product would be especially valuable to small teams with limited resources, he said.

Take a Netwalk on the kind side

Members of The Employment Agents Movement (TEAM) celebrated togetherness with a group stroll, or Netwalk, at the independent recruiters’ association’s annual conference in April. With many TEAM recruiters operating as ‘solopreneurs’ and relating to the loneliness and isolation too often experienced in the world today, the time to spend together is welcome and even allows the group to raise funds – as they did this year. TEAM raised £900 for UK confidential text-messaging service SHOUT UK, which serves anyone who is struggling to cope. Including the walk and a raffle, activities at the conference, held at in Kenilworth, Warwickshire, raised £3,150 for charity, smashing the original target of £1k.

CONTRACTS & DEALS

Deel

Deel has acquired global payroll solutions provider Safeguard Global’s payroll division, which processes more than 2.4m payslips per year across 140-plus markets. Safeguard Global’s entire payroll team will join Deel, combining their tools with Deel’s in-house HR, immigration and legal experts. Joint customers will gain access to Workday’s functionalities alongside Deel’s payroll and HR services.

HR and payroll software provider Cezanne has acquired the Dublin-headquartered recruitment technology business Occupop. Occupop’s recruitment platform will be integrated into Cezanne’s product suite to support the parent company’s recruitment capabilities in attracting, managing and retaining talent. It is Cezanne’s first strategic move since receiving investment from NorthEdge in March 2023.

Axon Moore

CorpAcq has acquired financial recruitment consultancy Axon Moore following a majority stake by the investment firm. The Manchesterheadquartered recruiter, which reached No.44 in Recruiter’s HOT 100 list of top-performing UK recruitment companies, specialises in supporting ambitious businesses in recruiting exceptional C-suite leaders and building dynamic teams. The Axon Moore leadership team, including founder David Moore and MD Mark Turley, will remain in place.

DEAL OF THE MONTH

Recruitment and training group

Staffline has sold its wholly-owned subsidiary PeoplePlus Group to Talent International (UK).

Talent International, a wholly-owned subsidiary of Swipejobs Holdings, paid £12m cash, including £2m of deferred consideration, according to a Staffline statement. The consideration is on a cash-free, debt-free basis and subject to a deduction of £5.1m of advanced payments received in respect of future

Hyperion Search

Hyperion Search, an executive search firm specialising in renewables, energy storage and e-mobility, has been acquired by HC Group. HC Group is a global executive search and advisory firm specialising in the energy and commodities sectors. This strategic acquisition is intended to enhance Hyperion’s ability to serve a wider network of clients across Europe and beyond. Hyperion Search will continue to operate under its established brand, maintaining its focus on cleantech and renewables while leveraging HC Group’s extensive network and resources, according to the acquisition announcement.

Jobmatch Sweden

Jobmatch Sweden has entered into a partnership with the Croatian tech company Thespian. The tech business will integrate Jobmatch Talent, an occupational psychology testing system, and Jobmatch Logiq, a cognitive ability test, into its offerings.

Searchability

Tech recruitment firm Searchability has announced its transition to employee ownership via an Employee Ownership Trust (EOT). Searchability’s founder Martin Blythe, along with all existing shareholders, have sold 100% of the company shares to Searchability (EOT), which is the EOT that holds the shares on behalf of current UK Searchability employees.

The Kingdom Group

revenue, Staffline said. The net proceeds of the sale (including the deferred consideration) are expected to be £6.9m, the statement went on to say.

Staffline said its board intends to use the cash proceeds from the sale for a combination of share buy-backs and increasing funding capacity for the group’s organic growth strategy. The disposal creates a pure-play recruitment platform with reach across the UK and Ireland.

The Kingdom Group has completed the acquisition of First People Recruitment (FPR). FPR provides temporary and permanent recruitment solutions across the industrial & manufacturing, food and horticultural, technical & engineering, and health & social care sectors. The acquired business will be rebranded as Kingdom People to align with the existing brands within The Kingdom Group. This follows the acquisition of MC Personnel by The Kingdom People in November last year.

Staffline

Cezanne

LEAD GENERATION: IDENTIFYING SALES LEADS DURING A CONVERSATION

LEAD GENERATION IS ESSENTIAL for any recruitment business, as it involves attracting and identifying potential customers interested in the candidates you represent. In today’s competitive market, meaningful conversations with clients and candidates are the most effective way to generate leads.

Candidates are a fantastic source of leads. Researchers/ junior consultants speak with five to 10 candidates per day, which amounts to 25-50 people per week and 100-200 per month. If a recruiter fills two jobs per month, they place less than 10% of the candidates screened. Many of the remaining 90% will change jobs sooner or later. Keeping in contact with the best candidates allows you to hear about recent resignations, key trends and developments in your sector. When it comes to clients, engaging in conversation is crucial to recognise subtle cues indicating their level of interest and buying intent. This requires active listening, strategic questioning and the ability to build rapport. Use these key strategies to identify and capitalise on sales leads during a conversation:

1.Listen for ‘Pain Points’: Clients often express challenges or frustrations related to your industry. By listening carefully, you can identify opportunities where the type of candidate you place can provide a solution.

2.Ask open-ended questions: Engage clients with open-ended questions that encourage them to share more details about their needs, such as “What challenges are you currently facing in your business?” or “What are your main goals for the next quarter?” These help you position your service as the ideal solution.

3.Identify buying signals: Potential leads often give verbal and non-verbal cues indicating interest. These signals include asking about pricing, requesting case studies, testimonials, or references, comparing your offering with competitors, or expressing urgency about finding a solution. If a prospective client exhibits any of these signals, it’s a strong indication that they are a qualified lead and may be ready to move forward in the sales process.

4.Build trust and establish value: People buy from someone they trust. Focus on adding value to the conversation by providing insights, sharing industry trends and offering solutions tailored to their specific needs. Establishing credibility helps potential leads feel more comfortable and confident. My favourite question to put to a client is, “What is the best way for me to build a business relationship with you and your organisation?”

Nick Barton

5.

Qualify the lead: Not all prospects are ready to buy immediately. Some may need more nurturing before making a decision. Qualifying a lead involves assessing their budget, decision-making power and timeline. You can do this by asking, “What budget have you allocated for this solution?” or “Who else is involved in the decisionmaking process?” Understanding where they stand in the buying journey allows you to tailor your follow-up strategy accordingly.

6.Follow up strategically: Even if a client isn’t ready to buy right away, following up with them can keep you ‘top-of-mind’. Send personalised emails, share relevant content, invites to events, podcasts or webinars, or schedule a follow-up call to keep the conversation going. The key is to nurture the lead until they are ready to make a purchasing decision.

By actively listening, identifying ‘pain points’ and recognising buying signals, recruiters can uncover valuable leads during conversations and increase their chances of closing a deal.

Nick Barton founded The Barton Partnership and is co-founder and Investor of Search Chain Partners. In 2024 he won the Recruitment Industry Entrepreneur of the Year Award in the Recruiter Awards. ●

↗ NICK BARTON Founder of The Barton Partnership

Founder of The Barton Partnership

Achieving the ‘65/35 Rule’

Rather than seeing switching off as a luxury or a distraction, embrace it as ‘intentional freewheeling’ and recognise it as a strategic necessity.

Just as you plan focused work, schedule time for breaks, reflection, or unstructured thinking. Short walks, listening to music, or even staring out of the window can help activate your brain’s creative processes.

Rest, leisure and even boredom are essential for mental agility and performance.

Source: The Resilience Dynamic

emails, thousands of words and millions of lines of code.”

For many recruitment businesses, net fee income (NFI) is the preferred measure of efficiency, reflecting profit per employee. But that may not be the whole story.

“The challenge that creates for our clients,” Cassell says, “is that a lot of HR leaders feel that they are stuck between a rock and a hard place trying to reconcile the productivity increases that CEOs need to fuel their ambitious growth plans in 2025 and beyond, with a need to understand and care for employees who are exhausted, who are burning out.

“The other side of the coin is employee value creation; so what is the value that those employees created by doing work consistently at a high level of quality on time. So value creation is really the extent to which employees are devoting their time and skills to work is results-orientated and focused on organisational priorities.”

Another perspective comes from David Morgan, co-founder of specialist recruiter Morgan Law, who is responsible for developing the firm’s growth strategy and business strategy. The intangible facets of productivity, such as staff turnover, concern him, he told Recruiter

For instance, Morgan says: “It is reasonable to assume that staff turnover impacts on productivity three to six months before a vacancy is [filled]. In many cases, employee productivity begins to invisibly tail off as they become disenfranchised, quiet quitting or scaling their work back to job description minimums. Then,” he adds, “productivity losses snowball as the employee resigns and works notice, often taking holiday in lieu and winding down to hand-over – and all that happens before there is an identified replacement and the quantifiable staff productivity losses are recorded.”

Cassell, vice president – advisory. “However, productivity remains difficult for most employers to define, measure and impact. It really is a slippery one. I think part of the challenge is, it’s hard to come to any sort of consensus about what it is that can be done by HR leaders and as business leaders to drive productivity.”

Typically, Cassell acknowledges, the C-suite will use an economic calculation to measure productivity in their organisations. “They will talk about revenue per FTE [full-time equivalent employee], right, interesting, consistent with what we’ve seen in a lot of places. Meanwhile, if you ask employees ‘How do you assess your productivity’, you will end up with very subjective measures of their own ‘busy-ness’: a lot of meetings, many

“So, a lot of the conversations that we’re having with folks about productivity today revolve around three big questions, one being how can we measure productivity? How is it that managers should be communicating those metrics to employees? What about AI – is it really going to deliver the productivity enhancements that many believe it will? Or, finally, one of the bigger controversies these days: are on-site employees more productive than their hybrid peers? Or is it the other way around?”

Cassell continues: “Definitions of productivity tend to share two critical attributes: first is employee efficiency, which is a measure of the extent to which employees are doing quality work consistently at or ahead of schedule.

But there is another way of looking at less than optimum productivity. Jenny Campbell, founder and CEO of The Resilience Dynamic, argues: “Productivity is not about the hours worked – it’s about the quality of thinking and decision-making.”

The foundation of productivity, then, is achieving the highest level of resilience. Campbell recommends that 65% of a person’s time is allocated to focusing on ‘doing’, keeping 35% of the time to foster a combination of perspective, pacing, re-energising and replenishing.

“By embracing the ‘65/35 Rule’, you’re not slacking off; you’re optimising your brain’s capacity to function at its best,” Campbell urges.

And being the most productive you can be. ●

SECURING A JOB THROUGH VIRTUAL WORK

Unveiling the positive social impact of virtual work experience programmes

BY DEEDEE DOKE

Virtual work experience (VWEX) in the UK has delivered more than £98m in social value in the last three years through programmes created in connection with such employers as Amazon Future Engineer, Fujitsu, Barclays, Direct Line Group and Jaguar Land Rover, according to research from careers platform Springpod.

The findings are part of a white paper that launches a framework for calculating the Social Return on Investment (SROI). Developed in partnership with impact data and intelligence provider GIST Impact, the methodology helps organisations to assign a financial value, based on pound for pound investment, for the positive social impact of work experience programmes. It takes into account reduced welfare dependency and increased economic productivity, giving employers greater impetus to embed early career programmes into both HR and ESG strategies.

According to Springpod, more than 1m people have enrolled on its VWEX programmes. So far, participants have reported a 59% rise in job readiness and feel “very confident about securing a job”, with 45% saying their career confidence increased after completing a VWEX programme, based on their greater awareness of possible career paths.

How do VWEXs work?

Each programme is bespoke, Springpod says, but typically includes employer-led content, live or pre-recorded talks from professionals, interactive workplace activities and employability training covering CV writing, interviews and job applications. Students complete around eight to 10 hours of learning on any device – at either their own pace or as part of a live cohort – and receive a certificate upon completion.

Students undertake simulated work projects for real companies, participate in interactive simulations, experience behind-the-scenes access to companies and industries through virtual tours, receive online mentoring and take part in interactive workshops that help them develop essential workplace skills such as communication, teamwork and problem solving.

What is the SROI and how is it measured?

Under the Springpod approach, it captures the social impact of change by assigning monetary values to social, environmental and economic outcomes, measuring social value in financial terms. “This allows us to calculate a ratio of benefits to costs. For example,” Springpod’s white paper explained, “a 3:1 ratio means that an investment of £1 generates £3 of social value.”

A similar application of SROI can be found in community sport and leisure activities in England. Sport England’s autumn 2024 report, ‘Active Lives’, reported that the annual social value of community sport and physical activity was £107.2bn. The value was made up of £96.7bn in annual wellbeing value for adults, children and young people taking part and volunteering in sport and physical activity – and a further £10.5bn in wider savings to the health and social care system a year. Sport England explained: “This relieves pressure on the NHS through the prevention of illness, reduced mental health service usage, fewer GP visits and a reduced need for informal (unpaid) care.”

With VWEX, Springpod says it aims to use SROI to quantify their social impact in terms of improved career outcomes, increased employability and enhanced social mobility. It also intends to provide data-driven insights to inform programme design, resource allocation and strategic planning along with demonstrating the VWEX programmes’ value and impact to stakeholders such as funders, educators and employers.

Movement growing

Other organisations have discovered the benefits of VWEX and implemented variations on the theme. In April this year, STEM recruitment firm Matchtech launched its STEM Futures

programme, a free and on-demand employability initiative designed to help young people break into engineering and technology roles.

STEM Futures aims to provide “practical, accessible and high-impact employability support”, the firm said in a statement.

Matthew Wragg, CEO at Matchtech, said the programme was about “more than just job-hunting advice – it’s about empowering young people with the tools, confidence and insights they need to thrive in engineering and technology”.

The content offered will include employability sessions covering areas such as CV writing, interview techniques and job search strategies; bespoke modules on resilience, personal branding, networking, growing confidence and using AI, tech and social media in career development; and downloadable career path guides and industry insights.

The STEM Futures platform is live and offers 13 expert-led sessions that can be accessed anytime. Users can also sign up for live webinars running from May to July.

Employers also benefit from VWEX programmes, Springpod contends, by:

● increasing talent pools and enabling them to engage students beyond their immediate geographic reach

● enhancing applicant and candidate quality

● improving workforce diversity and

ensuring a more equitable hiring pipeline by removing location and cost barriers

● and scalability, by reaching thousands of students with minimal operational disruption.

In addition to social value, Springpod argues that this form of work experience programming generates key economic outcomes and benefits, such as risk reduction for potential NEET (Not in Education, Employment or Training) populations, and public cost savings.

The results so far reflect only the beginning of VWEXs’ potential impact, Springpod says: “These cost savings are not yet incorporated into the calculation of the £98m in social value. We plan to include them in future iterations of the framework. This means that the £98m is just the starting point of the impact, and there is more potential for additional social value to be recognised in future calculations. The actual impact is likely to be even greater than this initial estimate.”

Can the existing VWEX programme evolve to involve even more UK students? “We are working with educators and policy makers to embed VWEX into mainstream career education, advocating for universal access to high-quality work experiences that prepare students for the future,” Springpod said in a statement. ●

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POWER POINTS

Beneficiaries, or learners who complete most or all of a Springpod experience, will typically experience a programme lasting six to eight hours.

Virtual programmes are flexible and unlikely to prevent participation in other experiences.

Currently, 14.5% of 16-to-21year-olds are unemployed (2024).

Maximum income if unemployed, also known as the job seekers’ allowance for under-24s, is £3,727.

Minimum income if employed at minimum wage of £6.40/hour, 36 hours per week is £12k. This results in an £8,272 difference between employment and unemployment. To validate the figures, Springpod surveyed alumni (with 1,000 respondents), whose reported average income ranged from £15k to £20k, exceeding the £12k assumption.

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Among top companies generating social impact through virtual work experience are Barclays, Fujitsu, Airbus, ICAEW Chartered Accountants, Amazon Future Engineer, Direct Line Group, TLT, JLR and JLL

The majority of this report is excerpted from ‘The ROI of opportunity: Measuring the social value of Virtual Work Experience’, by Springpod in partnership with GIST Impact.

easy communication, quick summary of applicants, intelligence to support the recruiter in describing what the organisation needs in terms of vacancy skill sets and so on,” he says. “Larger organisations might focus more on internal processes so that AI brings less value.”

De Geijter also reminds recruiters that while being candidate-centric is a key benefit, it is not the only part of an ATS. “All the internal workflows remain important. If a native AI ATS does not have all this, this is clearly a downside. In other words, using the new technology should not mean we forget about all the functionality that has been gradually adopted in systems up until now.”

De Geiter explains that Actonomy has always used AI technology in the matching technology but AI was more complex to develop 10 years ago

TECHNOLOGY AND SERVICES

than now, he acknowledges. “As a company we have combined our strong natural language processing (NLP) knowledge with own trained AI models and large language models (LLMs),” he says. “This speeds up development and brings a lot of value. By doing this, we know the advantages and the current shortcomings of using LLMs.” (LLMs are a form of AI that can understand and generate human language because they are trained on huge amounts of datasets of text, which enables them to provide responses that are both coherent and relevant.)

“All our applications – like plug-ins offering AI functionality to ATS/CRM systems – are native AI and allow a lot of the functionality such as vacancy enrichment with skills, skills prompting to candidates, summarisation and analyses of profiles. We don’t do the communication part as we look to partner to offer this.”

It’s fair to say it won’t be too long before all ATSs are native AI, not least because, as De Geiter explains, developing the native AI functionality is often easier than developing a lot of functionality that is already in a classic ATS. And as our article on the use of agentic AI and AI agents in this issue shows, recruitment is entering its next phase of automation and De Geiter says this is an area that native AI ATSs are now focusing on.

When technology progresses to the point that its use is seamless, it means end-users need to wonder less about how tools work behind the scenes. That said, this can also make it more difficult to assess one system against another. So, the message remains the same as it’s always been: exercise due diligence when working with technology providers and focus on what you want to achieve. ●

IN BRIEF

Discreet job-hunting for recruiters

RecCircle claims to have developed an innovative approach to helping recruiters explore new career opportunities that prioritises privacy, performance and trust. It allows recruiters to create anonymised profiles, showcasing their achievements and experience without revealing their identity until they decide to do so. Meanwhile, advanced search filters and secure communication channels enable recruiters to connect with potential employers more efficiently. www.reccircle.co.uk/

A more intelligent approach to skills AI talent platform Beamery is using an intelligent skills engine that helps employers create a customised, dynamic skills blueprint, consolidating role requirements, identifying key skills for roles and offering actionable insight to improve hiring, upskilling and internal mobility strategies. It claims to have reduced skills-mapping time by 89% for one client (from four-six months to 17 days) as well as set up actionable skills frameworks for another client in less than a day. https://beamery.com/

Customer-inspired enhancements

Talent acquisition technology firm iCIMS is introducing a generative AI-powered chatbot that can engage in personalised interactions with visitors to career sites. iCIMS said such a digital assistant was a “top requested enhancement” by customers. The chatbot claims to provide quick and accurate answers to a variety of questions. Future releases will include additional integrations with Dalia, Hire Intelligence, JobTarget, Nexxt and Veritone Hire.

www.icims.com/

Talent agent and next-gen video interviewing

HireVue has unveiled a suite of new products including a Talent Match and Apply agent as well as what it claims is the next generation of video-interviewing at its Horizon user conference in the US. It also showcased a new user experience that aims to drive efficiency for users throughout the talent journey. The company reports that its Match and Apply agent has been built by unifying the latest large language model technology with 20 years of its knowledge and experience. www.hirevue.com

As outlined in FCSA’s Umbrella Market report, licensing –combined with proper enforcement under the Fair Work Agency –would:

● Eliminate bad actors (or as we call them, payroll pirates) without creating unnecessary disruption for compliant businesses. Licensing means their past will follow them.

● Protect workers from harmful contract changes that contradict the very spirit of the ERB.

● Ensure a fair and level playing field for businesses by preventing tax avoidance and fraud at its root, rather than unfairly shifting the burden and responsibility onto recruiters.

Rather than rushing through flawed legislation with no proper scrutiny, HMRC and Treasury should step back and work with the Department for Business and Trade and industry experts to implement an approach that will actually work. FCSA has long called for a well-regulated, compliant umbrella sector, and we are ready to support solutions that achieve that goal without destabilising the market or undermining worker protections.

The ERB and so-called ‘umbrella regulations’ should work together, not against each other. The government has a clear choice: lose face by pushing through unworkable legislation that will cause chaos, or adjust their approach by aligning these policies to create a stable, fair and compliant labour market.

Dropping a previous government’s policy idea should not be a difficult thing to do when your own manifesto-backed legislation provides a better way forward. Doubling-down on this will not end well.

At FCSA, we’ll continue engaging with policymakers and pushing for licensing and proper enforcement, so that the contracting industry remains strong, stable and becomes fairer for all. ●

“Which proposed aspects would you like to see removed from the Employment Rights Bill?”

RUTH HOWBROOK-ARCHER

MD, KPJ GROUP

“Introducing unfair dismissal protection from day one is a step too far. Employers need time to assess new hires without the fear of immediate legal repercussions if things don’t work out. This change could make businesses more cautious, which would slow recruitment. If extended to agency workers, then it would have an impact on temporary and flexible hiring, making businesses reluctant to take on shortterm staff. A fair probationary period benefits all parties and ensures the right fit before any long-term commitments are made. Employment law should be encouraging hiring, not detering businesses from recruiting.”

MARTIN DANGERFIELD

TALENT

STRATEGY DIRECTOR, THE REC HUB

“I’d say any provisions that create an unrealistic admin burden for start-ups and small businesses are worth rethinking. Things like day-one rights for unfair dismissal: great in principle, but without a smart process behind it, it could backfire for small firms with patchy HR support. Or banning zero-hours contracts outright: again, philosophically sound, but there are people who choose flexibility. If you kill zero-hour contracts off, you risk forcing companies to find less good workarounds. If Labour pulls this bill apart before it sees daylight, it’ll be a huge U-turn from the ‘New Deal for Working People’ they’ve been promoting.”

WILL LAHAISE

CO-FOUNDER, PLTFRM

“The bill as it stands is coming at the worst possible time amid global economic uncertainty and will only deter investment and growth. Businesses need measures that will support growth and provide certainty. With the backdrop of increased NIC rates and ambiguity around global tariff negotiations, the bill threatens businesses with costly red tape and legal risks. Day-one unfair dismissal rights, even with a nine-month probation, will burden employers with tribunal fears and will stifle UK hiring. Flexible working as default will add to operational complexity while increasing administrative costs.”

By SUE WEEKES

THE AI COMING AGENTS ARE

Rather than being seen as the enemy, the recruitment industry should view artificial intelligent agents as an exciting new dawn – an opportunity to release recruiters from the mundane, automated tasks and boost recruiter productivity

Recruiters are used to being at the coalface of digital revolutions. From the early days of job boards and applicant tracking systems (ATS) through to the march of artificial intelligence (AI), they’ve had to adapt their mindsets and processes to adjust to new ways of working. Added to that, with nearly every sector subject to some form of digital transformation over the past 25 years or more, they’ve also had to help navigate a path for their clients who have witnessed roles being lost, created new ones and dramatically reshaped workforces because of technology.

Now, they must prepare for what could prove to be the most radical shift yet: integrating advanced and autonomous AI technologies into their daily lives and work practices as well as helping clients to build a blended workforce of humans and AI agents, capable of automating a huge range of tasks. To some it will sound like the future they feared, finally being replaced by technology wholesale. To others, it’s an exciting new dawn that could make the world of work far more interesting. But, either way, recruiters cannot shy away from this future.

AI agents are specific applications of agentic AI, a field of AI that acts on its own, making decisions and taking action without any input

from humans. They also have powers of reasonings, enabling them to problem-solve and to adapt through their own continuous learning.

Intelligent agents aren’t new but the emergence of large language models (LLMs) like OpenAI’s GPT-4.0 and Google’s Gemini are creating a wave of far more sophisticated autonomous agents as well as fuelling major market growth. According to research and analysis company Market.us, agentic AI in recruitment and HR market is projected to surge from almost $23.2m (£17.4m) in 2024 to $842.3m in 2024, representing a compound annual growth rate of almost 40% from 2025 until 2034. It

cites growth areas as AI-driven candidate screening, predictive hiring and the demand for data-driven decision-making.

“Agentic AI means AI that doesn’t just assist – it acts,” said Barend Raaff, co-founder of AI recruitment platform developer, Carv. “It takes real responsibility for recruitment tasks, like sourcing, screening, or updating systems. Think of it as a reliable colleague you can delegate to – not a tool you have to operate.”

He adds that agentic AI can work across the board for recruiters. “In high-volume hiring, it saves time by handling repetitive tasks at scale. In specialist hiring, it gives recruiters back time to focus on finding the right fit. The value is universal –speed, consistency, and more room for human judgement where it matters most.”

As already stated, agents can bring their own judgement into play. There are even suggestions that they may even be able to spot something in a candidate that a recruiter may miss. Certainly, we can expect ever more sophisticated agents in the coming months. HireVue, for instance, recently revealed its Match and Apply chatbot, which instead of relying on keyword matching or scripted prompts, adaptively considers a candidate for all relevant roles while personalising the experience to ensure no opportunity is missed.

Raymond Pennie, CEO and founder of Kyloe Partners, a Bullhorn global system integration partner, believes AI agents, which can also be referred to as digital workers and digital assistants, are going to be “huge” for recruitment owners in the short and medium term. “They offer the options to double the capacity and raise your standards. Imagine contacting all candidates, screening them and allowing your most expensive resourcers to engage/speak to the most well-suited candidates for your clients. Admin will be done for you just like the old days when

DWIGHT IN ACTION

DeWinter is a US-based staffing company specialising in finance, accounting and technology. Brandon Simmons, executive vice president of technology and operations, explains that the company had been trying to build an integration between its payroll and onboarding/HRIS system, Paylocity and its ATS Bullhorn for two years without success due to complications with available APIs (Application Programming Interfaces). In addition, the cost of the integration build itself was not feasible for a mid-size staffing firm. It turned to DWIGHT for its ability to automate workflows between systems that did not integrate. In addition, it wanted to increase its operational efficiency and create “a great and expedited experience” for consultants.

Simmons explains that DWIGHT has helped increase efficiency through automated onboarding, which can now take place 24/7, as well as reduce data error risk. “This has also significantly reduced operational overhead costs to the business. It has also brought cost efficiency as we are able to deploy DWIGHT at a fraction of what we would have to pay a person to do the work.”

Before automation, three full-time staff undertook the work.

Simmons explains that one of its main priorities was to repurpose a team that was mostly doing admin/data work and enable them to become more consultant and client-facing to provide proactive support. “It freed their time up to do what humans do best – and always will – build relationships,” he says.

Given the replacement fear factor

that can accompany technology, Simmons explains that it is important to get the communication right around such deployments.

“Our team understands that our focus is to provide them more space to drive human connections and value so I think that inherent fear that people feel can be overcome with good upfront communication across the organisation as to our thought process and approach to the utilisation of tools like robotic process automation (RPA) and AI.”

The team interacts with DWIGHT via a dashboard and because DeWinter fully mapped out the workflow design, there were no surprises or learning curves to deal with. “Only the ‘awe’ of watching DWIGHT complete a process that used to take our team 45 minutes during normal work hours – if they were uninterrupted – to now being completed in under four minutes, 24 hours/day.”

DeWinter has further plans to utilise DWIGHT across the organisation for some field-facing tasks as well as continuing to expand its use in the middle and back office.

Simmons’ advice to other organisations exploring the use of AI agents is not to be afraid and to take a hard look at your workflows and business processes to see what efficiencies you could gain and what high-value work your team could do if they were not focused on data entry and admin work.

“Staffing, as an industry, has always had a proclivity to throw people at problems and in some cases RPA and AI are better and more cost-effective, longterm solutions.”

teams had administrators,” he says, adding that they will enable recruiters to be “better briefed” all the time. “Nothing will be forgotten, and everyone will be engaged fully.”

It is early days, and not all AI agents are fit for purpose. Moreover, there will always be cynicism in some quarters about how effective AI agents can be but there is plenty of real-world examples to show why they must be taken seriously.

Users of Carv’s AI platform include major employers such as DHL, Carrefour as well as Manpower Group. DHL Express’ hiring methods were unable to keep up with the speed and scale required to meet its business goals so turned to Carv’s conversational AI solution to streamline operations and boost recruiter productivity. It integrated the technology with its existing ATS platform, Jobylon, which allowed job postings to be easily converted into AI-powered chat flows that pre-screen candidates in real-time and automatically schedule interviews via WhatsApp.

DHL Express reports that it

THE RISE OF DIGITAL AND HUMAN TEAMS

Viewing AI agents as another team member may still seem like a leap of imagination but workforces already are comprising digital as well as human workers, with support and services now building around this concept. In March, talent company the Adecco Group and Salesforce announced investments in a new company with the remit of helping organisations build an integrated workforce of humans and AI agents.

It reports that the company will empower senior leaders to strategically plan, deploy and manage workers and AI agents “at scale” and will make use of Salesforce’s digital labour platform called Agentforce for augmenting teams with trusted autonomous AI agents in workflows. In a press statement, Denis

Machuel, CEO of the Adecco Group, said: “We are at a critical juncture for the future of work. Embracing AI adoption with a well-defined framework for collaboration between humans and digital agents sets the stage for successful outcomes.”

The new company plans to build agents on the Agentforce platform and list them on the AgentExchange marketplace. The latter was launched to help partners build and monetise agentic AI components and, with Adecco Group, it will seek to create “a digital labour model”.

Meanwhile, what claims to be the first job board for autonomous AI agents also launched this year. JobForAgent.com was co-founded by Poland-based Kamil Stanuch and Łukasz Wróbel. Stanuch describes the site as being at the proof-

of-concept stage. “We have a growing community of over 680 AI builders and experts who have signed up, eager to apply their skills,” he says. “We’re seeing forward-thinking companies, including deep-tech start-ups like Quesma, posting specific tasks and roles designed for AI agents. We’ve also facilitated connections that are leading to real development.

“While we’re creating a new kind of connection point – more like a specialised marketplace than a traditional job board – the interest indicates a recognition that the nature of some work is changing, and new ways to source solutions are needed.”

He observes a mix of “intense curiosity, excitement and understandable caution” around the market: “Businesses are trying to figure out what’s real, what’s hype,

that AI is a must-have but the implementation of it is still a puzzle,” he says. “We see the early adopters reaping rewards and the old school are finding reasons to leave it until next year. There are also splits inside businesses where not all recruiters/managers ‘get it’ and this will mean changes on the company leaderboards.”

Raaff sees it as replacing “tasks not people” but adds: “Recruiters who embrace AI will be freed from repetitive work and become more strategic. But yes, teams that don’t adapt may find themselves outpaced by those that do.”

Dries De Coster, CEO, of meet DWIGHT, formerly known as Chat Automation, explains that

“Recruiters who embrace AI will become more strategic. But yes, teams that don’t adapt may find themselves outpaced by those that do”

while digital workers are about saving money and streamlining, they are also about creating more meaningful work and ridding the workplace of many of the jobs people don’t want to do anyway. DWIGHT, which stands for Digital Worker Interface for Generic Human Tasks, automates middle- and back-office

processes, which he says is a fairly “untapped area”.

“We describe ourselves as living in the cracks. There’s a lot of AI and automation that happens at the top of the funnel on the sales side but what we do is automate in areas like onboarding, compliance, credentialing, time-sheeting and also work with vendor management services (VMS) and managed service provider (MSP) platforms. Margins are obviously getting squeezed –particularly in the temp world –and automation can bring cost-savings in these areas.”

DWIGHT can navigate around a lack of APIs between systems and can enter the process at any stage, depending on the client’s needs. De Coster says its aim is to solve a business problem rather than talk about technology, and the case study on US staffing firm DeWinter shows how DWIGHT tackled a major pain point at the onboarding stage (see Case Study, p23). For another client, it is automating the work of 12 onboarders. He also explains how DWIGHT can help when a temp’s contract is coming

to an end and another role is sought. DWIGHT is triggered into action by a date and then goes on to identify, for example, that the person is a teacher who wants to remain working in the Cambridge area. It goes off to find suitable open vacancies and emails them to the candidate. “Where candidates are somewhat scarce, it helps agencies hold on to people they’ve already onboarded so they don’t lose them to other agencies. In this way DWIGHT can be more revenue-generative than cost-saving.”

He says other benefits of DWIGHT are a speeding up of the whole candidate experience – “and obviously the speed to the pound for our clients” – and higher retention rates because people are more engaged with their work. Meet

DWIGHT recently signed up a new recruiter who was looking for a credit controller to automate its whole accounts payable process. “Rather than hiring a person they are using DWIGHT at a fraction of the full-time equivalent (FTE) cost,” says De Coster. “We call this ‘grow without growing’.”

The company also has a handful of clients with offshoring teams who are now opting for DWIGHT.

The next incarnation of DWIGHT, De Coster explains, will be fused with agentic AI, increasing capabilities further. “DWIGHT runs autonomously in his current iteration and already has ‘rule-based’ intelligence. When infusing him with Agentic AI, we will be able to take his intelligent interpretations skills to the next level. The first step will likely be for

DWIGHT to present his findings for human validation, until Agentic AI evolves further and ensures the correct interpretation takes place 100% of the time.”

There is still much to learn in this field but with cost and time pressures mounting, more and more recruiters are likely to explore the use of AI agents. They must be “thoughtfully implemented” like any system, says Raaff, and could cause confusion or even add complexity if not done so. “AI has to be embedded, not bolted on,” he says, but he adds that while it is early days, clients are going further than expected in some cases and once they start to hand over work to AI, they also start exploring new ways to use it: “It becomes part of their day, just like any other team member.” ●

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Recruitment

Ma ers

THE VIEW AND THE INTELLIGENCE

Prepare for the unexpected p2

BIG TALKING POINT

Get behind digital verifica on p4

LEGAL UPDATE

Stay compliant with recent cost rises p6

Q&A

Insights from two new recruiters p7

Tax mebomb is ticking for recruiters

The government announced in last year’s Budget that from April 2026 recruitment businesses will be responsible for processing PAYE tax and Na onal Insurance Contribu on deduc ons for any of their workers engaged through umbrella companies.

The government’s recent announcement that umbrellas will be regulated is a win for the REC, which has long campaigned for this parity with employment businesses. We will con nue to work to ensure the regula ons are fit for purpose so compliant businesses are not unduly penalised.

However, there are concerns that agencies may not have registered their new responsibili es when using umbrellas because they are overwhelmed with other impending changes. Part of the REC’s work to help members prepare for the new rules includes a survey asking how agencies plan to respond to the changes and whether they see any unintended consequences we should flag with the government.

The clock is cking, but there is s ll me for the industry to think about how this will change the way it operates and manages engagement with umbrella firms in its supply chains.

REC members can access the SafeRec pla orm at a discounted rate to conduct due diligence on umbrella companies in their supply chain and to automate pay slip audits. There is li le me to waste preparing for the addi onal compliance – especially as agencies must also contend with changes introduced by the Employment Rights Bill in 2026.

The REC’s expert legal team will be

monitoring updates and details that emerge on the planned rule change. They are also available to advise on how to stay compliant. REC members are encouraged to get in touch with the campaigns team to give their feedback on the poten al impact of this new regula on.

Please send your emails on this issue to campaigns@rec.uk.com

the view...

IAim for a brighter future, but keep some energy to deal with surprises when you get there, advises Neil Carberry, REC Chief Execu ve

t was great to see so many friends, old and new, at the RecExpo in March. What was par cularly pleasing was the sense of op mism and enthusiasm that wa ed through the Excel Centre a er a long winter.

I’ve always loved the buccaneering spirit of this sector. We can’t pretend that the past few years have been easy – and we all know how much is changing in the market every day.

In my session, I loosely mirrored the themes of the children’s book We’re Going On a Bear Hunt to explore what is happening now. If you aren’t familiar with what was always a bed me classic with our kids, the story focuses on a family who set out on a trek to find a bear.

They have an arduous journey and endure many challenges – recruiters may replace mud, rivers and snow with variable client demand, new regula ons or evolving technology. But their op mism and enthusiasm help them to overcome all these barriers.

Then their problems really begin. This is not because they fail, but because they are successful. They find a large bear – and promptly run away.

What are we to make of this for recruitment? My point was that the growth you are seeking may well be out there, but it may prove to be different from your expecta ons or it may require your firm to have different approaches or infrastructure.

That’s uncomfortable, but it’s essen al to address. Whether it means a different entry point for clients, different delivery models or internal changes, it is always worth having in mind that the market, as it comes back, is unlikely to look like it did before.

We all know that our sector follows the economic cycle, but as you navigate that challenge, remember to save some of your effort and enthusiasm to consider the ques on of what a good market will look like now. Then prepare for that.

When you find your bear, you’ll know what to do.

If you want to keep up to speed with all things recruitment then follow me on X @RECNeil

CAMPAIGNS

On the front foot in

gov.uk consulta ons

Shazia Ejaz, Director of Campaigns at the REC

One of the very few mes gov.uk provides excitement for the REC campaigns team is when a consulta on is published. These come in different forms. For example, the Department for Business will publish a ‘condoc’ on zero-hours contracts measures, which will ask for specific answers from nongovernment respondents, whereas Green Papers allow people inside and outside Parliament to give feedback on policy or legisla ve proposals. These are opportuni es for the REC to in uence government. In the case of the Employment Rights Bill (ERB), we warned of unintended consequences to a number of proposals. Now, however, we are lobbying for a change to the ming of a consulta on on the reinstatement of the School Support Staff Nego a ng Body (SSSNB), which was abolished in 2010. The reform will see agency workers in support roles at state schools included in na onally-set terms and condi ons, with pay rates agreed in nego a ons between employers and trade unions.

It is encouraging to see agency workers included in these reforms, and we are ready to represent agencies as needed, but we are concerned that the consulta on will run from June un l just before the summer holidays. This is the period when educa on recruiters are least available to engage in the consulta on process. The Department for Educa on (DfE) needs meaningful input, especially around overlap between the SSSNB and other rules governing the agency market. A rushed consulta on could waste an opportunity to address labour shortages in state schools.

Departments’ willingness to engage with the REC in consulta ons varies. The Department for Health and Social Care is ignoring healthcare agencies over policy changes that will ban the use of con ngent workers at bands 2 and 3, so we make our case more via the media. The DfE approach to pay is more inclusive and considered than in the NHS, so we hope it will agree to change the ming of this important consulta on.

big talking point

Common good

What would digital verifica on look like and why should everyone in the recruitment industry be excited about ge ng involved?

You walk into the sta on, scan your phone and pass through the barriers. Before your train leaves, you wave your phone at a barista and receive a la e and a croissant. So far, so normal. This could also be normal in the world of employment if the recruitment industry unites in pushing for the common advantages it would provide for candidates and clients.

In a perfect world, a candidate could walk into a recruitment agency, discuss what they’re looking for and present their phone. Their digital wallet will iden fy them and verify their right to work, their professional qualifica ons, cer ficates, DBS checks and HGV licence, along with references from their previous posi on. This is the vision for a universal digital verifica on that the REC is advoca ng for the UK labour market.

The advantages of such a system are obvious. Every recruiter knows the host of rou ne checks necessary to get a single person into a role and the many government and trade bodies involved. Add to this the need to chase (and in turn give) references mul ple mes and the costs in me and money add up significantly – especially for those who place temps and interims. Employers

and others who rely on the accuracy of checks could verify all the informa on shared by the individual in a second, at a frac on of current costs.

Furthermore, the government is desperately seeking growth and long delays and high costs are ine cient, crea ng barriers to employment. The REC has raised this issue in its response to the Comprehensive Spending Review: “The delays caused by the current system are significant. Members report that placing a locum doctor can take 4-6 weeks due to repeated verifica on requirements. Workforce shortages are worsening in key sectors, with vacancy rates at 40% in healthcare, 38% in educa on (up from 22% in 2017), and 40% in construc on. In educa on alone, only 59% of the target recruitment was achieved in 2022/23. These ine ciencies impact major government priori es, including reducing the NHS backlog, cu ng reliance on benefits, recrui ng and retaining teachers, and accelera ng housebuilding.”

Secure and universal

The technology already exists, so digital verifica on could become reality if all the issuing ins tu ons provide cer ficates and verifica ons digitally to candidates.

However, all recruitment firms must collaborate. The system will work only if everyone joins it. The REC is therefore driving the ini a ve to communicate and promote collabora on between recruitment firms and their partners.

The first steps have already been taken. Supported by the REC, a group of leading recruitment firms and the Velocity Network Trust Framework are crea ng a simple path to issue and verify digital creden als via a web-based pla orm and candidate digital wallet. The inten on is for this to go live in the summer.

All the personal data in individual digital wallets will be secured by blockchain technology, making it tamper-proof. It is owned by the candidate, but the recruitment consultant can verify that the informa on is reliable and current. They then move straight to iden fying suitable roles and the candidate could, poten ally, start work the following morning.

The REC is asking the government for regulatory changes to enable the digital verifica on solu ons to be widely adopted. The government is listening because the system would help it to move claimants off benefits and into taxpaying roles.

Wow factor

The recruitment agencies working on the project with the REC are clear that this must be an industry-wide not-forprofit ini a ve that works for all types of recruitment agency.

To make this happen, these recruiters are inves ng me and money to get the project off the ground. “I don’t normally join projects like this,” admits S nus Andersen, Informa on and Systems Director at Morson Talent, who is part of the group. “But I felt real excitement when I saw this. I thought, wow! It has real poten al to change the way we work for the be er. I think I will look back and be proud to have been involved.”

He adds that in an intensely compe ve industry, it felt good to work on a collabora on that will benefit everyone – par cularly clients and candidates. “We are inves ng me and money in this because these things don’t just happen and we need to make sure that it works for everyone,” he explains.

“The benefits are clear,” he adds. “There are huge gains to be had in terms of e ciency, control and quality. We’ll be able to tell clients and candidates that they can start work without any delays, and when a contractor leaves us we

can give them a secure digital reference that the next employer can read. Best of all, the data can’t be altered, but the candidate retains full control over who sees it, when and why.”

He is already looking at how Morson can adapt its onboarding processes so that people know when they join that they can take their Velocity reference and all the checks with them when they finish a contract. “It’s very rare that you have something genuinely new to offer people,” he says. “The only challenge is to get compe ng firms to collaborate on this, so I want to have a playbook I can

take to others in our sector and say ‘this is how we’ve done it and what it involves’.”

In the long term, he believes the issue will be less about gaining a compe ve advantage and more about not being at a compe ve disadvantage. “This is about future-proofing our profession,” he says.

Seamless transi on Graham Lucas, a Managing Director at Michael Page, who is also in the pioneer group, agrees. “Our industry should welcome this,” he says. “This is an opportunity for us to reduce fric on and cost and make working transi ons seamless from a data and security perspec ve.”

He emphasises the benefit to clients and candidates. “The government has already commi ed to making driving licences digital by 2027 and many people have digital wallets. I don’t think in five years’ me anyone will expect to print things out or send documents for accredita on elsewhere to prove their ID or start a new job.”

The important issue now is that the whole recruitment industry gets behind the project, he stresses.

“We don’t want to build something that works for only a handful of businesses. It’s got to be simple to use, but flexible to meet the compliance needs of every type of recruitment agency in every sector, all salary levels and types of contract. It must also be totally trustworthy.”

The idea and the aims are straigh orward, but the prac cal development is complex. This is why Lucas welcomes the role of the REC in bringing together founding members who can commit to driving this forward, shaping its development and promo ng it in their sectors.

“If you hired a dedicated team to build this it would increase the costs 50 mes because we’re dona ng our ideas and exper se to making it work for everyone,” he says. “We’re doing it for the whole industry, because we want to be involved.”

In the end, he adds, the industry has to build this because recruiters are the people who know what is involved. “The product is new, but the service is what we’ve been doing for decades. We already know what works.”

legal update

Cost rises: what recruitment firms need to know

By Melissa Mhondoro, REC Solicitor and Head of Legal Advice

Employer costs rose in April 2025 and there are some key themes raised by recruitment businesses:

NMW and Pay Reference Periods

Na onal Minimum Wage (NMW) applies to work done in a pay reference period and so does not always automa cally affect wages paid out from the date of the upli . This means that when applying the increased NMW rate, the new rate only has to be applied to work completed in any pay reference period star ng from 1 April 2025.

For example, if a worker is paid weekly and pay rela ng to work completed from 24-30 March is paid on 4 April, that payment does not need to reflect the new rate as it would relate to a pay reference period before the increase. Addi onally, if NMW increases in the middle of a pay reference period, the increased rate will apply only from the start of the next pay reference period.

Employer NICs

Employer NICs cannot be deducted from pay. It is unlawful to pass on the

Demys fying digital transforma on in recruitment

Linda Sandberg, Sales Consultant, Vision33

costs of employer obliga ons to workers, and any deduc ons from a worker’s pay to recover employer NICs are likely to amount to an unlawful deduc on from wages. But employers can claim employment allowance, which provides a £10,000 NIC relief for businesses. Addi onally, from April access to this relief was extended to all businesses – by removing the £100,000 eligibility threshold that previously applied.

Statutory payments

The Na onal Insurance Lower Earnings Limit (LEL), which determines eligibility for statutory payments such as Statutory Maternity Pay (SMP) and Statutory Sick Pay (SSP), has increased. Workers will now need to be earning at least £125 per week to be en tled to these payments. It is worth no ng that workers who were eligible under the previous LEL and who began receiving the payments before the increase remain en tled to the payments.

It is important to include the right to claim employer costs from clients in contracts with clients, because there is

The recruitment industry is evolving, with firms under pressure to streamline opera ons, reduce costs and stay compe ve via digital transforma on. But what is digital transforma on?

What is digital transforma on?

Digital transforma on is about using the right tools to work smarter, not harder. An o en overlooked area is finance. An outdated finance system slows growth, increases risk and drains resources.

Many recruiters use spreadsheets and manual

no automa c legal right to do so. This is par cularly vital because businesses supplying temps are legally obliged to pay their workers regardless of whether a client has paid the business. Lastly, businesses should have prepared for the changes by comple ng the following ac ons:

• Reviewed terms of business with new or prospec ve clients to cover the increased costs

• Engaged in early renego a on of contracts with exis ng clients

• Examined payroll processes to ensure there are mechanisms to reflect the changing costs

• Considered redoing due diligence checks to ensure that any intermediaries you work with, such as umbrella companies or personal service companies, have complied with the changes since they came into effect

• Ensured that you can demonstrate your compliance with the new obliga ons if you supply to the public sector, because non-compliance could result in bans and/or exclusions from being a public-sector supplier in future.

workarounds to manage finances, leading to inefficiencies, errors and compliance risks. A cloud-na ve finance system such as Sage Intacct offers automa on, real- me repor ng and seamless integra on with applicant tracking systems, me and billing, payroll and other cri cal systems.

How to reach digital maturity

Start by assessing IT spend, iden fying bo lenecks and integra ng systems for a single source of truth. A cloud-na ve finance system improves

mul -en ty consolida on, real- me expense tracking and profitability insights.

The bo om line

Digital transforma on is about modernising finance opera ons, so recruitment firms gain financial control, improve decision-making and free up me to focus on placing the right talent in the right roles.

Linda Sandberg, a global Sage Intacct partner, can help your firm start digital transforma on.

Visit our REC Business Partner profile to learn more.

Skills and talent

Career returners tell recruiters and employers to change their approaches to employment breaks

The REC and social impact organisation Career Returners are continuing to promote to recruiters and employers the importance of hiring more people returning to work after a break because of, for example, illness, caregiving, further education, relocation or travel. They have produced new online guidance offering practical steps to help recruiters support more returners as candidates and the tools to encourage client employers to do the same.

The REC’s influential Overcoming Shortages report highlighted that labour shortages in the UK could cost the economy up to £39 billion annually – almost as much as funding two entire Elizabeth Lines on London Underground. This is why initiatives such as this are so crucial. The guidance seeks to reshape perceptions and policies, encouraging recruiters and employers to appreciate the value of individuals returning to work after career breaks.

REC member f1, which is B Corp certified, has pioneered this approach. In March it held its annual two-week Back2business bootcamp and its message to fellow recruiters was “you snooze on hiring such workers and you lose in this tight labour market”.

Recruitment Matters’ Hamant Verma attended the final event of f1’s Back2business programme, which is now in its 13th year. This was a formal speed networking event where career returners in marketing and communications delivered their elevator pitches and got feedback from a room full of employers. All were keen to secure a job offer.

At the Back2business 10th anniversary celebration in 2023, f1 conducted a survey and found that 85% of its alumnae had managed to get back into their careers within a year of attending the programme.

Petula Kincaid, over 50, from Clapham in London, has been on a two-year break from work since she finished a maternity cover role in marketing. Her message to in-house and agency recruiters is simple: “There is a misconception that older workers are more expensive – we are not. The children have flown the nest, I have a desire to add more purpose to my life and I have a lot of freedom and confidence.”

Another attendee, Laurence Bird from Wandsworth in London, has spent 28 years in director roles in marketing and research. “I feel recruiters could offer more advice on personal marketing,” he said. “Is there something on my CV that is not working?”

Meanwhile, Kristina Moskalenko, who has 11 years of journalism experience and seven-and-a-half years in editorial leadership wants to return after a three-year break dealing with caring responsibilities. She said she finds it odd that recruiters approach her on LinkedIn, sometimes about specific roles, yet she does not receive any feedback. She also said too many firms want her in the office five days a week, which is not possible with her child-caring responsibilities.

Career returner Monique Walcott, of South East London, who previously worked in B2B sales, said recruiters and employers need to “embrace diversity of thought, think outside the box and be open to looking at skills as well as recent experience”.

Among the firms at the speed networking event were John Lewis, Primark, Zeno Consulting, Teneo Consulting, Hope and Glory, London Marathon and FleishmanHillard.

Speaking after the event to RM magazine, Amanda Fone, founder of f1 Recruitment and co-founder of Back2business with human resource development and career coach Liz Nottingham, reminded recruiters of their huge influence with their clients. “We have access to hiring managers and client decision-makers to ask salient questions about career returners,” she pointed out. “If recruitment consultancies across the UK offered one-day programmes or short workshops showcasing the untapped potential of career returners in their sectors, clients could discover the significant benefits of hiring from this valuable talent pool.”

VERIPAYE RAISING PAYROLL STANDARDS AND

In

PROTECTING

WORKERS

today’s dynamic and increasingly scrutinised contractor sector, ensuring robust payroll compliance and safeguarding the rights of workers has never been more critical

At FCSA, our unwavering commitment to driving up standards and protecting those within the contractor ecosystem has led us to develop veriPAYE, a revolutionary payslip verification tool designed to inject much-needed transparency, security and affordability into the industry.

For too long, the payroll landscape has been plagued by opacity, slow processes and the potential for exploitation. Bad actors within the supply chain have created complexities that leave recruiters, umbrella companies and end clients struggling to maintain complete confidence in their payroll processes. This environment breeds uncertainty for workers and exposes businesses to significant compliance risks.

veriPAYE is our answer to this challenge – a game-changing solution built on the principles of clarity and fairness.

As a non-profit organisation, our driving force is to elevate industry standards, not to maximise profit. This ethos is reflected in veriPAYE’s accessible pricing, starting at just 9p per payslip for umbrellas and fixed at £59 per month for recruiters – a fraction of the cost associated with existing, often cumbersome, verification services.

Why is veriPAYE essential for you?

The cornerstone of ethical payroll practices lies in accurate and

transparent payslip verification. Ensuring that workers are paid correctly, in full compliance with HMRC regulations, is not just a legal obligation; it’s a fundamental aspect of fair treatment and building trust.

Traditional verification methods often fall short, proving to be costly, slow and opaque, adding unnecessary expense and complexity to already intricate supply chains.

veriPAYE directly addresses these shortcomings by offering real-time verification of payslips. This empowers you as recruiters to instantly confirm that payments are processed accurately and in strict adherence to regulations, offering reassurance to your clients and candidates alike. This immediate verification significantly reduces the risk of businesses unknowingly working with non-compliant payroll providers and inadvertently supporting disguised

remuneration schemes – a major challenge within the umbrella market. Transparency and accountability are at the heart of veriPAYE. By providing a clear and auditable trail of payroll information, we foster a culture of trust and accountability throughout the supply chain. Recruiters can confidently place candidates, knowing that the payroll processes are transparent and verifiable. End clients can be assured that their supply chain adheres to the highest ethical standards, mitigating potential reputational and financial risks.

Seamless integration is a key design principle of veriPAYE. We understand that businesses rely on existing payroll systems, and implementing a new tool shouldn’t create unnecessary disruption. That’s why our API is free for all software vendors, making it incredibly easy for payroll platforms to integrate veriPAYE directly into their existing infrastructure. This frictionless integration ensures a smooth transition and allows businesses to leverage the power of veriPAYE without significant upheaval. veriPAYE is more than just a verification tool; it’s a commitment to a better future for the contractor industry. By empowering businesses with the ability to verify payslips quickly, affordably and transparently, we are collectively raising payroll standards and actively protecting workers from unfair practices. Ready to take the next step towards transparent and secure payroll? Visit veriPAYE.co.uk to book a demo and nd out more! s with payroll and disguised transparen veriPAYE.c find m

NAVIGATING THE SHIFTING RECRUITMENT LANDSCAPE IN THE US

A panel discussion at the 2025 Recruitment Agency Expo at London’s ExCel recently explored the recruitment challenges and opportunities of working in the US under President Donald J Trump’s second administration. Organised by Recruiter and chaired by editor DeeDee Doke, the panel included: Peter Healey, CEO, e-financial careers; Matt Cameron, CEO, LGBT Great; and Kevin Barrow, partner, international law firm Osborne Clark.

or UK recruitment agencies with US clients or those placing candidates in the US, potential changes in employment policy, diversity & inclusion (D&I) approaches, and business confidence present both challenges and opportunities.

The Trump administration has already started to roll back on D&I initiatives and is expected to focus on deregulation too. Some firms are scaling back official D&I commitments due to political pressure, while others continue to prioritise diverse hiring – just

under a different name. For recruiters, this means navigating a complex landscape where public statements don’t always match private hiring strategies.

“So, statements [about D&I] are changing, but the behaviour of talent acquisition teams and HR teams remains pretty unchanged. They know a diverse workforce is good for business,” says Matt Cameron, CEO, LGBT Great.

Many US firms are removing references to D&I in financial

19

Nineteen Democratled states challenged President Trump’s initial attempts to slash the federal workforce

reports – 400 of the S&P 500 firms have done so already. Executive orders and new government policies are forcing businesses with federal contracts worth billions of dollars to scale back public commitments to diversity or risk losing contracts.

However, the shift is more about language than substance. While terms like D&I are disappearing, organisations are still investing in hiring diverse candidates. Many companies now refer to these initiatives as talent community programmes, reflecting a more low-key but continued commitment.

“If you look at some of the financial statements of organisations, they will say one thing, but that’s not necessarily reflective of the behaviour within the organisation,” says Peter Healey, CEO, e-Financial careers. “D&I looks like it is being scrapped but it is being rebranded and repositioned. And for some recruiters that can be positive. Quotas will go for under-represented groups but there will still be a focus on diversity.”

Redefining D&I

Healey says organisations are unlikely to publicly share diversity targets, but they will continue to have soft targets. Cameron agrees. “Organisations are still going to want to support all of their people, because they want to reflect society as much as possible,” he

“D&I looks like it is being scrapped but it is being rebranded and repositioned. And for some recruiters that can be positive. Quotas will go

for

underrepresented groups but there will still be a focus on diversity”

says. “So, to do that, different communities need to be involved in different ways. Everybody wants to see an element of themselves inside an organisation. Do I think that organisations are going to stop engaging with diverse communities? No, because the social, ethical and business imperatives for doing D&I still remain incredibly strong, and that’s not going to go away.”

Cameron thinks organisations need to take a different approach to how they define D&I. “How we redefine D&I in the context of recruitment and this backlash is really important,” he says. “I think diversity has to link to performance and innovation, because we know that, as long as there is cohesion and psychological safety, businesses with workers with more diverse backgrounds and more diversity of thinking are much more likely to make better decisions, and are much more likely to innovate, and innovation is a driver of business.”

“In terms of offshoring, it will definitely be good for US staffing businesses, if and when President Trump makes it hard for US companies to move operations offshore”

deregulation may make hiring easier, states like California, New York and Illinois are expected to maintain stricter rules on staffing agencies.

An example of this federal/state divide is President Trump’s initial attempts to slash the federal workforce. Nineteen Democrat-led states challenged the decision (see BBC News, 19 March 2025) and now federal agencies are looking to bring back nearly 25,000 workers who had been fired.

Kevin Barrow, partner, international law firm Osborne Clark, says the ease with which business is conducted from a regulatory perspective in the US will depend on where you do business.

“Trump is pro-business and pro-deregulation, which are good for business. But the thing to remember is, even if this is good for the US on a federal basis, the US is not one country. Democrat states will have strong regulation around staffing.”

So, despite downplaying their D&I efforts publicly, US clients will still expect recruiters to provide diverse talent pools. And with less emphasis on quotas, there will be more focus on hiring the best talent from all backgrounds. Recruiters will need to navigate these conversations sensitively and understand the nuances to deliver diverse candidate pipelines.

The UK market is unlikely to see the same level of D&I rollback, but with many global firms taking cues from the US, recruiters should monitor how these trends influence hiring priorities in Europe. Cameron says UK recruiters need to do three things:

1 Leverage the richness and diversities of the communities and networks that they bring to organisations

2

Focus on assessment criteria, talk objectively about the

process and ensure that it’s fair for everybody

3 Build relationships with internal talent attraction professionals so that you can be their eyes and ears in the marketplace – a lot of companies impacted by executive orders are not going to be able to be public about diversity.

Changing regulations

Trump’s pro-business stance is another major factor that will shape recruitment trends. His administration has promised to cut red tape, reduce hiring restrictions and encourage job growth – moves that staffing agencies will generally welcome. However, the regulatory landscape remains complex. US employment laws vary state by state, and while federal

Offshoring recruitment

Another major factor is offshoring. Trump’s economic policies aim to bring jobs back to the US, particularly in manufacturing and technology. This could increase demand for recruiters to source local talent in sectors that previously relied on outsourced labour. However, offshoring of recruitment services itself is unlikely to be affected, meaning UK agencies can still support US hiring remotely.

“In terms of offshoring, it will definitely be good for US staffing businesses, if and when President Trump makes it hard for US companies to move operations offshore. He’s technically trying 400

to make it hard to offshore jobs or have jobs offshore, and bringing jobs back to the US will be a good moment for staffing and recruiting companies,” says Barrow.

He adds that offshoring recruitment services is unlikely to be affected by US legislation: “The good news for recruiters is that if they themselves want to offshore services, it doesn’t look like the legislation Trump is looking at will affect that. It’s all about manufacturing. So as a recruiter, you can operate from India, servicing the US markets, finding jobs for people whose jobs are going to move back to the US.”

In the short term, the deregulation of energy and AI will be good for business, whatever we may all feel about the impact

on the planet and humanity, says Barrow. His top tips for UK recruiters are to understand state-specific regulations as they will be crucial for those working in the US market; to be prepared for new opportunities created in industries affected by offshoring reversals; and to keep an eye on evolving employment laws to ensure compliance and mitigate risks.

Looking ahead…

Beyond policy changes, the economic climate under Trump is starting to affect recruitment decisions. Uncertainty around tariffs and trade policies are

25,000 Federal agencies are looking to bring back nearly 25,000 workers who had been fired

“So as a recruiter, you can operate from India, servicing the US markets, finding jobs for people whose jobs are going to move back to the US”

affecting business confidence, making some US firms cautious about hiring.

However, there are pockets of optimism. Some US firms are exploring international acquisitions to hedge against uncertainty, says Barrow, and the UK remains an attractive destination for investment.

And gender diversity remains a focus, especially in financial services, with firms under pressure to improve representation in senior roles. “US employers need to be more representative of the customers they serve,” says Healey.

Recruiters who can provide diverse candidate pipelines – even without explicit quotas – will remain valuable partners.

In the face of so much uncertainty in the US market, the panel urged UK recruiters to focus on understanding what US clients really need – which may not always align with what they say publicly.

When it comes to D&I, Cameron advises recruiters to: leverage community networks and demonstrate the depth of talent pools and the value of inclusive hiring focus on objective hiring processes that will reassure clients that are navigating D&I sensitivities and help them to understand how businesses are

adapting to Trump-era regulations.

At the same time, the shift in US hiring laws could bring new opportunities. With many firms prioritising speed and efficiency in hiring, UK recruiters can offer: access to a diverse global talent pool, meeting hiring needs while navigating political sensitivities

expertise in compliance and regulatory changes, helping firms adapt to state-by-state employment laws strategic recruitment support for firms looking to expand internationally or adapt to changing workforce needs.

For UK recruitment agencies, staying agile and informed is key. By understanding what firms need (even if they don’t say it publicly), positioning themselves as market intelligence experts and offering diverse talent pipelines, UK recruiters can seize opportunities amid uncertainty. The US hiring landscape is shifting – but there will be many opportunities for those who can adapt to the shift. ●

WHAT HAVE YOU BEEN UP TO? GET IN TOUCH!

Whether you’ve

been

trekking

up a hill,

making a team look brill, donating chocs to fill [a foodbank] or walking a mill-ion steps, you lot have been busy!

DANIEL OWEN NETS A SPONSORSHIP WITH THE PANTHERS

Built environment specialist recruiter Daniel Owen is sponsoring the Panthers Elite Netball Club, supporting talented female athletes aged 7-18 across Surrey and Hampshire. The partnership provides essential kit and support as all the teams look to boost their presence during competitions. Daniel Owen CEO Karl Burnett regularly attends weekend matches, and the company has plans for joint charity events throughout the year.

PINEAPPLE RECRUITMENT GIVES EASTER TREAT TO FOODBANK

Staff from Midland-based recruitment firm Pineapple Recruitment, which specialises in providing staff for the hospitality and catering industries, donated more than 200 Easter eggs to Worcester Foodbank for local children to enjoy over the Easter break.

L-r: Abby Hooper and Kasia Krieger, Pineapple Recruitment, with Penny Perrett and Sue Campbell from Worcester Foodbank at the rear

L-r: Cindy Mason-Morris (Armed Forces partnership officer), councillor Fiona Doran, Peter Heap, Adrian Payne (Armed Forces champion for Telford Mind) and Steven Franklin, Jonathan Lee Recruitment

VETERANS

CAFÉ GETS BOOSTS FROM HEAP’S WREKIN CHALLENGE

Peter Heap, a principal recruitment consultant at Jonathan Lee Recruitment (JLR), has handed over a cheque for £3,760 to Telford Mind’s Veterans’ Café after completing the Wrekin 100 Challenge. As an Armed Forces Covenant Champion and a veteran himself, The Wrekin 100 Challenge saw Peter take on a gruelling hike, scaling the 1,334ft Wrekin Hill in Shropshire 100 times during 2024, raising funds and awareness for the cause. JLR gave £2k of the donation, so well done Pete and JLR!

ACORN STAFF SMASH WALKING GOAL FOR CANCER RESEARCH

Recruiter Acorn by Synergie has smashed its goal of walking 1m steps in March to raise funds for Cancer Research UK (CRUK). The team of 21 employees surpassed the target by a massive 4m steps through walking, running and jogging. Along with other fundraising activities undertaken this year, the team has raised £7,514 for CRUK, supporting life-saving research into cancer prevention, treatment and care.

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ACORN BY SYNERGIE

The recruitment firm has appointed Michaela Posnett as director of sales. Her responsibilities will include developing sales strategies and driving business growth for the recruiter.

AIRSWIFT

Two independent non-executive board members have joined the global workforce solutions provider. Non-exec directors Melody Meyer and Don Sloan are appointed as STEM specialist Airswift continues to expand its global footprint. Meyer brings more than 35 years of leadership

experience in the energy sector, including board positions at BP and AbbVie. Sloan has served as CIO at Randstad USA and Kforce.

APSCO

The Association of Professional Staffing Companies has promoted Samantha Hurley to UK managing director from her role of operations and member services director. The move supports the trade association’s continued international expansion, with global CEO Ann Swain working closely with APSCo and APSCo OutSource brands across APAC, Europe and the Americas regions.

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

Stott and May, a provider of talent and project solutions to highgrowth technology businesses, has appointed Laura Beavis as group CEO. Reporting to chairman and founder Stephen Stott, Beavis will lead the group’s strategic direction and oversee operations across all brands, including Stott and May, Stott and May Consulting, and Evergreen Talent Partners.

Beavis joined Stott and May in September 2017 as COO. In April 2019, she was appointed MD for the Americas, delivering sustained performance gains and record annual results for the group in the region.

Beavis is succeeded in her role as MD of the Americas region by Agni Ghosh, who joined the business in December 2023 as a director from global specialist recruiter Phaidon International.

ASPEN PEOPLE

Glasgow-based specialist executive search firm has appointed Edel Harris as its new non-executive chair. Harris succeeds Professor Lorne Crerar.

ASSOCIATED BRITISH PORTS

Rachael Parr has joined UK port operator ABP as its new group HR director. Her appointment comes following the previous group HRD Alison Rumsey’s decision to retire from ABP in May. Parr joins from Electricity North West, where she was people and corporate services director.

BENENDEN HEALTH

Mike Hay has joined the private medical healthcare firm as chief people officer after a six-month interim period in the role. Hay will focus on people strategy, workforce development and embedding digital transformation within HR and business operations.

CLARKSON OWENS

The Glasgow-based recruitment firm has promoted Jill Davidson to its board of directors. Joining the business in 2018, she currently heads up the commercial arm of Clarkson

Owens. Her move to board director will also see her become a part-owner of the firm.

COBALT RECRUITMENT

Maria Sinclair has been appointed to MD of UK operations at the international agency specialising in real estate and construction. She has more than 25 years’ experience in the recruitment sector, with over two decades at Cobalt specialising in Real Estate.

COMPASS GROUP UK & IRELAND

The provider of food services has appointed Hilary Goldby as HR director for its business and industry (B&I) division. Goldby will report to both CEO Morag Freathy and people director Laraine Kemp, people director at Compass Group UK & Ireland.

EAMES CONSULTING

James Rydon is appointed as executive director of specialist disciplines, encompassing the recruiter’s heritage insurance division. He joined the business as a senior consultant in 2015, with a promotion to partner, associate director and then director.

MADISON BERKELEY

The specialist real estate recruitment firm has hired Patrick Webb as associate director. He joins from Oyster Partnership.

SELLICK PARTNERSHIP

Greg Jones has joined the recruitment specialist business to spearhead a new office in Birmingham.

SYDNEY MITCHELL

The Midlands law firm has appointed Sharon Levell as HR manager to lead its people strategy, employee engagement and recruitment efforts.

THE REC HUB

Martin Dangerfield has been appointed talent strategy director at talent acquisition partner the rec hub. He was previously CEO at immersive, an Estonian-based talent acquisition firm.

UKG

The provider of HR, payroll and workforce management solutions has made two C-suite appointments. Beth Conway joins as chief people officer and Prakash Kota is appointed chief information officer, based in San Francisco in the US.

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Recycle your magazine’s plastic wrap – check your local LDPE facilities to find out how.

We’re not in the same market anymore – and I don’t just mean the businesses we serve. I’ve been reflecting on the disconnect between how the traditional recruitment business model works, and what clients actually need from us now.

It’s been a tough 18 months for pretty much everyone – including ISL Talent. While we’ve managed to bring on 10% more clients than the previous year, those clients filled 40% fewer roles on average.

The economic cycle might tick up again, but this could be a permanent shift in the market, not a one-off blip. Start-ups are still hiring, but not like they used to. The days when headcount growth alone was a success metric may never return. However, I’m not here to spread doom and gloom! Rather to share how I see some start-ups showing us the way.

Making every hire count

Start-ups today are hiring with laser focus, looking for people who add value from day one and can adapt as the business grows.

That means: fewer hires, with bigger expectations; a preference for generalists with learning agility; cultural alignment as a non-negotiable, not just a ‘nice-to-have’.

Recruiters really need to get better at understanding the ‘why’ behind each role. Start-ups can’t afford to get it wrong, and neither can we.

Purpose over pay

Without inflated salary budgets, start-ups are leaning into their long-term vision – offering equity, autonomy and the chance to make a dent in the universe.

Founders are often brilliant storytellers, framing the journey in a way that draws people in, but they can’t do this all by themselves.

Are we helping our clients tell their story? Are we

“Are we helping our clients tell their story? Are we preparing candidates to evaluate potential, not just pay?”

Alan Furley

Hiring without a safety net:

What start-ups can teach the recruitment industry now

preparing candidates to evaluate potential, not just pay? By doing this we are improving the cultural experience on both sides.

Flexibility as strategy

More founders are embracing fractional or project-based hiring, bringing in experienced talent a few days a week instead of hiring full-time. This model keeps burn rates low, brings expertise in earlier and allows flexibility as priorities shift.

This is a chance for recruitment leaders to really consider whether being wedded to a commercial model built on 20% of salary is the right one. Recruiters who are investing in their networks, advisory support and creative commercial structures will be the ones with the future advantage.

Doing

it themselves

We’ve also seen more founders taking on hiring themselves – from direct

outreach to final interviews. At times I’ve felt like this was a major threat, but if we want to stay relevant, we need to evolve our offer –providing sharper insights and suitable alternatives.

What does it mean for us?

There’s something raw and instructive about watching start-ups hire in survival mode. There tends to be fewer vanity hires or bloated organisation charts.

To be a strategic partner, value quality over quantity, long-term fit over short-term wins. AI has already changed how things work, and this pace of change will only accelerate.

I believe if we build models around impact – hiring the right people for the right reasons – and back it with honesty, agility and curiosity, we’ll earn our place in what comes next. ●

ALAN FURLEY is CEO, ISL Talent